7 Strategies to Increase Subscription Revenues via Email Marketing for DTC Brands

Subscriptions aren't simply about selling products – they're about building a loyal customer base . And in the competitive landscape of eCommerce and direct-to-consumer brands, subscription-based models offer a pathway to driving predictable revenue and enhancing customer loyalty. Leveraging email marketing effectively can significantly bolster subscription revenues. 

Here are some tactics we recommend. 

1. Convert More Customers into Subscribers

Picture this: you're browsing through your favorite online store, eyeing that irresistible product. Suddenly, a pop-up appears, offering you exclusive discounts, free shipping, and even surprise gifts if you join the subscription club! It's like being invited to a secret society of savings right from the product page itself!

So what can be done?

• For first time buyers, focus on delighting the customer with the product experience. 
• Once they have become repeat customers, focus on enhancing LTV with Auto-ship’ or ‘Subscribe & Save’ options on the customer portal.
• Offer incentives such as exclusive discounts on initial orders, free shipping, or freebies with subsequent purchases. 
• Incorporate intuitive widgets on the product detail page. 
  

2. Increase Average Order Value through Upselling 

Utilize email marketing to educate your target audience - provides a great way to upsell complementary products or higher-value bundles to existing subscribers. 

Some tips: 

• Offer monthly deals or tiered discounts on the customer portal to encourage subscribers to add more items to their orders. 
• Segment customers based on their purchase history and preferences to personalize upselling efforts effectively.
• Set up a one-click upsell after checkout.
  

3. Reactivate Dormant Subscribers
   Reactivation is an often ignored piece of revenue generation. Reactivation is sometimes a lot cheaper than acquisition - however it needs a personal touch and that is where one to one emails or cohort based emails come in. 

• Identify and segment dormant subscribers based on their past interactions and reasons for cancellation. 
• Personalize your messaging according to the customer segment. Brainstorm new ways of segmenting. For example, segment by what’s in their cart. 
• Launch targeted email reactivation campaigns with time-bound incentives or exclusive offers
• Send triggered emails, such as the ones sent after cart abandonment. 

Triggering reactivation campaigns is easy with Loop. Divided into 6 easy steps

Reactivating campaigns through Loop is a breeze, streamlined into six simple steps:

Step 1: Choose the desired action type from the following options:

• Update payment method
• Reactivate subscription
• Add product
• Resume subscription

Step 2: Assign a distinctive name to the action, serving as a prefix for generating a non-editable action key. This key is pivotal for referencing the action link in notifications dispatched via Loop or third-party platforms like Klaviyo. For instance:

Action name: Reactivation campaign

Action key (non-editable): quickAction_reactivationCampaign

Step 3: Specify the subscription events where you wish to deploy this quick action link. The generated action key will be embedded within the selected event payloads, ensuring seamless integration.

Step 1: Select the type of action you want to create from the below options:

• Update payment method
• Reactivate subscription
• Add product
• Resume subscription
  

Step 2: Enter an action name which will be used as a prefix to generate a non-editable action key which will be used to refer to the action link in the notifications sent via Loop or 3rd party apps like Klaviyo. For example,

Action name: Reactivation campaign

Action key(non-editable): quickAction_reactivationCampaign

Step 3: Select subscription events where you want this quick action link to be available. The action key generated will be available in the selected event payloads. 🙂

4. Gamify the Subscription Experience 

Implement gamification techniques to incentivize subscribers to increase their order value. Emailing is an excellent channel to stay in constant touch and communicate the benefits of the products that you’re offering - Offer escalating discounts or rewards for adding more products to their subscriptions. Well structured email campaigns can be created to communicate these gamified offers and keep subscribers engaged with interactive content.

Tips: 

• Share the upcoming rewards waiting for the customer after their next order.
• Offer tiered discounts i.e. $10 off when customers spend over $50, $30 off when they spend over $100
• Instead of sharing direct offers, create gamified rewards for shoppers.
• Always ensure every email has just one goal. 
  

5. Reduce Churn with Proactive Engagement

Ah, the dreaded churn - a surefire way of losing revenue - but what if you could reduce churn via smart engagement. proactive engagement! With targeted email flows and personalized incentives, one can convince subscribers to hang in there- reignite their passion for your products. It's like saving the day, one subscription at a time!

FYI: 

Loop allows you complete control over editing email templates via HTML, enabling you to tailor your email alerts sent to customers. Simply click on any of the blue hyperlinks on the Email Notification page to initiate the process. This action will prompt a new page, showcasing an HTML code editor. Personalize your emails by utilizing Email variables, adding a personalized touch to your communication.

Some hygiene checks to prevent churn: 

• Avoid falling into the trap of using spam words in your emails. Nothing makes customers churn faster. 
• Cross-sell a product different from their usual products to keep things interesting. 
• Pushing the same campaign might increase the unsubscribe rate. Mix it up with the types of campaigns: loyalty, re-engagement, flash sales and limited time offers, referral campaigns etc.
  

6. Offer Tailored Subscription Bundles

Emails are a smart way to promote bundles. You can also nudge the customer through the upsell section of the customer portal. Tailor subscription offerings to cater to different customer preferences and needs. Experiment with various subscription types, including prepaid plans, trial subscriptions, and customizable bundle options.

•  Highlight the value proposition of each subscription tier through email campaigns to entice customers to upgrade or try new offerings.
• One product contributes more than 30% to the GMV. Start by pairing it with other products. 
• Offer personalized bundles through box subscriptions, and shoot for an even higher upsell. 
• Bundles take some time to show results. Run experiments and A/B tests.
  

7.  Streamline Subscription Management

Subscription management goes beyond inventory and operations management. There is still room to go the extra mile and delight the customer. Simplify the subscription management process for customers by offering intuitive tools and features within the customer portal. 

• Enable subscribers to easily modify their orders, skip deliveries, or update payment details. This can be easily done with Loop’s no-code customer portal. 
• Utilize emails to keep customers informed about shipping updates. 
• Reduce friction points that may lead to cancellations.
• The mobile UI must be optimized and top-notch. Most D2C consumers shop on their mobile devices. 
• Send pro-active notifications in cases of failed card payments.

By implementing these strategies and leveraging the power of email marketing, DTC brands can optimize subscription revenues, foster stronger customer relationships, and drive sustainable growth in an increasingly competitive market landscape.

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