Churned Customer Analysis
Next, take a look at churned customers. Set up a cancellation capture survey to understand why subscribers are leaving if you're existing survey data doesn't deliver the insights you need.
Depending on the frequency of response, these reasons for churn could be addressed prior to subscribing or in the ‘onboarding’ process through an email flow.
Analyze points of churn to understand at what point a subscriber is most likely to churn. Perhaps it’s after one order, 30 days, etc.
By understanding the point of most likely churn, you can proactively address that by reaching out to the customer a few days prior, or by giving them an incentive to move past that point (free gift, expedited shipping, additional discount, etc).
We Won't Forget About One-Time Purchasers
On the other side of the business, one time purchasers can be treated as potential subscribers.
Think of ways you can use the momentum from the initial purchase to move a one-time customer into a subscriber.
For example, a very simple post-purchase quiz could be used to recommend a product but also to establish a potential reorder sequence. One primary question could be toward consumption - i.e. how often do you eat/use/consume ‘x’?
The answer to this question could inform a personalized reorder sequence - the reorder reminder email could be sent "2 days + shipping time" before they run out.
As part of this flow, you could offer free expedited shipping to make sure the purchaser receives their next order prior to falling back on their previous habit.
Subscription products are quite popular and can help reduce the need of always acquiring new customers.
Optimizing Your Subscription Product Sales
Subscription products rely on customers establishing a habit around the product. Without habit formation, a user is much more likely to fall back to using their previous solution. Either a competitor, substitute, or nothing.
Let’s take a look at a few ways you can help to instill habits around your product.
If you collect SMS, set up a specific post-delivery flow to encourage habit formation. For the first 3 days following order delivery, send an SMS as a reminder to encourage the user to make a habit of using the product.
For example, if you sell a multivitamin, send a text at the same time in the morning to remind the purchaser to take the vitamin. Reinforce the value and activate the user. Helping purchasers establish the habit is a way to help prevent churn and increase LTV.
Be sure to give users the option to opt out of this flow without opting out of all SMS.
If your product is a consumable that requires any prep, think of ways you can build in ‘cues’ to use your product.
For example, if it’s a protein shake, meal replacement, or even a meal (cereal, shake, etc), think about including a fridge magnet to serve as a daily reminder.
As a bonus, you could include a QR code (back from the brink of extinction) to make reordering as simple as possible and available right when someone pours their last bowl of cereal.