Best Practices to Increase LTV Using a Shopify Subscription Loyalty Program

We are all fond of celebration, and for that, we look at metrics like net promoter score, customer satisfaction, and customer effort score. However, one of the essential indicators these days is the customer lifetime value (LTV), demonstrating the strength of client loyalty.

What is Customer Lifetime Value?

Customer LTV approximates the net profit attributable to a customer's overall future interactions. Understanding LTV has grown increasingly important as brands pivot away from a near-term focus on quarterly profitability to a significant factor emphasizing long-term relationships with consumers.

A customer-centric subscription loyalty program increases the growth options.  

Traditionally, many brands focus on meeting quarterly targets - acquiring new customers through premium deals. This strategy isn't bad, but it's a costly mistake because you can acquire the whole world, but what's next? If there is no new thing about your subscription offer, then the whole customer base is shifted to another product that offers like you. Also, your investments in acquiring new customers are anywhere from 5x to 25x more expensive than selling to existing customers. 

Given the statistics, more Shopify stores realize that focusing on the consumer is the key to success in today's market. Customers go to their favorite brands for subscription offers and rewards explicitly tailored to them. And brands that can successfully deliver personalized offers build a stronger, more valued connection with their customers, resulting in increased loyalty and LTV.  Also, brands should allow customers to manage their subscriptions and billing information - subscription dashboard implemented using Shopify subscription API, consistently with their branding and business plan.

Subscription businesses - LTV 

Whether you want a box of chocolates, designer clothes, or oatmeals or noodles or access to the music library, or a tool to help you manage files in the cloud, all you have to do is sign up for a subscription, and you'll have it indefinitely.

Subscription models are not new, but they quickly become the dominant method of delivering practically anything. Customers appreciate the worry-free delivery and access, and companies appreciate the steady income. But what makes Netflix different from the Blue Aprons of the world? To put it another way, what marks a subscription service that retains customers from one that does not?

Building a shopify pause and build - subscription dashboard via Shopify subscription API becomes a top priority when a company depends on recurring revenue from each customer. However, the ideal technique to accomplish this is not clear to everyone. To assist you, we've created this "Increase LTV Using a Subscription Loyalty Program" article to help you drive growth as a subscription business.

Shopify subscription APIs Shopify pause and build - subscription dashboard subscription loyalty programs directly influence the customer's lifetime value in two ways:

1. Improves how much a customer spends with your store.
2. Build a connection where the customers revisit your store and often buy out a product.

Before you go further on implementing subscription loyalty programs using Shopify subscription API, here is what you need to understand

A subscription or premium loyalty program is a paid loyalty program in which clients subscribe and pay an initial fee in exchange for attractive benefits that may be used immediately. The goal is to center the brand's distinctive value proposition on the customer, and also, subscription loyalty programs help build brand equity.

Speaking from the customer viewpoint, customers love the comfort and quick fulfillment of demand, and for that, they are ready to pay the premium price/ buy more subscription products. This itself will assist your Shopify store in maximizing CLV on its own. You can provide premium awards, discount coupons, or special promotions to specific clients with a paid subscription - just like Myntra.

This way up, subscription API Shopify lets you easily incentivize your most loyal consumers to spend more money on your products. Finally, with Shopify pause and build - subscription dashboard, you can easily collect and monitor consumer feedback and behavior to develop future loyalty and customer retention initiatives.

Adding in -you can let us optimize Shopify subscription APIs, giving you extended flexibility to make the checkout experience intuitive for your customers.

Build the extra dollar 

The most popular definition of "loyalty" in eCommerce is the action of repeated purchasing of the same brand from the same store. While customers want to be rewarded for more than just transactions, repeat purchases are critical to growing lifetime value and turning a profit. Loyalty programs frequently achieve repeat sales by using loss aversion and switching costs.

So provide your customers with an exceptional user experience - Shopify pause and build - subscription dashboard and improve your subscription selling strategy to broaden your reach.

What loss aversion?

Usually, what happens is a subscription loyalty program with a time frame that reduces the purchase decision time by instilling a sense of urgency to buy out products with added advantages.

In other words, when you design subscription loyalty programs that offer time-sensitive incentives, discounts, FOMO kicks in, triggering impulse purchases and shortening customer decision time.

In general, a three-foot-long strip of paper coupons at checkout, or the rare 20 percent discount email offer, is no longer enough to promote sales or repeat visits for the majority of customers. Personal relevance, not transactional solicitations, is what today's consumers demand. As a result, marketers must rethink their loyalty programs, and Shopify pause and build - subscription dashboard to establish a more personal connection with their customers.

One classic strategy is to allow your consumers to skip or adjust their subscriptions. We shall provide you with a highly intuitive personalized dashboard, which can be implemented via subscription API Shopify with no additional add-on. HulkApps Shopify experts use Selling Plan APIs to help you manage your subscription plans.

Apart from this, our Shopify Subscription APIs  implementation services completely compliment your subscription infrastructure. With just a click of a mouse, you can control recurring subscriptions with the HulkApps Shopify support team. 

Once the customer starts availing of your loyalty programs implemented via subscription API Shopify, you can quickly strengthen your relationship with them. You can also easily understand their purchase habits, likes, dislikes, motives, and other aspects. You can deliver more relevant offers and rewards that uniquely appeal to each consumer with this information.

Read more: Shopify Cohort Tracking reduces customer churn. 

This customer-centric approach enables brands like yours to utilize 1:1 personalization, resulting in deeper, more meaningful customer ties and a higher lifetime value.

Using HulkApps Custom Subscription Portal lets you add some great functionalities to let you avoid any probabilities of subscription cancellations. So, connect with us and let your customers pause or skip their subscription instead of canceling.

Customer loyalty is mission-critical for subscription services

Aside from the fact that loyal consumers are less expensive to maintain - buy more and spend more frequently; a Shopify pause and build - subscription dashboard loyalty services' profit and growth rely on consistent, recurring revenue from each customer. It's not like an on-demand or brick-and-mortar business, where it's common for customers to leave and return later to spend more money. If a consumer cancels a subscription, their contribution is forfeited. This means that if the financial contribution of the subscriber does not surpass the cost of acquiring them, you will incur a loss (unless you reactivate them).

Recurring losses = Failed business.

Given these facts, the most significant difference between subscription services that thrive and those that fail is how well they can retain committed customers and increase customer lifetime value (LTV). This goal's success can be summed up in a single ratio: 

Customer Lifetime Value(LTV ): Customer Acquisition Cost(CAC ) 

I.e: 

How much profit did you make: How much did you spend to acquire/ retain? / Per customer 

Subscription's loyalty strategy to focus on -

How can you guarantee recurring purchases while preventing users from canceling to switch to the next best service? In other words, how can a subscription service build customer loyalty? 

The solution focuses on reinforcing the right segments of the customer lifecycle – the elements that offer the best chance of converting "users" to paying customers.

To start, you can connect with the HulkApps team to lay out what the ideal customer journey looks like for a subscription service.

Final Thoughts

Regardless of how well you attract customers, each user requires a compelling reason to continue moving through the lifecycle and integrate your subscription into their lives.

However, each business is unique, and the market is continuously changing; I'd want to leave you with some questions to help you examine your customer loyalty program designs: 

• What aspects of the customer journey will be improved due to this? 
• Is this incentive appropriate for the customer's stage of the journey? 
• Is my program involving the customer at every stage of the journey?
• How does this fit your overall (growth, acquisition, and revenue) strategy?

Check out the HulkApps Subscription service package and service if you're ready to begin a customer loyalty and incentive marketing campaign for your subscription business. It is designed to understand all types of subscription businesses and has a continually increasing library of fresh ads, allowing you to focus on developing.