The Ins and Outs of Using Shopify Recharge Subscriptions
You have a 70% chance of converting one of your existing one-off customers into a subscriber. Why would you do that? There are a few reasons:
- Subscribers have a greater LTV
- Consumers want ease, free delivery, and instant gratification
- Recurring revenue businesses achieve greater valuations
By 2023, three-quarters of all DTC businesses will offer subscriptions. If you don’t want to miss out, you need to find a subscription billing solution for your Shopify store ASAP. Your best bet? Recharge Subscriptions. Let’s explain why!
What Is Recharge Subscriptions?
Recharge is a recurring payments app that you can use to sell subscription billing-based products and services through your Shopify or Shopify Plus store. With over 15,000 customers in more than 180 countries, with upwards of 740 positive reviews, Recharge Subscriptions is one of the most popular Shopify apps of 2021. They’re even trusted by brands like Colgate, PetSmart, and Harry’s.
Simply install the app into your Shopify store and add a custom subscription option on your product pages and checkout page. Still iffy about taking the leap? No worries — let’s go through some of the top reasons you’d want to incorporate Recharge Subscriptions into your Shopify store.
Why You Should Use Recharge Subscriptions
Increased LTV
Lifetime value (LTV) refers to the revenue a customer provides to a business throughout their relationship. Companies selling high-ticket products (furniture, appliances, etc.) typically aren’t too concerned about lengthening customer relationships — LTV is already high. But if you sell consumables (like razor blades, coffee grinds, toothpaste, etc.), your company has a lot to earn by ensuring a greater lifetime value via recurring payments.
Recharge helps you increase lifetime value by offering customizable billing options, flexible subscriptions, and a seamless user experience.
The Ins and Outs of Using Shopify Recharge Subscriptions
Customer loyalty is a moat unlike any other — it’s why there are typically thousand-person lines outside of Apple stores and why new Air Jordans sell out almost immediately after they drop.
With Recharge, your customers modify and customize their subscriptions to best suit them. They make it easy, whether that means rescheduling a delivery, skipping one, or swapping deliveries. They’ve even found that retention techniques like these can increase lifetime value by 30%.
Boosted average order value
Recharge lets your customers buy subscription products and one-time products together in the same cart. Now integrated directly with Shopify checkout, your customers can mix and match products as they’d like.
That could mean adding a one-off purchase to their recurring order, or exchanging one subscription item for a higher ticket one. Overall, you can expect to see a larger AOV post-Recharge.
Tools That Recharge Subscriptions Offers
Recharge offers a variety of tools for customizing subscriptions and boosting customer loyalty. Here are some of their most important ones:
Customer portal & RechargeSMS
Your buyers can control, edit, and manage their subscriptions via Recharge’s customer portal. The customer portal is also an opportunity to upsell — crafted the right way, you can optimize the portal to increase AOV. Looking for other mediums? Customers can also use the RechargeSMS service to make changes to their subscription by text.
Merchant portal
The Recharge merchant portal is the perfect tool to deepen customer loyalty and relationships. You can use the portal to handle customer subscriptions, create subscription-specific discounts, and access subscription history and changes. Using that last feature, you can modify your strategy and business offerings to better fit your customer needs.
Unified checkout
Like we mentioned earlier, Recharge now integrates directly with Shopify. Subscription and customer management are all handled by Recharge, while Shopify takes care of the order processing. This means that there’s no change in friction during your checkout process, and your customer experience stays seamless.
You can start implementing some (or all) of these features via one of Recharge’s plans:
- Standard: No monthly fees, 1% + $0.10 per transaction. Get the basics in quickly and start selling subscriptions.
- Pro: $300/month, 1% + $0.19 per transaction. Take advantage of data-driven insights and total customizations.
Grow Your eCommerce Subscriptions Business Today with Flaym
If your Shopify store has loyal customers, a strong brand, and products that people keep coming back for, you need to consider Recharge Subscriptions. You can boost customer LTV, grow your average order value, and develop long-term loyalty with your buyers.
Curious to learn more about leveraging loyalty programs, subscriptions, and branding to help your Shopify store grow? Reach out to the experts here at Flaym, or check out more of our blog posts!
Frequently Asked Questions
How does Recharge work with Shopify Payments?
Recharge allows for three payment processors: Stripe, Braintree, and Authorize.net. However, you cannot use Shopify Payments if you are using Recharge Checkout on Shopify.
How much is the Recharge app?
Under the Standard plan, Recharge has no monthly fees but it will take 1% + $0.10 of every transaction. The Pro plan is $300 monthly with a 1% + $0.19 transaction fee.
Is Recharge Subscriptions safe?
Yes! Parent company Recharge Payments follows the universally accepted Payment Card Industry Data Security Standards — guidelines that ensure professional encryption and best practices for any company handling consumer data.
