Comparing Loop with?
Today, brands need to do more than just sell stuff, they must create systems to build customer loyalty, generate steady income, and support growth over time.
One of the best ways to hit all three targets? Subscriptions.
From monthly boxes picked just for you to auto-refills of things you need at home, subscriptions have become a key business approach for Shopify stores. This post breaks down the plans, types, and tools used to set up a top-notch subscription program on Shopify, using ideas shared in Scott Austin's Shopify Solutions Podcast (Ep. 156).
Let's look at the big picture. Why are so many brands across industries are jumping on the subscription bandwagon?
One of the main advantages of subscriptions is the income you can count on. Regular shopify eCommerce businesses often rely on unpredictable, campaign-driven sales cycles. But subscription-based income allows you:
Picture running a business where you know that 60% of your next month's earnings are already locked in through active subscribers. This financial stability can help cut down reliance on paid ads or seasonal sales to reach your targets.
Subscriptions naturally extend the duration of your relationship with each customer. Rather than a single $50 purchase, a customer might stay signed up for 6–12 months, spending $300–$600 during that time. More importantly, subscribers often:
This boost in customer lifetime value means you can put more money into getting new customers at the start and still make a profit.
Having a subscription program gives you insight for planning related to demand forecasting. Being aware of the number of product shipments set for the week or month marks a significant advantage in:
It allows them to retain lower operational costs while improving the customers experience.
Subscribers feel a greater connection towards brands that they consistently engage with. By sending tailored emails, special deals, VIP benefits, and giving them priority for new products, you can cultivate this connection over time.
The result? A community of brand advocates who stick around longer and engage more frequently.
Not all subscriptions are created equal. Choosing the right model depends on your products, customer behavior, and brand strategy. Below are the three main types:
These are ideal for consumable things customers use regularly and need to restock.
Examples:
The goal is convenience. The customer gets what they need without thinking about reordering every month.
Benefits:
These offer variety and discovery. You send a hand-picked selection of items, often centred around a theme.
Examples:
Benefits:
However, curation boxes do come with higher fulfilment complexity and may see higher churn if novelty wears off.
This model unlocks access to exclusive content, products, or experiences.
Examples:
Benefits:
Successfully running a subscription program requires more than just adding a “subscribe” button to your product page. Here’s what it takes to get it right:
Shopify requires apps to handle recurring billing due to security and compliance reasons. Leading options include:
These platforms let you manage renewals, offer “skip/pause” flexibility, build workflows for upsells, and customize your subscriber experience.
A clunky subscription flow = higher drop-off.
Make sure your subscription options are:
Pro tip: Offer incentives like 10% off when you subscribe, or a free gift after 3 renewals to increase conversion.
Keeping subscribers informed reduces churn. Send emails for:
Good communication builds trust and turns subscribers into superfans.
Focus on key subscription metrics like:
Use this data to experiment with pricing, cadence, and offers. For example, if churn spikes at month 3, you might test a loyalty perk that kicks in at month 2.5.
Before jumping in, ask yourself some critical questions:
Subscriptions work best when:
If you sell custom furniture or wedding dresses, not so much. But if you're in beauty, food, wellness, or pet care, you're in a prime spot.
Subscriptions add operational complexity. You'll need to:
Make sure you have processes (and subscription software) in place before scaling too fast.
People stick around for value, not just convenience. Ask:
The more emotional or experiential value you can layer in, the better your retention.
Consider running surveys or interviews to learn how often customers want to reorder. This helps tailor delivery frequency and minimize churn from subscription fatigue.
The eCommerce industry is changing dramatically. The best brands are focusing more on retention because of increasing ad costs, CAC difficulties, and growing competition. In terms of maintaining relationships and maximizing customer value, subscriptions are one of the most powerful tools available not to mention the revenue they bring.
This is not something that is easy to achieve. The best subscription programs are purposeful. They combine customer behaviour, operational efficiency, and a brand’s evolving vision into one cohesive flow.
If you are new to this or looking to enhance your current program, keep in mind this core principle: it’s not a feature, but rather a transformative tool that drives growth.
Want help building a high-performance subscription strategy for your Shopify store? Loop Subscriptions is built to help brands like yours scale with customizable widgets, advanced analytics, and hands-on support.
