7 Strategies to Improve Shopify Customer & Subscriber Retention

Using Subscription & Loyalty to Boost Shopify Customer Retention

Subscription programs are a great business model for many Shopify brands to consider as they scale to improve customer retention and boost overall LTV. Subscription-based loyalty programs and rewards also help to build long-term loyalty from customers who believe in your products and brand and are the most likely to repurchase. 

If your brand does not currently utilize subscriptions on your Shopify storefront, no need to worry – the Stay AI retention and subscription experts have you covered.

Building a successful subscription program requires three important elements: 

1. Acquiring new subscribers
2. Retaining those subscribers
3. Learning from cancellation surveys to improve retention 

In this article, we’ll unpack valuable retention strategies to help your brand stand out among a sea of competitors, offering ways to boost your Shopify customer retention by converting new sign-ups, keeping them happy (and loyal!), and reducing churn.  

Before We Begin: Let’s Talk Loyalty

Building ongoing allegiance from your customers requires a well-tuned strategy. Subscription loyalty programs provide the perfect range of incentives to help you win new customers and keep the ones you have. No wonder 79% of US consumers say that loyalty programs influence their decision to keep buying from a brand.

It’s also important to remember that building a loyal subscriber base is no easy task. While subscription programs are popular, not every program is built the same – nor do they see the same level of success.

Your long-term customers are your brand’s most vocal cheerleaders, and that translates into a recipe to scale. This is because retaining customers is more cost-efficient than acquiring new customers. In fact, increasing customer retention rates by 5% can yield anywhere from 25% to 95% in increased profits.

That said, working closely to convert these customers into subscribers is your brand’s best bet to boost retention and LTV at scale.

Let’s unpack how to reduce subscription churn with seven solid strategies from our retention playbook:

7 Subscription Loyalty Strategies to Boost Your Shopify Customer Retention

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1. Provide a Great Welcome Offer

A customer needs to sign up before you can think of converting them to a loyal subscriber. They say you never get a second chance to make a first impression; ensure that impression makes a positive, lasting impact by offering a special incentive to new subscribers. 

There are numerous ways to get creative with welcome offers, but they all share an important element: ensuring your new subscribers know they are uniquely valued and appreciated. This tone sets the stage for a fruitful long-term relationship that positively impacts AOV and LTV. You can offer a free gift-with-purchase (GWP), let them choose from a selection of items, or go the BOGO route—the options are virtually limitless.

2. Send a Personalized Surprise

Loyal followers like to feel connected to the brands they support. Reinforce that every subscriber matters by surprising them with a unique gift. 

Maybe it’s a coffee mug or T-shirt with their name printed on it or a coupon inspired by their previous purchases. When you take the time to offer an individualized “thank you” to subscribers, it goes a long way to retaining them for a lifetime.

3. Use Email and SMS to Keep the Lines of Communication Open

Email and SMS are both effective means of connecting with customers. Newsletters, special offers, exciting events, or big announcements can entice your customers to stay connected to you over these touchpoints. 

4. Offer Free and Expedited Shipping

Free shipping is a major incentive in eCommerce. In fact, 68.2% of all online consumers are more likely to purchase a product when you offer free delivery. This is a great way to increase your chances of converting new subscribers while keeping those you already have.

Additional benefits—like expedited shipping—give you an edge over your competitors.

5. Build a Strong Community

People love to show their support for a brand they believe in, and building a vibrant online community encourages those actions. Companies that effectively create a strong online community enjoy organic word-of-mouth growth. When companies are strategic about growing an online community, over 75% of online content generated about their brand is user-generated. 

A community of subscribers sharing their positive experiences, connecting with each other, and reaching out with questions and advice is a powerful way to maintain loyalty.

A strong community gives you valuable insight into likes, dislikes, cultural and social trends, ideas for improvements in products and services, and even ideas for future releases.

6. Provide an Easy-to-Use User Experience

Sometimes, your subscribers want to fine-tune their customer settings. When your customer portal is super easy to navigate and lets users customize features and settings, it reinforces that they made a wise decision in supporting your brand.

Learn how Stay makes it easy to set up a user-friendly customer portal personalized to your subscribers. Give them upsells and personalized offers, and surround them with your brand’s colors, logos, and more.

7. Let Subscribers Build Their Own Bundles

What makes bundling so effective is the perception of value. When you bundle several items, customers feel like they’re getting a sweet deal, even if the discount isn’t massive. It’s all about the perception of saving, which can be even more enticing than the actual dollar amount saved.

Fixed bundles are great, especially when customers are new to your brand and trying to understand what products are the best for them. But with build-your-own bundles, shoppers call the shots and pick exactly what they want – whether that be size, flavor, or delivery cadence. The more shoppers can customize, the happier they’ll be — and much less likely to churn.

For more detailed tips on building an effective subscription retention strategy, check out our guide on subscription retention strategy tips.

PS – Shameless plug: Stay lets you offer custom bundles to your customers. You can easily set up custom tiered subscriptions or let them pick and choose individual products for their subscription. Problem solved!

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How Can You Use AI to Test and Validate Your Subscription Loyalty Strategies?

AI can automatically analyze what works best in your subscription program by running A/B tests to compare strategies and messages, optimizing your program based on winning results. 

Stay AI uses artificial intelligence to continuously optimize and improve customer retention and flow performance, provide you with “smart” dunning, and give you the tools you need to win back lapsed subscribers. By better understanding the reasons behind customer and subscriber churn, you can effectively build a retention strategy based on actionable data.

Keep More Customers with Stay AI

Discover how Stay helps you customize every subscriber’s experience, keep them engaged, and reduce cancellations—while our powerful AI analytics give you the data you need to scale.

Stay is so much more than a subscription app. Consider it your platform for generating revenue and retaining subscribers. You’ll have more time in your workday to focus on the bigger picture, while your customers enjoy the best experience possible.

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