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DTC industry is growing rapidly, brands operating with subscription models are looking for new ways to grow their brand sustainably. For DTC brands that have been in the subscription model industry for few years, the stakes are especially higher. They have already overcome many hurdles like achieving product-market fit, scaling customer base or maintaining solid retention rates. But as the brand grows, the complexity also multiplies.
Scaling a subscription-based business requires understand of customer behaviour on a granular level, optimizing retention strategies, and maximizing LTV of every subscriber. This is where Advanced Subscription Analytics Come into play.
This blog summarises the benefits of advanced subscription analytics, why it’s indispensable for growing eCommerce brands and how you can leverage it to for your revenue growth.
Unlinke retail businesses that reply on one-time transactions, Subscription-based businesses are rather complex. Brands need to build a long-term relationship with their customers. The goal isnt just to acquire a customer once but to keep them coming back every month.
As these challenges are unique in their own way one-size-fits-all analytics won’t cut it anymore. This is where advanced subscription analytics steps in.
Let’s explore the key benefits that advanced subscription analytics can offer your DTC brand.
Subscribers aren’t just numbers they are real people with unique behaviour, preferences and pain points. Advanced subscription analytics allows you to understand customer profiles based on historical data and behavioural insights.
These can include:
These insights enable you to segment your customers more precisely and deliver targeted personalized experience that increases customer satisfaction and retention.
For Example, You can identify why certain customer’s engagement is dropping and then offer tailored solution. It is possible that some user may benefit or engage with a personalised product recommendation but some will need a discounted offer to continue the subscription.
What this means for your brand:
With Advanced analytics, you can offer a highly personalized journey for your subscribers improving retention significantly and driving revenue growth.
Churn is one of the most feared words in the subscription business industry. The earlier you can predict when a customer is likely to churn, the more likely you can create strategies to reduce it. Basic subscription analytics typically looks at past churn rates, but advanced subscription analytics can give you a trend analysis you to understand your subscriber churn and customer behaviour.
Having advanced subscription analytics is having the ability to identify subscribers who are likely to churn before hand based on their behaviour or pattern, it could be skipped deliveries, card declines or even reduced engagement with your marketing campaigns. Advanced subscription analytics helps you take action like:
What this means for your brand:
Advanced subscription analytics provides you with the ability to act before your subscribers churn. You can create strategies to effectively retain them, minimizing churn and increasing your customer lifetime value.
Along with Churn management, revenue forecasting is crucial for scaling any eCommerce brand, and in a subscription-based model, it's more complex. You have to understand new customer acquisition, paused subscriptions, and churn.
Advanced subscription analytics platforms enable you to understand accurate revenue forecast by various accounts into consideration such as:
This allows you to calculate your cash flow with much greater accuracy and allocate your resources accordingly. With the right advanced subscription analytics you will be able to focus on retention efforts, optimize pricing and create marketing campaigns.
What this means for your brand:
With the revenue forecast, you can optimize your brands financial planning and make informed growth decisions.
Advanced subscription analytics allows you to experiment with different subscription pricing models, monitor results in real-time and define your pricing based on actual customer behaviour. Advanced subscription analytics can help you identify which products and pricing tiers are underperforming and what upgrades or features resonates most with your valued customers.
Advanced subscription analysis can also help you to:
What this means for your brand:
It creates a win-win situation for both your brands and customers if the pricing is dialed in using data. You can maximize your brands revenue without alienating price-sensitive products, and deliver more value to your customers at the same time.
Advanced subscription analytics allows you to calculate LTV by customer segments, providing insights into which subscriber groups are worth investing in for upselling, or for running retention campaigns on high churn subscribers. You can create strategies to nurture your high-value customers while reducing acquisition costs on lower value segments. Understand the LTV of your customer is essential for deterjmining how to spend on acquisition, retention and product development.
What this means for your brand:
With these insights, you can focus your efforts in growing the LTV of your best customers. This makes sure your resources are used efficiently and are driving profitable growth.
Advanced subscription analytics can help you improve your internal operations, from inventory management to marketing campaigns. Analytics allows you to streamline processes and allocate your resources wisely.
For example, knowing why customers skin or delay orders can help you with your inventory strategy, similarly creating marketing campaigns targeting at risk subscribers can help you retain them. Having a real-time data on subscription performance help your team in streamlining the operations.
What this means for your brand:
Advanced analytics ensures that your internal operations are streamlined and are as optimized as your customer experience, allowing you ro scale faster without wasting valuable resources.
At this point, you must be thinking, “I need to get started with Advanced subscription analytics! But how do I start?”
Here are some of the steps to integrate advanced subscription analytics into your eCommerce brands.
For eCommerce brands generate 7 figures in revenue, growth just doesn’t come from acquiring more customers- it comes from maximizing the value of every customer relationship. Advanced subscription analytics could be your gateway to unlocking this potential.
By levaging insights, churn analysis, improving operational efficiency, advanced analytics can help you build a scalable, sustainable business model.
Now is the time to invest in advanced subscription analytics and watch your revenue soar.
Emma Johnson is celebrated for her strategic brilliance and innovative flair. By seamlessly blending creativity with data-driven insights, she has propelled Loop’s brand to new heights, establishing it as a formidable force in the Shopify Subscriptions space.
