Subscription models have become an essential strategy for brands looking to build a loyal customer base while generating recurring revenue. Whether you’re a startup or an established brand, finding the right incentives to attract and retain subscribers is crucial.
In this post, we’ll explore four creative incentives that can help grow your monthly subscriber base, with real-world examples from successful brands like Hello Bello, Gainful, CrunchLabs, and Blueland. By the end, you’ll have a better understanding of how to leverage these strategies to elevate your subscription model.
Key takeaways
- Exclusive access builds subscriber value by offering unique perks, like Hello Bello’s seasonal diaper designs, which create urgency and boost subscriptions, leading to higher GMV.
- Personalization strengthens loyalty, as seen with Gainful’s expert advice, fostering community, reducing churn, and encouraging long-term engagement.
- Aligning incentives with brand values encourages growth, with Blueland’s sustainability focus turning subscribers into brand evangelists, driving word-of-mouth expansion.
The rise of subscription models in ecommerce: Why they matter more than ever
Subscription models are gaining traction in the ecommerce world for good reason. They offer a steady stream of revenue, foster customer loyalty, and provide valuable insights into consumer behavior.
With the global ecommerce market booming, brands that embrace subscription models are positioned to reap significant benefits. However, with increasing competition, it’s essential to stand out by offering compelling incentives that encourage customers to subscribe.
The top challenges brands face in growing their subscriber bases
Growing a subscriber base is not without its challenges. Common hurdles include customer churn, the need for continuous engagement, and the difficulty of convincing potential subscribers of the value of recurring payments.
To overcome these challenges, brands need to offer unique and attractive incentives that not only draw customers in but also keep them engaged over time.
4 brands using creative incentives to attract and retain subscribers
Incentives are a powerful tool for subscription-based businesses. When used effectively, they can significantly boost subscription rates and reduce churn. Let’s dive into four creative incentive strategies that have proven successful for brands.
Build hype with exclusive access to new products
Hello Bello, a personal care brand specializing in products for infants, offers a diaper subscription bundle that allows customers to customize their orders with diapers, wipes, and other essentials. What sets Hello Bello apart is their use of exclusive, seasonal diaper designs available only to subscribers. This strategy creates a sense of exclusivity and urgency, encouraging customers to subscribe or upgrade their plans to access these unique designs.
By offering exclusive products, Hello Bello not only drives curiosity but also incentivizes customers to commit to a subscription, leading to increased overall gross merchandise volume (GMV).
Hello Bello offers up fun, seasonal and unique diaper designs that can only be purchased as a subscriber.
Build a sense of community through personalized subscriber perks
Gainful, a health and wellness brand, offers personalized nutrition plans that include protein powders, supplements, and hydration products tailored to individual fitness goals. Subscribers receive an additional perk by gaining access to a registered dietitian, making their experience highly personalized and supportive.
Gainful offers their subscribers personalized advice from a registered dietitian, who tailors recommendations to their unique nutrition habits and goals.
By fostering a community of like-minded individuals and offering access to expert advice, Gainful strengthens customer loyalty and reduces churn. Subscribers feel they are part of a supportive network, which enhances their overall experience and commitment to the brand.
Customize the experience with subscription boxes
CrunchLabs provides monthly STEM (Science, Technology, Engineering, and Mathematics) subscription boxes designed by a former NASA engineer. Each box includes hands-on projects that teach kids critical thinking and problem-solving skills in a fun and engaging way.
CrunchLabs offers annual, monthly and quarterly subscription boxes so kids can independently learn engineering and science concepts through hands-on play.
The ability to customize and personalize the subscription box experience is a major draw for customers. By offering a product that is not only educational but also customizable, CrunchLabs has created a unique value proposition that appeals to both parents and children, driving subscription growth.
Build a sense of evangelism and goodwill
Blueland, an eco-friendly cleaning products brand, offers a subscription service that promotes sustainable living. Their products come in reusable bottles with tablets that dissolve in water, reducing plastic waste. Subscribers can customize their shipments and receive refills at a discount.
Blueland practices what they preach, encouraging new subscribers to stay sustainable by providing eco-friendly bottles with new purchases.
Blueland’s incentive strategy ties directly to their brand ethos of sustainability. By offering products that align with their customers’ values, they build a sense of goodwill and evangelism among their subscriber base. This not only attracts environmentally-conscious customers but also encourages them to spread the word about the brand, further driving growth.
How to choose the right incentive strategy for your brand
Choosing the right incentive strategy depends on your brand’s goals, target audience, and product offerings. Consider the following factors when deciding on an incentive strategy:
- Product type: Is your product consumable, like Hello Bello’s diapers, or more experience-based, like CrunchLabs’ STEM boxes?
- Customer values: Does your audience value exclusivity, personalization, community, or sustainability?
- Brand ethos: How can your incentive strategy reinforce your brand’s mission and values?
By aligning your incentive strategy with your brand and customer expectations, you can create a compelling subscription model that drives growth and customer loyalty.
