You already know how bad stockouts are for revenue (costing brands an estimated $1T yearly). But you might not know that stockouts are even worse when that revenue comes from subscriptions.
Why? Because, unlike one-off sales, stocking out of subscription products means customers don’t get their already-promised-to-them orders. When this happens, subscribers are much more likely to churn, cutting off future revenue that should have been a gimme.
Luckily, with the new subscription feature (powered by Smartrr, the leading subscription app built to increase LTV), you no longer have to worry about this happening.
👋 Have you met Smartrr? Smartrr is the leading “next-generation subscription app” for Shopify brands. Thanks to a branded subscriber account experience and flexible subscription management options, Smartrr customers (including Starface, Neuro, and Jolie) enjoy an average of 5x more sales over a subscriber’s lifetime. Learn more.
With the all-new subscription feature, maintain optimal inventory levels that can easily fulfill your one-off and subscription demand (without overstocking to make it happen).
But say the unexpected happens (like you go viral on TikTok or your supply chain kinks), and a stockout is unavoidable. No worries – ensure you get the highest ROI from your available inventory by prioritizing your most loyal customers first.
To do this, get personalized recommendations on how much stock to set aside specifically for subscriptions. And enjoy reduced churn, increased customer loyalty, and boosted profits while you’re at it.
🔥 Tip: Stocking out doesn’t have to mean missing out on one-off revenue. Instead, sell on backorder with Cogsy. Backorders convert at nearly the same rate as selling that same product in stock. Learn more.
During “the Great Unsubscribe of 2022,” retail subscriptions per consumer fell 40% from its October 2021 peak. Meaning, as a recession looms, consumers are looking for any excuse to cut extra expenses.
And you can bet that retail subscriptions that aren’t fulfilled as promised go first. (After all, 33% of customers will switch companies after 1 bad experience — like a subscription showing up late. By the 2nd bad experience, that number shoots to 60%.)
But this churn is totally preventable with the new subscription feature. With it, not only do you ensure every order gets fulfilled as promised, but you enjoy higher retention rates as a result. More specifically, you’ll retain 94% of monthly subscribers (on average) when you fulfill these orders as promised, compared to only 63% doing the same for one-off orders.
Subscriptions, when executed well, naturally lend themselves to higher customer loyalty. That’s because 80% of customers develop brand loyalty over time as their expectations are continuously met.
And consumers have come to expect convenient and frictionless ecommerce experiences. Subscriptions effortlessly meet these expectations when products magically appear on their doorstep as needed (like when you manage subscriptions with this new feature).
But what if the worst-case scenario happens, and you absolutely can’t fulfill someone’s subscription and meet those expectations? Then, use the Cogsy + Smartrr integration to proactively offer a product swap. While seemingly small, proactively addressing customer needs is a proven strategy for preserving customer loyalty (and, again, reducing churn).
By prioritizing stock for your most loyal customers, you ensure that reliable revenue keeps coming. And you do it without investing heavily in acquisition or retention strategies. This naturally increases your bottom line.
Think about it: Brands are losing a record average of $29 on every newly acquired customer (up 222% in the last 8 years) due to eye-watering customer acquisition costs (CAC) and declining return on ad spend (ROAS). But subscriptions can offset today’s high CAC by solidifying a loyal group of returning shoppers.
Best part? These loyal customers are worth far more than short-term sales. In fact, Modern Retail reported that loyal customers (like your subscribers) are worth 22x more over their lifetime than your average one-off customer.
That’s because the probability of a transaction jumps from 5–20% for new customers to 60–70% for loyal, returning ones. But if that customer is a subscriber, that sale is all but guaranteed (and you spend virtually nothing to make it happen).
The numbers don’t lie. Subscriptions are an easy way to rake in a lot more revenue without spending more.
And with Cogsy’s new subscription feature, you can eliminate inventory management headaches and make fulfilling every subscription order a no-brainer.
The subscription feature is available to all Cogsy + Smartrr merchants and ready to use in your accounts. If you need help getting started, drop us a line at email@example.com – we’d love to chat.
Don’t use Cogsy yet? Try it free for 14 days.