15% of online shoppers sign up for e-commerce subscription services. And its market is set to reach US$ 478 Bn by 2025.
If you, as a store owner, have not implemented the Magento 2 subscription extension, it is time to act and make your customers' life easy.
And what will you get by integrating a subscription extension?
Store profitability & Customer loyalty.
You indeed are interested to learn more now! Right!
Let's dive in.
Subscription management gives a boost to your business ROI, and this blog on Magento 2 subscription management explains exactly how it works.
Subscription is a business model where instead of letting the customer make a one-time purchase, you provide them an opportunity to subscribe to the items you sell. There is an option to choose between varied periods, such as daily, weekly, monthly, or yearly. Subscription payment, also referred to as recurring payment, creates a win-win situation for both the shopper and the store owner.
Magento 2 subscription extension lets your customer buy the product individually or through a subscription plan. Subscription based business model for an eCommerce store has been in trend, and many enterprises that imbibed this model saw phenomenal results.
Here is why it is time to install the Magento 2 subscription and recurring payment extension.
How does subscription management benefit the store?
Subscription targets repeated purchases and this, in turn, boosts sales. It isn't easy to persuade a customer to pay money to buy a product. However, if the customer commits to purchasing the item periodically, then there is nothing like it for your business.
It has been seen that subscription payment lets you increase your business revenue without spending a bomb on advertising. It increases customer retention, which boosts your business profit.
Whether the OTT platforms or your daily grocery shop, all are enticed towards getting repeated customers, and subscription management aid the same.
Forecasts the cash flow
As a store owner, you need to carry out proper finance management. The more accurate your future cash flow forecast is, the better you manage your business. However, we understand it is not an easy task. Predicting how many customers you will visit your online store, how many will convert, and what product will they buy is nearly impossible.
Fortunately, with subscription management, this guesswork can be kept aside. It lets you minimize the rate of error. Using the Magento 2 subscription extension, you get access to future sales data in advance.
Enables provision and inventory controlling
Subscription products allow you to manage your store inventory seamlessly. You gain control overseeing the ordering and storage inventory which is a tedious calculation for any store manager.
Magento 2 subscription lets you gather accurate data about future orders making it easy to record what your customer will buy.
Improves shopping experience
Better client experience translates to more sales and thus an increase in revenue for your store. The Magento 2 subscription management convinces customers to choose you over your competitors. Most marketing campaigns fail because they are unable to create the right customer experience.
What makes the Subscription model a success for eCommerce stores?
Buyers love the Magento 2 subscription because of the following reasons:
- It saves them time. Shoppers may not necessarily like many choices because it consumes time in gathering brand details and in comparison. The subscription model eases this exhaustion.
- It gives customers a respite since they know what they are subscribing to will be received automatically. They are aware that the quantity they need will undoubtedly be met.
- Subscription plans generally are priced a little cheaper than regular products. Price is indeed the top priority. When customers know they are getting the same quality product at a more affordable price, they are happy, which motivates them to subscribe.
- Subscription management lets customers manage their finances as well. They can see what they will spend in the future, which works great for them too.
An overall better shopping experience improves sales and thus business revenue. Subscription plans reduce the likelihood of the buyer switching to a competitor brand.
In a nutshell, the Magento 2 subscription management lets store owners create loyal customers.
What does Magento 2 subscription management aim to achieve?
Adding business value
- Now it is easy to create and manage a flexible subscription plan.
- Maximize product by appending the subscription to a range of products.
- Let the customer purchase any subscription combination and one-off products in the same cart.
- Allows buyers to save on shipping costs by grouping the same-day subscription product delivery in a single order.
- Let customers stay updated on their billing status through email alerts.
- Allows clients to choose their preferred payment method.
- Create and manage the subscription plans.
- Assign the subscription plan to various products.
- Manage the subscription profiles of customers.
- Track each customer's subscription payment.
- Easily cancel the subscription manually in the admin panel.
- Enable or disable any trial subscription.
- Allow clients to select their preferred start date.
- Display the subscription plan through the radio button, drop-down button, or selection box.
For Buyers (users)
- Create and manage their individual subscription plans.
- Suspend, renew or cancel their subscription in the front end of the account dashboard.
- Buy one-off and subscribed products together.
- Set subscription on multiple items.
- Edit subscription and payment info on the move.
- Get configured and tailor-made emails.
- Extend the subscription with just a few clicks.
- Enjoy multiple payment options.
Exclusive features of Aheadworks Advanced Subscription Extension for Magento 2
- The buyer enjoys hassle-free purchasing as they can subscribe to the services and products that they use regularly. It also motivates them to become loyal customers.
- Customers can pause, skip or cancel their subscription as they desire. This is particularly useful if the buyer is going on a long holiday or relocating temporarily. It is hassle-free to cancel a subscription at any time.
- Magento recurring order extension lets buyers manage several subscriptions for varied products at the same time. They can choose different start and end dates for individual products and set any renewal period.
- It is possible to buy a one-time product and a subscription product together. The shopping cart displays the subscription and one-time purchases separately.
- Free shipping for subscribed products motivates the buyers to subscribe.
- Hiding the cancellation limits the opportunity to cancel the subscription plan either for a particular plan or store-wide.
- The extension allows quick subscription configuration by letting the client create a new subscription plan instantly customizing the payment frequency, the subscription period, and many such parameters.
- A separate subscription tab in the Magento 2 extension lets customers keep a tab of their subscribed products.
- It allows merchants to set up a trial subscription period in the backend for free where buyers can try out the product without paying anything. Pre-plan options of pricing based on a percentage of trial or regular price are also available.
- Buyers can subscribe to physical products as well as memberships at the same time.
- Buyers are free to extend any active subscription, extend or update the present running subscription all in one place in the tab “My Subscription.”
- Single order delivery is available for same-day subscriptions.
- Purchasers are free to remove the products disliked, adjust the quantity or change the configuration permanently or for a single order.
- Store-owners can configure the discounts and prices based on the rules of pricing.
- One can get detailed information about the product and the payments.
- Customers get to earn reward points from past or recurring subscriptions and apply them to future subscription orders.
- Subscription can be integrated with email. All a customer needs to do is to add the “Extend Subscription” variable to the transaction email, click the link and send. It saves them from checking out.
- There is even an option to reactivate any past subscription with ease.
Implementing the recurring and subscription payment on your store lets buyers automatically buy the goods based on their subscription. Subscriptions are usually used for water, milk, eggs, pet food, collectibles, etc.
The subscription feature saves consumers from the hassle of going through the entire buying process in your e-commerce store. This is the core reason how subscriptions help in improving the consumer experience.
As an e-commerce store owner, you can get access to low-cost and convenient ways to accept recurring payments. With repetitive purchases, you enjoy regular consumers and thus see an improvement in sales.
The online e-commerce business is increasing, and this has made client acquisition even more difficult. The cost of marketing is escalating, and at times, it takes several months or even years to get constant sales. The crux of any business is to stay in the competition and be profitable.
The secret mantra to achieve this is to increase the CLV or the customer lifetime value. Offering products that are replenishable on subscription at a discounted rate creates loyal customers and simplifies ordering. Once buyers subscribe and like the product and the service, then they usually tend to stay.