Subscription-based e-commerce is a popular sales strategy used by many major brands internationally. By using a subscription system for products or services, a business can develop recurring sales revenue and build lasting customer relationships.
From selling superfoods to software, the success of your e-commerce subscription business is driven your customer retention rate. However, with subscriptions come cancellations. It has been proven that having recurring customers is far more cost-effective than constantly acquiring a new customer base; therefore you have to utilize a customer engagement platform that can not only save people at the point of cancellation but also prevent them from reaching that point in the first place.
Redfast has been a game-changer for our customer retention efforts. With their expert guidance, we've experienced an immediate impact in preventing churn and reactivating subscriptions. Thank you, Redfast! Redfast's Guides feature has proven to be a transformative tool in our efforts to boost user retention. It has enabled us to launch step-by-step campaigns that optimize user behavior for engagement.
Sarah Hoffman
Senior Director, Growth Marketing
Redfast has been a great partner to our streaming business. Using their tools, we are seeing a 12% uplift in saving users with billing issues and 9% lift in saving users who intend to cancel. They held our hand throughout the set-up process but also taught us how to use the tools so that we can now launch new prompts, create A/B tests, and update existing prompts by ourselves. The tool is great, but the partnership with the Redfast team is what really tips the scale. I highly recommend using Redfast for your Lifecycle/Retention needs.
Kim P
Senior Director, Engagement
By using our platform, our existing clients have seen an average 16-25% increase in customer retention through preventing subscription cancellations. The way we do this is by intercepting the cancel click with either a survey or dynamic save offer. At the point of cancellation, either of the following will be implemented:
The customer will receive a dynamic save offer contingent on the customer’s lifetime value or other attributes
A cancellation survey will be presented, with a conditional offer dependent on the survey response
By using our ecommerce marketing automation platform, we have seen fewer cancellations, a chance to re-engage wavering customers and the opportunity to address and mitigate technical or content issues for our clients.
When it comes to creating a prompt that aren't perceived as valuable (not annoying) by end users , personalization is key. Using Redfast, prompts can be personalized with the customer’s name and personalized based on their use of your service.
The prompt is dynamic and uses a combination of lifetime value and other quantifying metrics to create dynamic offers (for example, offering 50% off next month’s subscription fee by not cancelling.)
And with our 1-click technology, the customer is connected directly to your billing and backend systems to make the payment without being redirected, ensuring a convenient and simple process for the customer and a conversion rate that is 2x higher than traditional methods. This is a proven strategy in successfully preventing subscription cancellations.
We have worked with many clients in various sectors who have utilized our services to maximize their customer retention by using our expertise. However, with our premium feature you can access fully managed cancel-save, upsell, engagement and acquisition campaigns.
Here is a brief overview of how this works:
Here is a brief overview of how this works:
You choose the prompts for cancel-save, upsell, feature adoption, content promotion or custom use case.
From here, the Redfast team utilize their experience in running prompts for 100 million MAU’s in order to design, target and configure your company’s use case.
At this point, you can preview our work by experiencing your prompt in a production environment, which replicates how an end user would experience it.
And another cool thing – we launch with A-B testing. This means that our team of experts will conduct statistical analysis on your behalf. We do this by using a control group, baseline prompt and variant to achieve the best possible outcomes for your use case.
From this point, we provide daily optimization by conducting ongoing evaluations of targeting, triggers, design and CTA in order to generate the best outcomes for your company.
per month
If you have any queries about subscription-based e-commerce, or how we can develop your customer retention strategies, don’t hesitate to get in touch with our team of experts.
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