Advanced Subscription Experiences for Today’s Consumers

Imagine if subscriptions had a headliner—Netflix would likely be center stage. Yet, this concept goes back much further than streaming. Think back to the days when milk and newspapers arrived regularly at doorsteps. That was the essence of early subscriptions, long before the term became mainstream.

Fast forward to today, and subscriptions have come a long way. No longer just about convenience, they now offer customization and choice. With the subscription economy projected to reach $1.5 trillion by 2025, brands are poised for a major shift. As the standard "subscribe & save" model becomes a consumer expectation, merchants are designing bold subscription services that not only differentiate their brand but deepen customer loyalty—moving performance metrics in the right direction.

From Products to Experiences

To stand out in today’s market, brands must move beyond product-centric thinking. They need to engage with the psychology, habits, and lifestyles of their audience—a strategic path to truly resonating with consumers.

Subscriptions are often seen as a quick and convenient solution—a universal option that many brand have adopted. But today’s customers expect more than just products; they want a personalized service and experience they can champion.

Ordergroove’s research shows that subscription models offering elements of novelty, personalization, and exclusivity can drive up customer lifetime value (LTV) and reduce churn. By creating immersive, valuable experiences, these models foster loyalty and encourage repeat purchases.

For greater insight, Avex collaborated with Ordergroove in a Commerce Quarterly feature to explore advanced subscription models and the impactful results brands experience by adopting them.

Advanced Subscription Models

Prepaid Subscriptions: Taking subscriptions up a notch, prepaid models enable customers to pay in advance for multiple shipments. This approach often results in higher discounts, reducing customer acquisition costs (CAC) and boosting customer lifetime value (LTV). For instance, La Colombe saw a 40% rise in orders with prepaid subscriptions, while Shinesty reported double the LTV for these subscribers.

Build-Your-Own Bundles (BYOB): BYOB subscriptions give customers control over each item in their multi-product orders, creating a tailored experience that prevents the fatigue common with one-size-fits-all options. This personalized approach enhances retention by meeting individual tastes; KIND Snacks, for example, saw a 24% lift in average order value (AOV) through mix-and-match bundles.

Rotating Clubs: Offering a touch of novelty, rotating clubs deliver fresh, unique products with every shipment, keeping the subscription exciting. Stumptown Coffee’s curated club sends members premium selections and rich content, providing an exclusive VIP feel.

Membership Programs: Membership subscription programs add value through exclusive access, VIP perks, and premium content, building a sense of exclusivity and fostering loyalty, especially useful for products purchased less frequently.

Guided Selling and Quizzes: Using guided selling and interactive quizzes, brands can customize the subscription journey to meet individual customer needs, enhancing the shopping experience and gathering valuable data to shape future interactions.

Omni-channel and In-Store Subscriptions: Advanced subscriptions bridge online and offline channels, with options like in-store subscriptions that allow customers to subscribe or pick up orders nearby, creating a seamless integration of their online and in-store experiences.

The push for subscription innovation is accelerating, signaling a turning point for advanced models across the market. These models offer powerful benefits, driving brands to compete vigorously to set new benchmarks. This momentum has led to a wave of enhancements and ambitious explorations into new concepts.

While some brands expand their appeal with diverse subscription options, indsutry-leading brands are blending advanced features to create impactful experiences that connect with consumers. Embracing adaptable technologies, these brands are responding to shifting demands and advancing the next wave of subscription innovation.

Breaking Free from Technology Constraints

As brands jump into the subscription race, many find themselves held back by rigid technologies that limit innovation. Traditional subscription apps, often lacking flexible APIs and robust features, struggle to support the demands of complex subscription models. This leaves brands confined to basic offerings that fall short of their vision and their customers' needs.

Enterprising brands are now embracing advanced, adaptable subscription technologies, such as Ordergroove, to break through these barriers. These solutions integrate effortlessly with eCommerce platforms, enhance data management, and enable personalized, dynamic subscription experiences. Perhaps most importantly, they streamline operations, freeing up valuable development resources to drive innovation and craft tailored solutions on top of a flexible tech stack.

Ending Notes

The days of convenience-only subscriptions are behind us. Today, forward-thinking brands are leading a new wave of subscription models, reshaping customer loyalty and driving significant growth.

Leveraging flexible technology, they’re powering advanced subscriptions that foster innovation and deliver personalized offers with lasting appeal. By staying agile and responsive, these brands not only boost profitability but also build lasting connections in an evolving subscription landscape.

Ready to explore how Avex partners with Ordergroove to develop subscription models that go beyond the basics? Discover our unique approach to designing and optimizing experiences that keep customers coming back. Contact us today to learn more.