Did you know that the number one reason customers cancel subscriptions is because they get too much product?
Tune in to this week's episode of the eCommerce Podcast where Matt is joined by Ben Fisher from Rodeo to talk about how to make your subscriptions model stand out from the rest and give your customers the best experience while retaining them for a long time. We delve deep into the main problems associated with standard subscription models and how brands can address these concerns and improve the overall subscription experience. You do not want to miss this episode!
ABOUT BEN:
Ben started his entrepreneurial journey as a kid in Maine and later worked at a tech startup during the first Dot Com boom. He co-founded CartHook - a checkout optimization platform for DTC ecommerce brands that has processed over $1 billion on behalf of merchants. He now runs Rodeo, a platform that offers personalization features to maximize customer retention and lifetime value for 8-figure DTC brands that utilize subscription-based models.
Here’s a summary of the great stuff that we cover in this show:
- Ben discusses the importance of a good customer experience, specifically with subscriptions. He emphasizes that brands should consider the nuances and individual consumption patterns of their customers, and offers a solution called "on-demand" reminders that give consumers more control and eliminate the concern of getting too much or running out of a product.
- Convenience is key in consumer subscriptions and figuring out the most convenient method for each individual is important for maximizing customer lifetime value. Brands can offer questionnaires or check-ins to tailor the subscription to individual preferences rather than assuming everyone needs the same subscription model. Reminder emails or texts leading up to the desired replenishment period can also be helpful in simplifying the subscription process for customers.
- Ben discusses the different subscription options offered by the company, including a standard subscription, on-demand feature, and one-time purchase option. The on-demand feature allows for convenience and eliminates checkout friction while still allowing for upsells and cross sells. The segmenting of customers and addressing their reasons for canceling or skipping subscriptions also helps to retain customers and offer a better-suited program for their consumption style.
- If the customer wants to delay the next purchase, they can select the snooze feature which suggests pre-filled periods of three to five days, one week, and other options to remind users that they may be running out of the product soon and would they like to order some more? However, some users can explicitly choose a date and sometimes even up to three months in advance.
- Ben & Matt explore the perks of subscriptions and how to add value beyond just getting subscribers. They discuss the importance of thoughtfully designing membership programs, offering benefits like free shipping, members-only pricing, and individual subscriptions, and the risks of discounting subscriptions too much and attracting the wrong customers. The focus is on providing the best experience for each customer and creating a healthy, sustainable subscription model.
- Matt talks about a a subscription he signed up for which he had forgotten about and was charged $1000 without warning. Ben explains that if the company had been proactive with their onboarding process and personalized their messaging, they may have been able to retain him as a customer. A bad experience can leave a negative impression on a customer.
For complete show notes, transcript and links to our guest, check out our website: www.ecommerce-podcast.com.
