Subscription touchpoints create upsell opportunities
Subscription touchpoints create upsell opportunities
A subscription business model provides a regular and natural cadence of interactions with customers. Each of these "touchpoints"—whether it's a monthly delivery, a weekly newsletter, or a login to a software platform—is an opportunity to strengthen the customer relationship and sell more.
Unlike a one-time transaction, where the relationship often ends at the point of sale, a subscription creates an ongoing dialogue. This allows a business to:
- Build Trust and Demonstrate Value: With each successful delivery or positive interaction, the customer's trust in the brand grows.
- Understand Customer Needs: The ongoing relationship provides insights into what the customer values, making it easier to offer relevant additional products or services.
- Make Relevant Offers: Upsell opportunities feel natural and helpful rather than like a cold sales pitch.
For example:
- BirchBox: Subscribers who receive a monthly box of cosmetic samples are regularly introduced to new products. A significant percentage of them go on to purchase full-size versions of the products they liked from the BirchBox e-commerce store. The monthly box is a marketing channel for the store.
- H.Bloom: A hotel with a weekly flower subscription might easily add a special, one-time order for a holiday or event. The existing relationship and billing information make this a frictionless transaction.
These regular touchpoints are a key part of why subscriptions increase customer lifetime value. The initial subscription is just the beginning of the economic relationship, not the end of it.