It’s clear that subscription models have a purpose to play in driving growth and building customer loyalty. You see it all the time with popular companies like Netflix, and even platforms like Instagram, which rolled out fan subscriptions in 2022 as another way for creators to monetize their content. Recurring revenue is in, especially in a high-cost acquisition economy.
Ecommerce brands are no different, and with Shopify releasing their native subscriptions app, even more players have been introduced to the world of subscriptions as a way to unlock predictable, recurring revenue.
But what about brands that are growing beyond the simple subscribe-and-save subscription model? Apart from their native offering, the Shopify App store houses a variety of subscription apps that enable businesses to create and manage smarter subscription experiences.
This post explores real-life success stories of businesses leveraging Shopify subscription apps to achieve remarkable growth, providing insights into how these tools can transform ecommerce operations and maximize sustainable growth with recurring revenue.
Key takeaways
- Shopify subscription apps provide flexibility, seamless integration, and enhanced customer experiences to drive recurring revenue.
- Success comes from offering varied subscription options, personalizing customer interactions, and consistently communicating value.
- Continuous monitoring and optimization are crucial for maximizing the benefits of subscription models and achieving sustainable growth.
Examples of brands leveraging Shopify subscription apps
One of the most compelling ways to understand the impact of Shopify subscription apps is through real-life examples. Here are four success stories that highlight how these apps have driven ecommerce growth:
- CrunchLabs: a popular STEM-based curated box founded by YouTuber and NASA-engineer-turned-science-evangelist Mark Rober.
- Oats Overnight: a monthly overnight oats subscription box to make breakfast easy and healthy.
- Wildgrain: a subscription service that delivers bake-from-frozen premium bread, pasta, and pastries right to your door.
- LOLA: a subscription to women’s hygiene products made from healthier, cleaner ingredients.
CrunchLabs
The headline: CrunchLabs leverages turnkey Recharge products to create a seamless experience for over 100,000 customers in just six months.
The TLDR: Leveraging Recharge, a Shopify subscription app, CrunchLabs created a seamless experience for over 100,000 subscribers, achieving profitability within six months. Recharge’s turnkey and customizable solutions allowed CrunchLabs to scale rapidly, handle high demand, and provide a unique subscription experience with features like prepaid SKU swapping and a custom customer portal.
This partnership enabled CrunchLabs to focus on delivering innovative products and content, including their successful Camp CrunchLabs program and the new robot-in-a-box Hack Pack subscription. With Recharge’s support, CrunchLabs continues to expand its offerings and inspire STEM education on a massive scale.
Oats Overnight
The headline: Oats Overnight delivers a masterclass in subscription personalization
The TLDR: Since partnering with Recharge in 2016, Oats Overnight has seen a 350% increase in net revenue since 2021, with 90% of their revenue coming from subscriptions. This growth is driven by key features provided by Recharge, such as:
- a customized subscriber portal for easy shipment adjustments
- dynamic bundles for personalized product combinations, and
- advanced analytics to target loyal customers with personalized offers.
These tools have resulted in 152% more recurring orders, 41% longer subscription durations, and 29% less churn, ensuring customers enjoy effortless, delicious breakfasts every morning.
Wildgrain
The headline: Wildgrain reduces churn by 17% with a comprehensive retention strategy
The TLDR: Wildgrain seamlessly integrated with Shopify and utilized Recharge’s robust API to customize their subscription program, allowing them to manage constantly rotating SKUs and offer a curated box experience. Over the last three years, they have utilized Recharge’s Account Management team to gain a strategic advantage, the Affinity customer portal for easy customer account management, and the Bundles feature to offer a “build-a-box” experience personalized to customers’ preferences.
These tools, combined with the Flows feature to encourage additional purchases, have decreased their churn by 17% and increased average active days by nearly a third. With over 40,000 subscribers, Wildgrain’s partnership with Recharge has driven significant ecommerce growth by enhancing customer flexibility and improving retention.
LOLA
The headline: LOLA prevents 23% of cancellations with Cancellation Prevention
The TLDR: With Recharge’s Cancellation Prevention feature, LOLA was able to present targeted offers to customers attempting to cancel their subscriptions, A/B test these offers, and continually refine their approach based on detailed analytics. This initiative saved 23% of attempted cancellations, contributing to an overall 22% reduction in churn compared to the previous year. By leveraging Recharge’s no-code solution and robust data insights, LOLA effectively optimized their retention strategy, ensuring high customer satisfaction and sustained business growth.
Success speaks for itself
From creating seamless subscription experiences to implementing advanced personalization and retention strategies, these companies have shown how powerful subscription apps can be in scaling business operations and achieving sustainable growth. Whether it’s through customizable customer portals, dynamic product bundling, or innovative retention tactics, the possibilities with Shopify subscription apps are vast, making them a crucial tool for modern ecommerce success in 2024 and beyond.
