What pandemics did for many businesses was turn crises into opportunities. A new emerging trend was propelling for merchants in the subscription domain. In the quest to stay safe and get the benefits of convenience and comfort, subscribers flock to recurring offerings.

Despite new challenges, merchants observed a healthy spike in subscriber loyalty, improving retention and providing stability for them.

For your Shopify subscription box business, as you find opportunities to establish long-term relationships, human connections matter. This requires you to prioritize careful relationships with empathy for your subscribers. As a result, you can find continued growth in Shopify LTV and AOV.

This powerful capability can be well in line with your objectives to reach the expected ARR. Annual recurring revenue in the subscription ecosystem provides a standard benchmark to measure your performance in a year and help set up your target for customer retention strategy and revenue generation.

ARR is a complicated term in the subscription model. Knowing annual recurring revenue to uncover efficient ways to maximize its capabilities allows you cost savings and powerful subscriber relations. Read our blog “Understanding Annual Recurring Revenue in Shopify subscription box business” that highlights key points to feed your quest to grow and scale with Shopify subscription recurring order management.

As LTV improves, so does the ARR. Consider Shopify CLTV in a way so that your subscribers find you caring and continue the partnership to deliver long-term customer retention. Here’s the way for you.

Before we move forward to discover fantastic ways to maximize customer lifetime value in the Shopify subscription ecosystem, let’s take a quick view into CLTV.

Shopify CLTV  

Customer lifetime value defines what value a customer is predicted to generate over time. More specifically, CLTV gives insights into the prediction of net profit a customer can contribute to the subscription profit funnel.  

CLTV and its relation with repeat customers

If your subscription business needs to scale, revenue generation is critical with ARR staying on top of mind. Rather than spending on acquiring new customers, focusing on existing customers reaps promising outcomes for the annual subscription or monthly subscription portfolio.

 A recent finding by Recharge stated that subscriptions go hand-in-hand with existing customers. Many top brands experienced an influx of recurring orders due to deeper subscriber loyalty towards their existing brands, increasing customer lifetime value. Overall, all verticals saw 89% year-over-year growth in their MRR and ARR (Annual recurring revenue) figure for 2021.

Keep in mind that repeat customers or existing subscribers are 300% more likely to buy from you. Increasing the LTV for your Shopify subscribers pays off in the long run. 

1. Deliver omnichannel customer support

Shopify subscription CLTV hinges upon omnichannel customer support to improve ARR

Customer service support integration is a vital part of keeping your subscribers satisfied and making your CLTV fool-proof. To prioritize your efforts into avoiding any opportunities for customer engagement and issue resolution, the omnichannel customer plays a significant role.

An advanced customer support integration must include:

  • Email support
  • Chatbots
  • Social media support
  • Phone support
20% of merchants from verticals like Beauty & Personal care, Pets & Animals, and Health & Wellness increased the adoption of customer support integration. Also, consider automating your customer support to handle the scale in customer grievances.

2. Build a strong loyalty program 

Shopify subscription loyalty program to improve ARR

The best retention strategy is cultivating longer relationships with your existing customers. Start a loyalty program. With the ability to incentivize your customers, you can double their eagerness to spend more on recurring offerings and new product experiments. Design your loyalty program by offering discounts and other benefits. They include, 

tick mark icon  Point-based reward system 

tick mark icon  Recurring rewards

tick mark icon  Tier-based programs  

tick mark icon  Community programs

tick mark icon  Cashback programs

Based on your subscription model, you can also have the flexibility to customize your loyalty offerings.

Shopify subscription loyalty program support  

HulkApps has a partnership with the industry’s leading technology partners to make loyalty program management more seamless and flexible for your Shopify subscription business. Seek their help for the best-in-class integration support as well as customization for increased customer engagement.  

Get in touch now

3. Welcome customer feedback 

Customer churn may be expected at any point in time. Depending on several factors, subscriber needs and satisfaction levels may change and evolve. It is important that you keep tracking these factors and pivot your strategy at different intervals. 

Solicit feedback through emails or form submissions. Live chat is another effective solution to discover and solve customer grievances. This way, you can reduce churn and keep them coming back to you.

4. Make recurring orders management easy

Allowing your customers to manage their subscription portal reduces churn. Instead of pushing them to drive away from recurring orders, enable them to skip an order or reschedule it. 

From managing their delivery address to skipping the next shipment, customer convenience and experience wins at the end of the day. 

Design a recurring customer portal that is intuitive and easy to use for your subscribers.

5. Incite your subscribers with offers 

Adding value to your customers’ journey keeps them coming back to you again and again. There are so many things you can do to incentivize your subscribers, making them feel valued and intrigue them to purchase from you. Some of the standard offers that prove exciting for your subscribers include 

  • Exclusive product access 
  • Early product access
  • Special discounts 
  • Free shipping. 

Give your subscribers exciting opportunities to pay for the recurring subscriptions they often plan for but skip due to budget constraints. Often, these ARR boosting strategies work for your annual subscription growth. 

Conclusion

With better strategies to improve Shopify CLTV for your recurring orders, it ensures brand loyalty and stability. Customer retention works better with your plan, making it seamless to keep your subscribers satisfied with your product offerings and pull in more recurring orders sales. Overall, the CLTV Shopify kicks off the engine for ARR to beef up and keep your recurring business healthy. 

At HulkApps, we are dedicated to making your Shopify subscription management easy and profitable by helping you enable as many critical operations as possible to work for specific subscription offerings. We offer extensive subscription management services including,

To make your future subscription growth powerful and resilient, get in touch with us. We are a top-tier Shopify partner agency that fuels your mission-critical business objectives.