Posted by In today’s competitive eCommerce market, businesses need to find ways to stand out and provide value to their customers. One effective strategy is to offer recurring payments and subscription options. The later specifically provides a range of benefits for both the business and the customer. By offering subscriptions, eCommerce businesses can increase revenue, improve customer loyalty, and gain a competitive edge in the market. In this article, we will explore 10 reasons why every eCommerce business should consider offering subscriptions to their customers.
10 benefits to offering subscription options
- Increased revenue
- Predictable cash flow
- Customer loyalty
- Customer convenience
- Increased customer satisfaction
- Improved customer retention
- Better data and analytics
- Upsell and cross-sell opportunities
- Competitive advantage
- Reduced administrative costs
Increased revenue
Offering recurring payments and subscription options can provide a steady stream of income for your business. According to a study by Zuora, businesses that offer subscriptions have an average revenue growth rate of 9.3%, compared to 3.1% for businesses that only offer one-time purchases.
Predictable cash flow
Recurring payments allow businesses to plan and budget more effectively because you have a better idea of how much money you will be receiving on a regular basis. A study by PwC found that businesses that offer subscriptions have a more predictable cash flow. 74% of respondents reported that subscriptions have helped them improve their ability to forecast revenue.
Customer loyalty
By offering subscription options, businesses can create a loyal customer base. According to a study by McKinsey, subscription-based businesses have a customer retention rate that is three to five times higher than businesses that only offer one-time purchases.
Customer convenience
Providing subscription options makes it easier for customers to use your product or service because they don’t have to worry about making multiple purchases. A study by Deloitte found that 78% of customers prefer subscriptions because of the convenience and flexibility they offer.
Subscription options are associated with increased customer satisfaction
Customers appreciate the convenience of subscriptions and the ability to spread their payments out over time. According to a study by the Subscribed Institute, 87% of customers who have signed up for a subscription are satisfied with their experience.
Subscription options offer improved customer retention
Recurring payments and subscriptions can help you retain customers by providing them with a reason to continue using your product or service. A study by Zuora found that subscription-based businesses have a customer retention rate of 90%, compared to 33% for businesses that only offer one-time purchases.
Better data and analytics
With recurring payments and subscriptions, you can collect detailed data on your customers’ preferences and usage habits. By then analyzing that data you can improve your product or service and make better business decisions. A study by Bain & Company found that businesses that offer subscription options have a better understanding of their customers, with 76% of respondents reporting that subscriptions have helped them gain valuable insights into customer behavior.
Subscription options increase upsell and cross-sell opportunities
Subscriptions can provide opportunities to upsell and cross-sell other products or services to your customers. According to a study by PwC, businesses that offer subscriptions have a higher average order value. 69% of respondents reporting that subscriptions have helped them increase their average transaction size.
Competitive advantage
Offering subscription options can give your business a competitive edge in the market. A study by Deloitte found that 75% of customers are willing to switch to a competitor that offers a subscription-based service. By providing a convenient and flexible payment option, you can differentiate yourself from competitors who only offer one-time purchases.
Reduced administrative costs
Subscriptions can help you save time and money on administrative tasks. A study by the Subscribed Institute found that businesses that offer subscriptions have lower operating costs, with 71% of respondents reporting that subscriptions have helped them reduce their administrative overhead. So not only can subscription options increase revenue, they can lower business expenses.
A final thought
In conclusion, offering recurring payments and subscriptions through PayWhirl’s platform can provide a range of benefits for your business. From increased revenue and predictable cash flow, to customer loyalty and convenience, subscriptions can help your business grow and succeed. To learn even more about PayWhirl’s convenient and flexible subscription options, reach out to us on the live chat on https://app.paywhirl.com.