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- eCom Subscriptions 101
Hey there 👋
Subscriptions are awesome — predictable revenue, high customer LTV and retention, but.. that’s only on paper.
In practice, most brands don’t know how to properly integrate a subscription model into their eCom business 😯
Luckily, someone who’s made brands like Jolie, Feastables & Cadence over $100M shared his secrets for free.
Let’s get into Nik Sharma’s best practices on subscription models 🔥
1. Why The Subscription Model Works 📈
Every brand should consider a subscription program, here’s why:
1️⃣ Reliable & Recurring Revenue — subscriptions are predictable in terms of numbers, and can act as a safety net for your brand.
2️⃣ Customers Love It — being able to subscribe to a program & have monthly packages of coffee or dog food delivered right to their door is just too convenient.
3️⃣ LTV & Capital Increase — Subscribers are your most valuable segment. They’re consistent buyers and more likely to purchase additional products. Plus, recurring revenue (e.g., $100K/month compared to $100K in total sales) makes your business more appealing to investors.
Now that you’ve got an idea of the subscription model & why it works, let’s begin with identifying a problem.
2. What Problem is Being Solved? 🤔
Sounds like a no-brainer, but a working subscription starts by identifying a real & recurring problem for your customers. Think about:
1️⃣ Replenishment Needs — products like coffee, supplements, or pet food pretty much naturally lend themselves to subscriptions, nobody wants to run out of them and they always need them
2️⃣ Evolving Experiences — if your brand has a lifestyle angle, like beauty, fitness, or food, create subscriptions boxes that change monthly or seasonally
3️⃣ VIP Access — for brands with high-loyalty customers, the sub model can be a way to offer members-only drops & limited edition items
Based on what kind of problem you’re solving, decide on a cadence — how often will you bill your customers & deliver?
Weekly, bi-weekly or monthly could work if you sell supplements, snacks, skincare etc, and high-ticket items are better sent out quarterly.
Birchbox did something very unique — they saw a gap in the market & started offering customers a specific selection of beauty product samples monthly.
This addressed the problem of people wanting to try a new product WITHOUT paying full price, and they’ve built a loyal subscriber base like this 🔥
3. The Backend & Landing Page 📃
Now that you’ve got a problem you want to solve on a frequent basis, it’s time to do some back and frontend work.
Platforms like Recharge, Seal Subscriptions, and Skio are most commonly used, and will integrate well with your brand.
As for the landing page, be on point with these things:
1️⃣ Highlight Subscription Benefits — clearly present the perks, like exclusive discounts, early access to products, partner brand deals, or VIP events (up the perceived value)
2️⃣ Build Trust w/ Social Proof — a mix of reviews, testimonials, UGC, and comparison charts show why you are trustworthy
3️⃣ Convenience & Clarity — easy-to-understand content blocks showing what the subscription offers & how it works are a must
And above everything else, the visuals have to be pleasing. HelloFresh does everything above on a stellar level, as you can see above!
P.S. — UGC is awesome for building social proof, who wouldn’t want to see someone smiling enjoying your product?
Check out our eCom UGC Guide for a full crash course on how to start using it 🔥
4. Marketing The Subscription Program 💰️
Once your landing page & backend are ready, it’s time to market. The key is that your subscription is here to stay, for a long time. Here’s how to market it right:
1️⃣ Email & SMS Flows — Create email & SMS flows that only show up for non-subscribers. These nudge potential subscribers into your program by highlighting benefits or showing UGC-based reviews
2️⃣ Organic Social & Ads — in the ads, talk about the convenience of on-time shipping or share unboxing content from happy customers
3️⃣ Launch It Like A Product — if your subscription program is brand-new, treat it like a product launch. This means weeks (or months) of constant promotion — build hype through campaigns, teasers, and subscriber-only sneak peeks
A note on organic & social ads — we covered TikTok Search Ads just two weeks ago, this feature can get the right eyes on your ads, converting people right at the peak of their need & curiosity 🤯
5. A PSA on Friction.. 😬
Getting someone to buy your product is hard enough, and a subscription that can cost $50+/mo is even tougher — that’s why subscribing has to be frictionless & transparent.
And that doesn’t only apply to subscribing, but staying subscribed, too. Here’s what you should keep in mind:
1️⃣ Full Control — your subscribers should feel in control. Make pausing, skipping a month, or cancelling easy, without 5 different “Are You Sure?” pop-ups
2️⃣ Transparent Terms — no hidden fees, no surprise charges. Being honest with your customers creates trust and lowers churn (which is the scariest part of the sub model)
3️⃣ Automated Reminders — let your consumers know ahead of charges or shipments to give them a chance to adjust however they need
Managing subscriptions shouldn’t be harder than buying a product normally.
Dollar Shave Club is a perfect example of a transparent subscription model — in the above visual they literally tell shoppers that they’re free to edit, snooze or cancel their subscription at any time, and even change the delivery & billing frequency 🧐
6. Why Should Subscribers Stay? 😰
Getting a subscriber is just the start, it’s about retaining them for as long as possible. Ideally, your customers should feel that they have to stay (within reason):
1️⃣ Subscriber Perks — discounts, loyalty rewards, early shopping windows. This ties into our earlier point on VIP access, make subscribers feel really special with any incentive that makes sense
2️⃣ Surprise & Delight — celebrate subscription anniversaries with small but pleasant discounts, occasionally add in freebies to the next subscription, or even include handwritten notes to make your customers feel special
3️⃣ Content Still Works — and is the best. Send weekly exclusive guides (ideally UGC), product tips, or brand updates to keep them invested emotionally
BarkBox does everything right — each monthly box offers new dog toys & treats, with free gifts include and even special notes to make subscribers (and their pets) feel appreciated 🐶
And, while not a subscription box service, Amazon Prime is still a subscription model, and they retain customers like no joke. Prime offers free shipping, streaming services, exclusive deals like Prime Day — there’s just too much value to unsub 💯
7. Metrics & Optimizations 🤓
You can’t escape it. If you ignore the stats, sales will go down, so here are the key metrics you have to track to keep a healthy subscription model:
1️⃣ Churn Rate — the % of customers canceling their subscriptions during a specific time period, with high churn usually showing problems with customer satisfaction or perceived value
2️⃣ Customer Lifetime Value — the total revenue a customer is expected to generate while subscribed. Separate the CLTV of your shoppers from your subscribers, as they are not the same
3️⃣ Customer Retention Rate — the percentage of customers who stay subscribed over a set period, this especially shows the stickiness of your offerinп
And as for optimizations, its important to A/B test things like pricing tiers, welcome offers, cancellation flows (offering alternatives like pausing instead of unsubscribing, for example), and subscription length offers — each sub model in each niche works differently.
In short, integrating a subscription program is worth it for your brand, if:
☑ Your products solve a recurring need & have a convenience factor
☑ Your product line can evolve over time
☑ You’re focused on long-term growth & building a high-loyalty consumer base
That’s that! We covered the best practices for subscription models, inspired by Nik Sharma 🔥
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