Why Increasing Subscription AOV is Crucial

For subscription businesses, increasing subscription AOV is one of the most effective ways to boost revenue without acquiring new customers. Subscription models benefit from recurring orders, but if each order doesn’t add enough value, it can lead to slow growth and limited profitability.

When you can successfully increase subscription AOV, you’re essentially making the most of each customer, which ultimately leads to faster break-even points and more sustainable growth. The good news is that upsell offers are a proven method for raising AOV while enhancing the customer experience.

Types of Upsell Offers for Increasing Subscription AOV

Bundling and Add-ons:
Bundling and add-ons are highly effective strategies for increasing subscription AOV by offering additional value to customers. By grouping complementary products together at a discount, brands create an irresistible offer that enhances the perceived value of the subscription. For example, a customer subscribing to a monthly skincare regimen may be encouraged to add a bundle that includes complementary items, such as a moisturizer or serum, which amplify the benefits of the primary product.

Why This Works for Brands:

• Increase AOV: By offering additional products at a perceived discount, you increase the total value of each customer’s order.
• Enhance the Customer Experience: Customers are delighted by receiving complementary products that improve their initial purchase, fostering a more holistic and enriching experience.
• Promote Retention and Loyalty: When customers perceive they are receiving exceptional value, they are more likely to remain loyal to your subscription service.

Checkout Upsell:
The checkout stage represents an opportune moment to present bundling or add-on offers. At this point, customers are already in a purchasing mindset, which makes it a natural progression to offer complementary products that align with their order. When these items are offered as part of a value-driven bundle or at a preferential price, customers are more inclined to accept the upsell, thereby increasing AOV.

Customer Portal Upsell:
In the customer portal, brands have the opportunity to offer tailored product recommendations based on the subscriber’s preferences and purchase history. For instance, a customer who regularly purchases a specific type of tea could be presented with a curated offer for a complementary teapot or premium infuser balls. By ensuring that offers are both relevant and personalized, the customer portal enhances the overall subscription experience, encouraging customers to add additional value to their subscription with minimal effort.

Tiered Upgrades:
The subscription upgrade feature allows customers to effortlessly transition to a higher-tier subscription, which offers additional value. This could include larger quantities of the product, increased delivery frequency, or added perks such as expedited shipping or exclusive access to new products. For example, a customer subscribed to a 1-month plan could opt for a 3-month plan that not only provides enhanced value but also offers benefits like free shipping or access to exclusive products.

Why This Works for Brands:

• Increase Revenue Per Subscriber: Offering premium subscription tiers that include additional features or benefits encourages customers to spend more while still receiving valuable returns.
• Drive Customer Loyalty: Tiered plans lock in longer-term commitments, helping to foster stronger, more lasting customer relationships and creating opportunities for sustained revenue generation.
• Enhance the Customer Experience: Customers value the flexibility to upgrade to a superior subscription option, which enhances their sense of satisfaction and engagement with the brand.

Checkout Upsell:
At checkout, customers can be presented with an easily accessible option to upgrade to a higher-tier subscription. By clearly communicating the added benefits of the upgrade, customers perceive the decision as a natural next step, with a slight increase in cost yielding significant additional value.

Customer Portal Upsell:
The customer portal serves as a seamless interface for presenting subscription upgrade options, allowing customers to easily compare their current plan with enhanced alternatives. For instance, a subscriber on a 1-month plan for vitamins could be presented with the opportunity to upgrade to a 3-month plan, which includes additional perks such as exclusive content or complimentary products. This frictionless upgrade experience empowers customers to make more valuable choices for themselves, while simultaneously fostering greater retention.

Cross-sells and Upsells:
Cross-sells and upsells are two of the most effective strategies for driving subscription revenue. Cross-selling involves recommending complementary products that enhance the customer’s experience, while upselling encourages customers to opt for a higher-tier subscription or a more expensive product.

Why This Works for Brands:

• Boost Subscription Value: By presenting customers with relevant, high-value products that complement their existing subscription, you increase AOV without detracting from the customer experience.
• Enhance Lifetime Value (LTV): Cross-sells and upsells drive additional revenue from existing customers, increasing their overall lifetime value to the brand.
• Deliver Personalization: Tailored recommendations based on a customer’s past purchasing behavior create a more personalized, engaging experience that deepens the relationship between the brand and the customer.

Checkout Upsell:
During checkout, customers are in a decision-making state, making it an ideal time to present upsell or cross-sell offers. By highlighting relevant products that align with their current purchase, brands increase the likelihood of customers adding extra items to their cart, thereby boosting AOV.

Customer Portal Upsell:
The customer portal offers continued opportunities to showcase personalized cross-sell and upsell offers. For example, a customer who subscribes to a facial serum could be presented with an offer for a matching moisturizer that complements the serum. By presenting these tailored recommendations within the customer portal, the experience remains personalized and relevant, ensuring that customers remain engaged with their subscription while increasing AOV and LTV over time.

How to Implement Subscription Upsell Strategies on Shopify

Implementing upsell strategies on Shopify requires careful planning and the right tools. Shopify apps like Loop Subscriptions enable easy integration of upsell offers, letting you provide tailored suggestions to customers based on their subscription type and preferences. Here’s how to get started:

1. Choose the Right Upsell Method:
   Decide on which upsell strategies (bundles, tiered upgrades, cross-sells, etc.) best align with your brand’s offerings.
2. Integrate Upsell Apps:
   Use Shopify apps like Loop Subscriptions to automate upsell offers and personalize the customer experience.
3. Use Customer Data:
   Leverage your customer data to offer the right upsells at the right time. This can include customer purchase history, previous interactions, and subscription behavior.
4. Test and Optimize:
   Implement A/B tests to see which upsell offers perform best. Track conversion rates and AOV increases to identify the most effective strategies.

Best Practices to Maximize Subscription AOV

To make the most of upsell opportunities, follow these best practices:

• Personalize the Upsell: Tailor your upsell offers based on customer behavior, preferences, and their subscription history. Personalized recommendations increase the likelihood of conversion.
• Offer Clear Value: Ensure that customers understand the value of the upsell. Whether it's a premium subscription or product bundle, emphasize how it benefits them.
• Don’t Overwhelm the Customer: Limit the number of upsell offers per customer. Too many options can lead to decision fatigue and cart abandonment.
• Timing Matters: Introduce upsell offers at the right time in the customer journey. For example, offer add-ons in the cart or tier upgrades during checkout to maximize impact.

Retention-Focused Upselling for Long-Term Growth

While upselling can boost immediate revenue, it’s essential that upsell offers are designed with long-term retention in mind. Simply getting more money from customers upfront is not enough — you need to ensure that they continue to find value in their subscription over time.

Upselling should not just be about maximizing the initial order, but about building a relationship with the customer that grows over time. This is where platforms like Loop Subscriptions excel, offering features such as retention-focused upsells, personalized customer portals, and ongoing engagement strategies that make upselling part of a larger strategy for sustained growth.

Integrating Your Upsell Offers with Shopify Subscriptions

To truly maximize the impact of your upsell offers, integrate them within your subscription flow. Tools that help automate and personalize upsells based on customer behavior ensure that each offer aligns with the customer’s journey.

By combining Shopify’s native tools with strategic upsell strategies, you can create an upsell experience that feels natural and adds value to the customer’s subscription.

Conclusion

To increase subscription AOV, the key lies in offering the right upsell at the right moment. Whether through bundling, tier upgrades, or cross-sells, upselling can dramatically increase revenue from existing customers. Focus on personalization, timing, and value to drive meaningful upsells that not only boost AOV but also contribute to long-term subscription growth.

Ready to take your upsell strategy to the next level? Book a demo to see how retention-first platforms can help you optimize upsell offers for increased subscription revenue.

FAQ

Q: How can I increase subscription revenue with upsell offers?
A: Offer personalized upsell suggestions that align with the customer’s subscription preferences. Use strategies like bundles, tier upgrades, and cross-sells at the right touchpoints to maximize AOV.

Q: What’s the best method for upselling on Shopify?
A: Loop Subscriptions offers automated upsell flows that integrate directly into your subscription experience. Personalize offers based on customer behavior and optimize for long-term retention.

Q: How do I ensure that upselling doesn’t lead to churn?
A: Focus on retention-driven upsells that add value to the customer’s long-term experience. Ensure that the upsell is aligned with their subscription service and enhance the experience with onboarding and ongoing engagement.