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E-Commerce

What is Subscription Model?

Automatic recurring delivery to the customer (weekly or monthly) — common in beauty, food and supplements.

Detailed definition

Subscriptions raise LTV by 3-5x. Recharge is the most widely used solution on Shopify. Customers are steered towards subscribing with a discount offer (15-25%). Pausing and cancelling must be easy (otherwise you invite a backlash). It works very well for skincare, food, pet, supplement and coffee brands.

Examples

  • At a beauty brand, the 30% of customers on a subscription account for 40%+ of revenue.

Related terms

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