As customer buying habits are trending towards instant gratification and hassle-free shopping experience, subscription models are needed to provide more value to customers with low effort. Subscription-based e-commerce businesses have incredible growth opportunities. With subscriptions, you can turn transactions into relationships.
If you’re considering implementing e-commerce subscriptions to your store, looking for a knowledgeable and experienced company is vital to get more from your BigCommerce development efforts. BigCommerce is a well-reputed eCommerce platform that enables online merchants to create and manage online stores more efficiently. This eCommerce platform comes with an array of built-in subscription management tools. But you can also add a third-party subscription management tool in BigCommerce to provide recurring options to your customers.
If you’re new to BigCommerce, you might ask how to implement subscriptions in BigCommerce and what businesses can benefit from subscription models. Please read on to learn about eCommerce subscriptions and their benefits for online businesses.
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Benefits of Implementing Subscriptions in BigCommerce
Implementing subscriptions in BigCommerce can benefit your online store in the following ways
- Increase Acquisition
Subscriptions have the ability to foster customer relationships with the recurring nature of their offerings. They can attract new customers with the help of their value drivers, including convenience and financial incentives.
- Accurate and Easier Forecasting
Subscriptions can make forecasting easier and more accurate for different business aspects, such as supply chain management and inventory. Subscriptions are valuable for tracking customers’ behavior and product performance over time.
- Increase Retention
Customization opens new doors for online stores to boost their retention and increase loyalty. A report by McKinsey shows that 28% of access subscribers believe that having a personalized experience is the most important reason for staying with a subscription. Implementing subscriptions in BigCommerce can give customers a customized buying experience.
- A Robust Brand Community
Subscription businesses can track product performance and customer behavior over time, which helps them create a strong brand community. With subscriptions, you can use a variety of touchpoints to interact with your customers and prioritize their needs. You can also encourage your existing customers to leave positive reviews on social media. This approach will foster brand loyalty and help create a loyal brand community.
Implementing Subscription in BigCommerce: Things You Need to Know
BigCommerce is a versatile eCommerce platform that enables you to integrate subscription apps with your online store conveniently. The subscription management tools are verified by BigCommerce. It means you don’t need expertise in programming and extensive coding skills to implement subscriptions in BigCommerce. But if you want a custom integration, you can decide on a reliable partner who can provide cutting-edge BigCommerce development services.
BigCommerce subscription apps allow you to sell services and products while adding payment methods to invoice and bill customers regularly. Your subscription app must meet your store’s and target audience’s needs. You can find different subscription apps for your online business, including but not limited to:
- ReCharge Subscriptions
- Bold Subscriptions
Along with BigCommerce subscription apps, you can integrate a third-party subscription model into your online store. This manual task may require specialization in coding expertise in programming.
When implementing a third-party subscription model to your BigCommerce store, you may face the following challenges:
- Budget constraints
Custom BigCommerce subscription tools require additional investment. You need to go through the different phases of integration, which may result in a financial burden.
- Technical Knowledge
You can’t complete a custom BigCommerce subscription integration project without having technical and coding skills. You need to hire an experienced company with proficiency in different BigCommerce development services, such as UX/UI design, Big Data, API integrations, and compliance with PCI.
- PCI (Payment Card Industry) Compliance
BigCommerce subscription apps already have PCI compliance. But when implementing a third-party or custom subscription management tool to your online store, you need to ensure its PCI compliance to avoid payment card data theft and security breaches.
Things to Consider Adopting an eCommerce Subscription Model
To get desired results, you need to consider the following factors when implementing a subscription to BigCommerce:
The audience is the most significant aspect of getting a powerful impact from the subscription model. You need to target consumers more willing to commit to a subscription, as surveys highlight that users aged between 25 and 44 with an average income between $50,000 and $100,000 tend to commit to a subscription more than others.
- Inventory Management
When adopting a subscription model, you must ensure an additional inventory stock. It will save potential buyers from order cancellation and delivery issues, resulting in higher customer satisfaction.
- Type of Product
Product category also plays a significant role in defining the effectiveness of a subscription business model. For example, Health and Wellness, Beauty and Personal Care, and Food and Beverages are the highly recommended categories for subscriptions.
What Type of Businesses can Benefit from Subscriptions
DTC (Direct-to-Consumers) brands are getting exclusive benefits from eCommerce subscription models. Statistics reveal that over 75% of DTC brands plan to incorporate subscriptions in their online stores. These brands are constrained to building a loyal buyer community and acquiring new customers because they rely on paid marketing to get more buyers. The e-commerce subscription model helps DTC brands make a loyal customer base and save extra recurring revenue.
Along with Direct-to-Consumer brands, the following brands can also enjoy the benefits of eCommerce subscriptions:
- eCommerce marketplaces and wholesalers more focused on one-time purchases can implement subscriptions to diversify their business models. For example, See New is a reputable beauty brand that offers subscriptions to beauty boxes they advertise and sell.
- Pure play eCommerce companies can design their business strategies to comply with the subscription models. For example, Kiwico is a famous platform that offers subscription lines of games and toys for kids.
An eCommerce subscription model is an excellent approach for increasing customer loyalty and building a solid brand community. You can implement a subscription model to BigCommerce to provide a unique purchasing experience to your customers. Integrating a custom subscription model may require technical skills and expertise in coding. An experienced BigCommerce vendor like Edvantis can help ensure a smooth third-party integration of a custom subscription management tool.