Automatically swap out-of-stock products for similar alternatives.
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Example: If Starbucks' Keurig coffee cups are out of stock, automatically swap them with Peet's Keurig coffee cups and inform the customer in advance via an email notification. This minimizes customer churn while keeping sales high.
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Encourage customers to explore other variants of the same product.
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Example: If a customer subscribes to French roast Keurig cups, ask them in the welcome email whether they’d like to try other Starbucks flavors (like Sumatra or Caffe Verona). Automatically swap the flavors every month to keep the experience fresh and exciting.
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This feature can be used to automatically swap products based on the customer’s changing needs.
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Example: For baby products, if a customer subscribes to size 2 diapers, you can automatically swap them to size 3 diapers as the baby grows, ensuring continuity in the subscription.
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Create a dynamic subscription model where products automatically swap based on pre-set rules.
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Example: For a bookstore, create a mystery genre book subscription where customers receive the top mystery novel of the month from the New York Times bestseller list.
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Example 2: For an ice cream store, swap flavors weekly to create excitement around a "New Flavor Every Week" plan. You could offer Vanilla in Week 1, Strawberry in Week 2, and so on.
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Offer tiered discounts to encourage customers to subscribe for a higher-value order.
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Example: A subscription to pantry items could work like this:
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Reward long-term subscribers with increasing discounts based on their commitment.
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Example: Offer a 5% discount for the first 20 subscription orders and then increase it to 7% thereafter.
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Experiment with different combinations of discount tiers to find the optimal balance between attracting new customers and maintaining profitability. The right strategy depends on your business and customer insights, so use trial and error to find what works best.
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Keep customers informed about important changes to their subscriptions, including new subscription creation, upcoming orders, product swaps, and expiring payment methods.
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Involuntary churn occurs when a transaction fails due to issues like expired credit cards or insufficient balance. Use email notifications to remind customers to update their payment details before their subscription order is processed, reducing churn rates.
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Use email notifications to engage customers with promotional content. For example, when notifying customers about an upcoming delivery, introduce a new product in your store to keep them interested and engaged.
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Offering prepaid billing alongside regular pay-as-you-go options gives customers more flexibility and convenience.
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Some customers prefer paying upfront for multiple orders to avoid monthly billing hassles.
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Prepaid subscriptions ensure a lock-in period for customers, providing businesses with guaranteed revenue for a longer period. This results in increased customer lifetime value (LTV).
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Example: Studies show that prepaid subscriptions can increase customer value by up to 94%, as customers are financially committed to the service.
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Prepaid billing simplifies financial management by reducing the number of billing cycles. For example, if a customer subscribes for 12 months in advance, the business only has to handle one billing cycle per year, easing the administrative burden.
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Prepaid billing accelerates the cash inflow for the business, helping improve cash flow and providing a financial advantage. This is particularly useful for businesses that rely on a steady cash flow for growth.