Enterprise Subscription Growth: How to Leverage Full Customer Journey Analytics in Recharge
In today’s DTC landscape, brands are looking to increase predictable revenue from recurring orders.
Of the various methods to accomplish that, launching a subscription program is one of the most effective. Subscription providers like Recharge offer a low effort, high impact eCommerce solution for increasing customer engagement metrics like retention and customer lifetime value. So, implement, launch, and profit right? Not so fast.
Cracking that code of how to scale your program may not be obvious. Even more mysterious may be how to optimize the program to grow foundational metrics. In order to enable meaningful growth, you’ll need to develop an understanding of three critical user groups: prospective subscribers, active subscribers, and churned subscribers.
That’s where customer journey analytics come in. In this post, we are going to address how to analyze the subscription user at every phase of their journey to inform where to spend your time and money for the most efficient and effective reward.
Before diving in, be sure to check out the first part of this collaborative blog series with our subscriptions partner, Recharge: Enterprise Subscription Growth: How To Leverage Data & Analytics Solutions To Grow Your Business!
What is Customer Journey Analytics and How Does it Relate to a Subscriptions Offering?Customer journey analytics gives brands an understanding of site performance via behavioral measurements, breaking down the fine details of how goal conversions occur. This is done by tagging key elements of your eCommerce storefront to enhance tracking of the shopping funnel and generate additional user events for Google Analytics. Further build-out of Google Tag Manager allows marketers to create qualitative dimensions that help with quantitative analysis of mid-funnel interactions. Tagging created by BVA and deployed via the Google Marketing Platform are combined to reveal unique user behaviors that map the customer journey.
Subscription programs add complexity to mapping the customer journey due to differences in entrances and end-points versus one-time purchases. But with Recharge—our trusted subscription partner—the recurring customer journey can be integrated seamlessly with the tagging and tracking of our first-time visitors and customer acquisition. This has allowed our marketers to capture and integrate data points like “Subscription Landing Page Engagement” and “Subscription Service Requests” into critical decision-making across the shopping funnel.
How to Analyze Your Users at Every Phase of Their Subscription JourneyAs mentioned above, all of your users can be categorized into three significant journey segments:
In this case, our customer journey analysis starts with dissecting the actions of these three segments. Then, applying those learnings to create your efficient, predictable revenue stream.
THE PROSPECT SUBSCRIBERBeing the largest pool of users out of the three segments, it can feel like the easiest to approach. But there are a few questions you should ask yourself with journey analytics to identify methods to measure engagement and increase subscription sign ups.
First take a look at your current subscribers. What was their journey to purchase? Once a prospect turned subscriber landed on your website, how did they go about signing up?
- Did they visit any informational pages prior to subscribing? Were they already a customer?
- What other aspects of your website are your most valuable customers interacting with (i.e. loyalty programs, subscription content, other landing pages)?
- Did they come from a PDP or sign up flow (i.e. a guided selling quiz)?
Next, study the website journey of those who failed to subscribe. We can learn as much from what is working as from what isn’t working. For the prospects who didn’t subscribe, look to the data to these questions:
- Do there appear to be barriers to conversion?
- Where are people falling off from the funnel?
- Are these users finding the information they need about your subscription offering, such as value propositions?
- Are your assets and copy on brand, relevant to the target audience?
Then ask how you can optimize what appears to be working and improve what isn’t working for business.
THE ACTIVE SUBSCRIBERYour active subscribers are your most valuable customers—use journey analytics to retain them for as long as possible. It’s important to understand not only what these users are doing on your site, but how they are interacting with their customer account and secondary marketing. Here are some ways to gather this information, and what to do once you’ve got it.
1. Add tracking to the customer subscription dashboard to see how they are engaging with their account.
- Are there any features that are often used in the dashboard? Can they be optimized to drive additional value?
- Are users looking to interact with the loyalty program? Can it be better integrated with your subscriptions?
2. Use Recharge dashboard to analyze your current subscribers preferred subscription products and frequencies.
- Are users buying one-off products that aren’t currently available in subscription? Or are certain subscription products underperforming that should remain a one-off up-sell?
- Are users unsubscribing from product overload? You may uncover a reason to add a current non-existing subscription frequency (ex. Adding a every 2 month subscription instead of just monthly to prevent users from unsubscribing)
3. Gather what their engagement level is with other channels (email, sms, etc.)
- Based on what they are engaged with, and what they are subscribed to, created segments send targeted offers via their preferred channels
THE CHURNED SUBSCRIBERYour churned subscribers are your high value, low volume user group. It is more cost effective to acquire past subscribers than to acquire new subscribers who have never purchased from your store before. That being said, the churned subscriber pool is significantly smaller. Additionally, churned subscribers may not be happy with you for a variety of reasons (for instance, a customer service mistake), so your mileage with this group may vary. Regardless, these users are valuable in that their actions can reveal ways to keep your active subscriber group from unsubscribing.
Churned subscriber journey analytics can also be a crucial contributor to keeping your active subscribers. For this exercise, you’ll want to leverage the Recharge dashboard and customer service team.
- Identify your churn rate in Recharge. How long into subscriptions is the average user dropping off? Once identified, you can create an automated offer (a free gift or reward) before your active subscribers hit that churn day?
- In Rechage’s dashboard see “cancelation reason” and also consult your customer service team. Uncover common reasons for users unsubscribing and take the appropriate action to prevent those customer losses in the future.
- Consider a survey to churned subscribers to uncover additional intelligence that can be utilized to strengthen your program. If you don’t get enough response, try offering a reward or gift card.
Closing ThoughtsApproaching subscriptions with a focus on these three groups makes it easier to create a data-first foundation that utilizes full journey analytics. Not only will the approach offer a wealth of business intelligence to make decisions that drive the most value, it will support a more complex and effective customer experience.
Once your subscription program is running efficiently, you’ll be able to optimize your acquisition strategy based on improved LTV and make scaling more efficient. Before you know it, your predictive revenue will be giving you the freedom and time to focus on the future of your business.
Want to chat subscriptions? Reach out to us here!