Your subscription ecommerce business may face some these common challenges when it comes to winning subscribers and keeping them around:
Subscribers aren’t finding your product via search engines
Your site frustrates visitors
Your discount popups aren’t getting the results you expected
People leave your site without making a purchase
Existing subscribers don’t spend more money with your brand
Your subscribers have too much stuff and it’s hard to adjust the cadence
Learn how to overcome 6 of the top problems ecommerce brands experience that lead to poor conversion and retention rates.
“What Shopify sells you is 85% of a commerce website,” she said. “It is a real website… but it is not searchable. It is not indexable. It’s not rankable. Those are all the places you make money.”
She compares this to buying “the shell of a house” versus buying a real home. You can decorate the shell all you want with nice pictures and fancy furniture, but it won’t function until it gets all the backend pieces put together: sewage, plumbing, and the other less-exciting aspects of homeownership.
In the same way, you can decorate your Shopify template with cool graphics, CTAs, and images. But until you put effort into the backend pieces, you’re just decorating a nice-looking shel of a website. And the results affect your brand in the following ways:
Katharine went on to explain that this not only costs you potential customers, it also costs you money.
When you buy Google ads, she says “you're buying up the difference between what you said you do and what Google confirmed you do." The more your site can eliminate that difference; the less expensive your ads will be.
Katharine has a few recommendations for brands facing this problem. Each of them involve making your site more scrapeable and indexable for search engines.
She says this starts when brands are hyper clear about who their customer is and what those people want. From there, you can position yourself as the best option to give them what they need so that Google will recommend you to those facing the problem you solve.
Here’s how you do that:
Each of these will make it easy for the search engine to know what you’re offering. The more you make that information easy for Google to scan and index, the more you make it make sense for Google to recommend your site to the people searching for the solution you sell.
Potential subscribers don’t want to wait for your site to load, and search engines won’t recommend ones with high bounce rates.
So what causes your site to slow down?
These features often feel necessary, but they usually don’t achieve enough results to make them worthwhile. Instead, they contribute to slow load times that frustrate visitors and scare away search engines.
That’s no way to attract customers.
Practical tips to help your site function better so that people stay on it long enough to buy something or subscribe.
Offering discounts is the OG marketing strategy for subscription ecommerce companies, but Jon MacDonald of The Good says he’s ready for them to step aside for new methods.
It’s not that discounts have no value. They do, but they’re not the only strategy anymore. Especially when you offer them before the customer even has the opportunity to look at your site.
When we interviewed Jon, he said, “if there are two things I could eliminate from the internet, one of them is email popups.” He points out that they often create false leads because “they work for collecting emails, but the quality of emails is pretty poor.”
He even goes on to say that you’re actually hurting your brand by including discount popups. You may think it’s a nice offer to nudge people to conversion, but it can imply that your product isn’t worth what you charge.
“Once someone knows they can get 20% off the next order, they never want to pay 100% again,” Jon says. Katharine isn’t a big fan of popups either, stating that they’re not worth the hit you take from Google and that they “focus on the wrong KPIs.”
“Once someone knows they can get 20% off the next order, they never want to pay 100% again,” Jon says.
While discounts can create an incentive for customers to start the subscription, Jon MacDonald provides other creative solutions that won’t leave you stuck with always having to take 10-20% off the product:
For Jon, the key is looking for ways to add something to the purchase rather than to subtract something.
Jon MacDonald explains that when consumers come to your site, they want to know if you can help solve their pain or need. If the answer is yes, they want to know how they can convert.
But they don’t give you a ton of time to answer these questions. They’ll skim quickly and make assumptions. And according to Jon, they get their information from a surprising source:
The navigation bar.
“Consumers use navigation items to understand what you sell and what you’re going to solve for them.” So if your navigation bar is unclear, your product will be, too. He says a lot of navigation bars focus more on the brand than the customer. They invite the visitor with a call to action like “shop” or “bundle and save,” but they don’t actually say anything about what they sell or the problem they solve.
Jon MacDonald helps his clients optimize their sites for conversion by getting them to think like a shopper when creating their navigation bars:
These quick changes make it easier for your customer to find the answers to questions they’re looking for more quickly, leading to more conversions.
Most subscription ecommerce businesses share these goals: 1) Get customers through the door and try the product. 2) Get them to subscribe. 3) Get them to buy more or add more subscriptions. 4) Get them to tell their friends how great your product is and get your more subscribers (who, hopefully, go through the same flow).
Going from one step to the next isn’t always easy. You have to keep customers and subscribers engaged with and excited by your brand. Those goals can be tricky to measure, but you can tell you aren’t accomplishing them if you notice issues like:
The worst-case scenario is that your subscribers get bored and move on to another brand.
Psst! You might want to check out these core subscription metrics merchants should track.
One of the best ways to continually delight customers with their purchases is to offer strategic recommendations. Katherine McKee says these can make your customers feel “loved and cherished.”
Good data is at the center of this, according to Katherine. You have to be able to suggest options that will intrigue the subscriber if you want to build that trust with them. Otherwise, they’ll just ignore your recommendations (you know you’ve gotten bad product recommendations before and can relate: “why would they think I’d want to buy this?”).
“You should be in a feedback loop with your consumer’s behavior on what they want and that is what you should be adding to these experiences,” she says. “You can’t do that until you have clear data.”
Jon McDonald says that timing also plays a role in this and suggests offering subscription upsells combined with a renewal notice.
Another expert we spoke to, Brandon Amoroso of Electriq, discussed how merchants should be more thoughtful with their loyalty programs. He suggested ditching the points systems so many brands rely on and focusing more on offering truly meaningful rewards, like heavy discounts or free items for customers with high LTVs.
This can be achieved by changing the upsell discounts in that renwal email (also known as an upcoming charge or shipping soon notification) based on a Shopify tag indicating the LTV tier a subscriber belongs to.
Regardless of where you offer them, strong recommendations and exclusive perks that reward loyalty can help boost lifetime value and help you retain customers for longer periods.
By the way: ARPU makes it easy to customize your shipping soon emails with 1-click upsells and easy delays. You can trigger upsell offers by subscription product, renewal count, Shopify tags, or all 3.
The subscribers you’ve won over want your product. But they don’t want more than they actually need.
One challenge subscription ecommerce businesses face is getting their delivery sizes and timing just right. You have to find the right balance to ensure customers get what they need, when they need it.
A person can only store or use so much protein powder, vitamins, dog food, or whatever subscription product you offer.
Sending out a pound of coffee every week, for instance, might be too much for some.
If you’re not making it easy to delay or adjust subscriptions, you’re taking the risk that a subscriber will resort to canceling to stop the flow. At best, you can try to win them back when they want the product again. At worst, you lost a customer that actually liked what you offered and just needed a little less of it.
The best and easiest way to solve this problem is by offering flexible subscriptions that let your subscribers pause or delay their shipments.
At ARPU, we’ve seen how our delay option has allowed our top merchants the ability to retain over 80% of the subscribers who chose to pause their orders. Instead of losing them, they were able to hold on by simply moving the delivery date a few weeks.
Delays also give your subscribers more control and better experiences, which can help you build trust and relationships with them.
Learn how Jimmy Joy cut “too much product” churn in half with easy delays.
Conversion and retention can feel like mysteries, but they don’t have to. With good data, solid strategies, and the right tools in place, you can encourage your subscribers to stick with your brand. Audit their experience and make improvements one at a time until you’re satisfied (hint: chances are this will be ongoing, never complete, and that’s ok).
Each expert quoted in this article spoke at length about these challenges and others on Subscription Ecommerce Live. You can find each episode and others or even tune in for a live event here. Looking to tackle numbers 5 and 6 from this article? At ARPU, we’re obsessed with helping merchants increase AOV, improve LTV, and reduce churn by providing the ultimate subscription experience. Learn how we can help your brand.