Subscription

Subscriptions can mean various things in e-commerce, such as recurring payments, plans, tiers, and more. But what exactly does a subscription entail in e-commerce and with Crystallize?

The subscription business model has seen exponential growth in recent years, with notable success stories in industries ranging from software and entertainment to physical goods and professional services.

Still, even with growing adoption, many businesses are unaware of the full spectrum of benefits that a subscription model can offer. We’ve already discussed this in our What's a Subscription Business Model and How Does It Work? blog post. So, here, let’s just quickly go over the benefits of subscription models for businesses and customers.

For Businesses:

• Predictable Revenue: Subscription models ensure a steady cash flow, aiding in better financial management and planning.
• Customer Loyalty: Continuous customer engagement fosters loyalty, reducing churn rates and increasing lifetime value.
• Operational Efficiency: Streamlined processes and automated billing reduce administrative burdens and costs.
• Market Differentiation: Unique subscription offerings can differentiate a business in a competitive market.

For Customers:

• Convenience: Regular, automated deliveries or services eliminate the need for repeated purchases.
• Cost Savings: Subscriptions often provide better value than one-time purchases, especially with bundled offers or long-term commitments.
• Personalization: Ongoing services can be tailored to individual preferences, enhancing customer satisfaction.
• Exclusive Access: Subscribers often enjoy exclusive content, products, or services, adding to the perceived value.

It is not all bells and whistles. There are some challenges as well. The subscription market is becoming increasingly saturated, with numerous players vying for the same customers. Retaining customers is a significant challenge, and high churn rates can undermine the benefits of the subscription model, leading to revenue instability.

Finally, scalability issues, such as maintaining service quality with a growing subscriber base or the technical challenges of scaling a subscription platform, are a concern for growing businesses.

A subscription business model is a revenue model that allows customers to pay a recurring fee, typically monthly or annually, to gain access to a product or service. Unlike traditional sales models, which focus on one-time transactions, subscription models emphasize ongoing customer relationships, providing continuous value in exchange for recurring payments.

Subscriptions are already embedded in our culture, so much so that we do not consider them special. The average U.S. consumer subscribes to 3.7 services (source), spanning from electricity and apartment rent, streaming services like Netflix or Spotify over office furniture renting like Nuwo, and phone cloud storage iCloud to (why not?) commerce platforms like Crystallize and productivity apps such as Microsoft Office.

The above should not come as a surprise because the demand is there. As of 2023, the average monthly spending on subscription services per consumer in the U.S. was approximately $237 (source).

The subscription model has gained immense popularity due to its ability to create predictable revenue streams, enhance customer retention, and provide businesses with valuable insights into customer preferences and behaviors.

Wow… that’s great, but is it the right fit for your business? Let's explore that.

This post explores three important functions: fetching products, adding to a cart using our brand-new Shop API and pushing orders. The queries mentioned in this post are not tied to any language; you will use the same queries regardless of your language.

In the ever-growing world of eCommerce, where consumers have endless choices, brands rule the world. Brands rule shopping habits. Brands rule shoppers' expectations. Well, we might not be there yet, but we’re pretty damn close, and that’s what makes building brand loyalty more important than ever.

It’s what can set you apart from competitors and ensure a constant stream of revenue.

And the industry realizes this. For example, 50% of marketers list brand loyalty as one of the top goals of their content marketing strategies.

How can you win the hearts and minds of customers so that they return to your business repeatedly? Why do people go from casually browsing for a product to fiercely advocating for a specific brand? How did the brand win them over?

A couple of months back, I talked about it with Bård Farstad, our CEO, and Ståle Eikeri, our sales guy and COO, and what you read are my notes turned into an article. It’s not like we share the best-kept secrets of turning shoppers into brand loyalists, it’s more like we share our experience and what worked for us.

Subscription ecommerce business models have seen fantastic growth in recent years. With Crystallize being at the forefront of it, now is the time to dive into the ins and outs of starting, running, and scaling an eCommerce subscription business.