PYMNTS and sticky.io publishes report on “How Retail Subscription Merchants Can Win and Retain High LTV Customers,” based on a survey of nearly 2,100 customers examining the relationship between loyal customers and merchant revenues and the best practices to expand this lucrative group of customers.
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GLOPYMNTS and sticky.io publishes report on “How Retail Subscription Merchants Can Win and Retain High LTV Customers,” based on a survey of nearly 2,100 customers examining the relationship between loyal customers and merchant revenues and the best practices to expand this lucrative group of customers.
The study reveals that loyal customers constitute 30% of consumers and serve as the foundation of retail subscription commerce. These loyal customers have a high lifetime value (LTV), spending an average of $65 per month on their subscriptions and maintaining them for an average of 30 months, resulting in an estimated LTV exceeding $2,500.
The survey identifies three key customer segments: loyalists, persuadables, and short-timers, with loyalists contributing to nearly 80% of revenues, underscoring their significance to providers.
The study also uncovers the top five reasons that could lead loyal subscribers to cancel their subscriptions, including discontinuation of free shipping, reluctance to refund disliked products, excessive promotional materials, automatic subscription renewals without customer consent, and inadequate customer service.
To attract and retain these loyal customers, retail subscription merchants must address these concerns and prioritize offering essential features that are highly valued by this customer segment. The top three features that loyalists consider most important include guarantees or refunds, the ability to modify product selections, and the option to pause services. By providing these features, merchants can differentiate themselves from competitors and enhance overall customer satisfaction.
Furthermore, providers that empower subscribers to make adjustments to their subscriptions, such as pausing services or changing product selections, can not only attract more loyal customers but also increase sales.
In conclusion, securing the loyalty of customers is crucial for retail subscription merchants seeking to secure a substantial portion of their revenue. By comprehending the preferences and demands of these customers, offering essential features, and delivering a positive customer experience, retail subscription merchants can successfully attract and retain high LTV customers.
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Source: PYMNTS and sticky.io
