Subscriptions involve selling products or services on a recurring basis (usually monthly). Customers who purchase subscriptions are considered subscribers, and they are charged automatically and receive their products on a regular schedule. Generally speaking, this is a win-win for both the business and the subscriber; subscription businesses get regular, predictable revenue while subscribers get replenishment of products they need.
Is a Subscription Business Model Healthy for Ecommerce?
A subscription model is very healthy for ecommerce businesses. Ecommerce brands thrive off of repeat purchases and retention of their best customers. A subscription business model is the best way to retain customers as the company gets Monthly Recurring Revenue (MRR) from the customer and has a guarantee that the customer will spend more with them on the next automated subscription purchase (barring subscriber churn). Subscription business models are also great for increasing customer loyalty as subscribers tend to become brand loyalists and evangelists for the product at a higher rate than one-time purchasers (OTP).
Does Peel Analyze Subscriptions?
Peel integrates with subscription platforms - Recharge, Awtomic, Bold, Smartrr, Skio, Rodeo, and Stay.ai to pull your subscriber and subscription data right from the source. This gives you access to critical subscriber behavior metrics like Rate of One-Time Purchaser to Subscriber, Subscriber & Subscription Growth Rate, Churn Rate, and even Cohort Analysis by Subscribers like Customer Lifetime Value (LTV).