Many ecommerce businesses have adopted the same strategy. With rewards programs, they incentivize customers to spend money, inspire new shoppers to become regular customers, and create strong relationships with these loyal customers.

In this post, we’ll explore the benefits of rewards programs, customer loyalty program examples, and how your business can start a rewards program.

What is a rewards program?

A rewards program is when businesses offer their customers rewards points and the ability to earn other perks. These benefits increase customer loyalty and motivate your customers to spend more with you.

Different types of rewards programs

1. Points program

With a points program, customers earn points for a variety of actions. These actions can include making an account, sharing the brand on social media, or leaving a review. Typically, customers will also earn points for every purchase. You can decide how you reward these points, such as determining the system to award points per dollar.

Then, customers can apply their loyalty points for a variety of rewards, such as a percentage discount, free products, or free shipping. This type of program lets customers earn rewards through multiple earning actions, and gives them autonomy in choosing how to use their loyalty points.

2. Referral program

Often, a major way to earn points in a points program is through referrals. Flywheel marketing is when your customers turn their friends into customers. It’s an organic and effective marketing strategy where people learn about your business through word of mouth.

With referral programs, both the referrer and the referee can earn rewards. Typically, businesses will offer something like, “When your friend signs up, you both get 15% off.” This way, the referrers are motivated to invite their friends, and the new customers get a reward too.

3. Tiered program

With a tiered program, you can actually gamify your customer loyalty program. This is similar to a points program, but it adds in member tiers. With this rewards program, your customers unlock free rewards and exclusive benefits based on their level in the program.

You motivate customers to continuously engage with your loyalty program. With increased engagement and actions, they hit new thresholds that move them into the next tier. Each new tier comes with increased benefits and other rewards.

In new tiers, they can redeem rewards like early access, exclusive offers for new products, or additional point-for-purchase (like 2 points per $1 spent vs. 1 point per $1 spent).

The four benefits of adopting rewards programs for your business

There are many benefits to implementing a customer loyalty program. Overall, they enhance the customer experience and motivate customers to be active with your business.

1. Reward current customers

It’s a known fact that customer acquisition is more expensive than retention, so it’s a good idea to reward your existing customers and keep them satisfied. With rewards programs, you help your most loyal customers feel appreciated and good about supporting your brand. Loyalty programs build strong emotional connections with your customers and incentivize them to keep coming back. With rewards, you can tangibly show your appreciation for customers’ business and also help them save money.

2. Organic marketing opportunities

With a customer rewards program, your customers will be more likely to post about your brand. For example, you can reward them for sharing or reviewing on social media. And, they may even offer their followers their discount code for your brand. Word of mouth is the most powerful marketing play, as people are always more likely to trust something verified by a close friend or person they trust. 

3. Build brand loyalty

In the era of relational commerce, businesses want to create relationships with their customers. With a rewards program, they get to create a two-way street—customers spend money, increase their engagement, or help promote, and the business rewards customers with points and discounts.

4. Exclusive opportunities

There are many products and services that beat out free ones because of the advantages they offer, like no advertisements on a streaming service, or exceptional customer service with a certain credit card. With loyalty programs, you inspire motivation in your customers and give them more than just the product they’re buying. You can gain a competitive advantage by giving great rewards.

3 rewards program examples

1. Bumpin Blends

Bumpin Blends makes superfood smoothie cubes to help manage everyday symptoms, like fatigue and headaches. For their customer reward program, they utilize a points program. Subscribers earn points with every purchase, and can also accumulate even more through referring friends, leaving reviews, or following Bumpin Blends’ social media accounts. Bumpin Blends has four loyalty tiers, and as subscribers advance, they unlock new perks—priority personal concierge, exclusive gifts, and access to taste test new flavors. 

2. LOLA

LOLA, the first lifelong brand for reproductive health, creates products that are transparent and accessible for everyone. As their customer’s trusted reproductive health brand, LOLA offers essential products, like tampons made from 100% organic cotton.

With their customer reward program, LOLA uses a traditional points system and offers customers multiple ways to earn points. Customers can follow their social media accounts, take a survey, or leave a review. When it’s time to redeem points, every 100 points gives them $5 to spend with LOLA.

3. Bokksu

Bokksu is a premium subscription service that delivers a cultural and gourmet journey through Japan. Bokksu rewards members every time they shop, and also grants customers reward points for other actions, like signing up for their mailing list. Additionally, customers get a special birthday reward.

Bokksu has a tiered rewards program. As a customer spends more money, they gain access to exclusive deals. For example, they get early access to new boutique arrivals, earn more points for money spent, and get a larger birthday bonus.

Starting a rewards program

If you’re ready to start your own loyalty program, here’s how to get started.

First, make sure you understand customer behavior. Look at your customer data to see how much money your customers spend, what products they purchase, and how frequently they shop. This can help you decide what type of rewards program to implement and what rewards to offer. It’s especially important to offer them relevant perks—for example, they might care way more about being able to save money with points than getting early access to a sale.

Second, while you want to build an enticing program for your loyalty members, also consider what will attract new customers—for example, they might be attracted to free shipping on their first order. You can offer customers an enhanced customer experience and more relevant perks if you have a solid grasp of customers’ lifestyles. Make sure to set goals as you roll out the customer loyalty program so you can assess how it is performing, and what you may need to change.

Finally, investigate different tools that will help manage loyalty programs. Many Recharge merchants integrate loyalty tools into their tech stack to help automate and optimize their program. A rewards program is a perfect fit for a subscription business, because customers are already making repeat purchases. 

With every dollar spent, they can gain points and unlock new rewards. This will help increase sales, boost customer satisfaction, and overall, support the creation of an authentic relationship. Everyone enjoys being appreciated, and with a rewards program, you can tangibly show your customers you’re thankful for their support, and invested in their experience. 

The post How does a rewards program work for ecommerce? appeared first on Recharge.

In addition to being a marketer, I’m also a consumer, and one of the aspects I enjoy most about my favorite brands is their focus on communication. I usually shop from smaller businesses and genuinely enjoy the creative ways they have fostered relationships. For example, a skincare company I love always includes handwritten notes in packages. But no matter the size of your business, focusing on communication with your customers will lead to stronger relationships, customer retention, and loyalty. 

In this post, I’ll share some of my favorite ways brands can authentically create connections with their customers. 

Let your customers text you  

Bumpin Blends is one of my all-time favorite businesses—they make easy, delicious smoothie cubes to help manage everyday symptoms. (I rely on their Cherry Dreams smoothie more than melatonin when I’m having trouble sleeping!) They also have a fantastic loyalty program—I almost have enough points for a blender. 

Bumpin Blends has a customer portal, so it’s super easy for me to make updates or switch flavors. But, if I ever need some extra support, they have a number I can text for help. When I joined, I got a 24/7 nutritionist who helped answer all my questions and set me up. 

For example, there was a time when I was trying to apply a discount code I received, but it wasn’t working online. I texted the helpline, and my nutritionist instantly fixed it for me. Once I had to go out of town at the last minute and needed to delay a shipment. Since the products are frozen, it was essential for me to be home when they arrived! When I explained the situation to my nutritionist, she rescheduled my shipment for delivery when I’d be home again. I appreciated the personal help so much. Their availability helps me feel better about using their service since I know I can get support anytime I need it! 

A tool like RechargeSMS empowers subscribers to manage their orders with a simple text. These days, most of us do everything from our phones anyway—and with transactional SMS, you can meet your customers where they are. I really appreciate brands that implement this tool because it saves me time and effort. (And, I can never remember my passwords anyway.) 

Build thoughtful content 

I’m as guilty of anyone as having a pile of unread books, but generally, I’m reading at least one! I tend to read books more than I read content from brands, but every now and then, a brand does it so well, I’m compelled to take a break from my latest novel. 

Really successful brands are experts at storytelling. A brand is about more than just the products. In the era of relational commerce, customers want to connect with a greater mission and ethos. One of the best ways to share this is through your brand voice. You’ll use your brand voice in social media, marketing, and even product packaging, but content is a major vehicle for reaching your audience.

Keap Candles makes sustainable scented candles with reusable materials and plastic-free packaging. As a certified B-corporation, they’ve committed to restoring harmony with the planet by being waste-free. The founders, Stephen Tracy and Harry Doull, were inspired to create Keap from their conversations about intention and presence. They encourage people to slow down, connect, and ground themselves through the practice of lighting a candle. And, in addition to their products, they’ve created content to support this experience. 

Keap takes customers on a scent journey throughout the year. Customers receive specially selected candles every month, such as cozy scents in the winter for a respite from the chill. And each candle is also accompanied by an original poem! Keap further explores monthly themes through their seasonal series, which features zines, art, and writing. 

Keap offers more than a quality, sustainable candle. They genuinely communicate with their customers by diving into deep questions, topics, and inquiries. They talk to their customers not as shoppers but as whole humans—as curious and inquisitive people. 

Start a conversation 

If you want to know what your customers need, you can ask them! When a brand is willing to listen to their customers, they develop better products and create a sense of community in the process. 

Blume was founded by two sisters, Bunny and Taran Ghatrora, who wanted to address the stigmas around periods, puberty, and sex education. They envisioned making self-care more accessible and building the next generation a space to learn and grow. They make products for everything from skincare to period care and always use safe, gentle ingredients. 

Blume wanted to offer effective products and real impact—so they went to the people they were hoping to serve. They actually co-created their original launch products with their community by surveying them on what they wanted and needed. When Blume did a podcast with Recharge, they shared how they use an iterative feedback loop with their community—they ask what products their community wants to see next through email and Instagram. Then, they prioritize the feedback into a product launch pipeline and even send samples to community members. 

Blume starts actual conversations with their customers. And, they develop real, lasting connections by listening to their customers’ input and delivering products inspired by mutual creation. 

Effective & empathetic communication 

As someone who has spent a lot of time studying and learning about communication, a few rules have stuck with me. 

1. Listen twice as much as you speak: The exact quote is attributed to the Greek philosopher Epictetus. To me, this says that we all have much to learn from each other, and we can all improve our communication and knowledge by listening more. For brands, this means you need to listen to your customers—from surveys, direct feedback, reviews, or even data. Take the time to hear them before you talk at them. 

2. It’s not what you say, it’s how you say it: Maya Angelou said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” While you should certainly take the time to be deliberate, accurate, and clear in your communication, know that energy and intention are just as important. People will primarily recall the emotional impact of your communication—make sure it’s a positive memory. 

3. Be authentic and transparent: Real relationships are built on honesty. If you want to create genuine connections, be transparent with your customers. For example, let your customers know if something goes wrong, like a shipment delay. Keep them updated on relevant changes and updates. And finally, be true to your brand—develop an authentic voice, and speak to your customers. They are people too, and we all respond to authenticity, integrity, and realness. 

The post Confessions of a consumer: Focus on communication appeared first on Recharge.

In this post, we’ll explore psychological pricing, how it impacts customer behavior, and a few examples of psychological pricing tactics you can start using today. 

What is psychological pricing?

Psychological pricing uses consumer psychology to influence purchasing decisions. Like all aspects of your business, pricing your products involves strategy and consideration. Pricing is a key element in the success of your business and can impact your sales, revenue, and customer satisfaction. 

As a business, pricing is at your discretion. Sure, the materials, ingredients, and production costs all factor in. But making certain modifications can spark a subconscious response in your customer and impact their decision to buy. 

The benefits of using psychological pricing

Pricing your products greatly impacts the health of your business—it affects revenue, customer satisfaction, and reputation. Since psychological pricing is inexpensive to try, most businesses use at least one psychological pricing tactic to determine their prices. At most, you’re usually rounding down prices by a matter of a few cents. Plus, since the strategy drives more sales, you’re actually generating more revenue in the long run. 

Psychological pricing is also easy to implement. You can easily update prices on your site and instantly see the impact. Plus, everyone loves a bargain. You can use psychological pricing to create this satisfaction and happiness for customers, making them more likely to return to your business in the future.   

Finally, you can also use psychological pricing to direct customers’ attention to specific products and services. Psychological pricing can help you acquire new subscribers—you can lower the barrier to entry and get customers in the door by offering them a discounted first month or first order free. 

5 psychological pricing strategies for your business

1. Charm pricing 

This is one of the most popular psychological pricing strategies. Charm pricing reduces a price so it’s expressed as a just-below number. For example, you’ve probably seen items listed at $19.99 or $7.95. Though it’s only a few cents away from the closest dollar amount, consumers find it to be a good deal. 

This is because there is a “left-digit bias” phenomenon. When customers look at a product price, their evaluation is disproportionately influenced by the left-most digit. Therefore, instead of having rounded prices, you should have a slightly lower number–even if it’s just a one-cent difference. 

Research shows that with charm pricing, customers round down to the lower price instead of up. If your product is listed at $399, your customers subconsciously perceive it as $300. 

2. Odd-even pricing 

Similar to charm pricing, customers are also more likely to purchase items with a price ending with an odd number. This psychological pricing tactic also leverages the fact that customers focus more on the ending digits. 

Odd pricing means that a price ends in an odd digit—like $18.87—and even pricing means that it ends in an even digit—like $66.50. Customers interpret odd pricing as a good deal and are more likely to purchase. 

3. Price appearance 

Have you ever been at a restaurant, and noticed entrees listed for $18 instead of $18.00? Price appearance affects how customers feel about a price. $18 seems cheaper than $18.00 because it isn’t as long, even though the actual price is identical. A New York Times article found that even just removing the dollar sign can influence consumer behavior. 

Even though the actual price is exactly the same, customers perceive shorter prices as costing less. So, for your prices to be perceived as cheaper without actually being reduced, remove the dollars and cent places. 

4. Price anchoring 

With price anchoring, you can show that your product is being offered at a discount. For example, you might decide your deodorant subscription costs $20 per month. Then, you can add $25 as the price anchor. This shows the original price as $25, so it looks like it is being offered at a discount. 

This makes customers think that they are getting a better deal—to them, it looks like the subscription is being offered at a discounted price. On your website, you should highlight the new price in comparison to the anchor price. 

You can also use price anchoring to show how much a customer will save for a subscription. Anchor the normal cost in a smaller font, and highlight the new cost, so customers see the price difference and understand that they will get a big discount if they sign up for the subscription option. 

5. Artificial time constraints 

With artificial time constraints, you can create a sense of urgency. For example, retail stores will have an early bird offer or summer clear-out sale for shoppers. You can apply this same example of psychological pricing to your subscription business. 

Sales or events encourage customers to purchase quickly so they don’t miss out on the great savings. You can drive increased customer demand by creating incentives and the need to purchase instantly. 

Incorporating psychological pricing tactics into your business 

Psychological pricing strategies should complement your overall business plan. For example, if your business is focused on providing affordable products, you will want to communicate to customers that they’re getting quality products at a reasonable price. 

High price points can also act as quality signals. We’ve all noticed something expensive, like a $300 face moisturizer, and assumed it was much higher quality than the drugstore brand. People also tend to prefer brand-name products over generic ones, even though they use the exact same ingredients. In other words, people tend to project higher quality onto products that cost more money. 

So, you’ll want to find a balance between encouraging more customers to purchase because they feel they’re saving money, while also trusting in the quality of your products. In other words, you will want consumers to feel they’re getting a bargain, but not a cheap product. 

Psychology 101  

At the end of the day, your customers are people, and their cognition plays an important role in their behavior. The subscription industry is growing rapidly because it caters to elements of human psychology, like convenience, anticipation, and control. 

Leveraging psychological learnings can help you influence your customers, but remember that no one likes to be tricked, or feel like a business is taking advantage of them. Psychological pricing techniques and pricing strategies can attract and retain customers. Harvard professor Gerald Zaltman estimated that 95% of purchasing decisions are made in the subconscious mind. 

Tapping into those patterns and instincts can help you guide and steer your customers—just make sure you do it with consideration for your customers, your business strategy, and your brand reputation. 

The post The secret behind psychological pricing: Subscription boxes appeared first on Recharge.

As a consumer, I’m focused on a few things: ethical production, brand values, and customer experience. I care about what a brand stands for: Do they use sustainable materials? Do they have a greater mission beyond just making money? How do they treat me as a member of the community? 

I’ve been an early adopter for a handful of brands—one of the first customers to catch on to a cool new product—and watched them grow over the years. I’ve stayed loyal to the brands that have continued to nurture our relationship amidst their growth, and valued my business and needs while they scale. From a consumer perspective, here are great measures a brand can take to remember their customers while scaling. 

Recognize the day-ones 

At the end of the day, while your customer base may be rapidly growing, it’s made up of individual people. Though you will naturally lose some customers, it’s a known fact that retention is less expensive and often pays off more than acquisition. While scaling, you should dedicate time and resources to reaching new customers and bringing them into the fold. 

But make sure you’re also allocating equal attention to nurturing the existing relationships.

After all, these people have helped grow your business to its current size. You wouldn’t be at the scaling stage without them! Through communication channels—whether it’s email or a product announcement—take the time to include a thank you. Remind them that they are a crucial part of your success and are valued community members. 

Show how scaling benefits them 

As you start to scale and acquire more profit and employees, you’ll be able to offer improvements. When you were a smaller business, you were probably manually updating orders or handling shipping yourself. When you have more revenue and resources, you can start to invest back into creating an incredible customer experience. 

Share with consumers that the company’s growth is translating into efforts that will improve their experience. For example, you can start to improve the product—better ingredients, higher quality materials, and more rigorous testing. 

And, you can also upgrade the purchase experience. As a consumer, I have different expectations of smaller businesses. I understand that they have fewer hands to help with overhead, and expect longer shipping or response times. However, with larger companies, I expect that they’ll be faster and immediately responsive. 

As you scale, invest in more customer support, like a dedicated chat service, or direct staff to respond quickly to emails. I really appreciate interacting with a real person when possible, and I love brands that offer a text line for me to check in about order updates or changes. Making communication more available will help you stay aware of any complaints or feedback, and let you have a direct line to address customer issues while you’re scaling. 

If you can afford to offer free shipping, this is a huge plus. (We’ve all abandoned a shopping cart after seeing the shipping cost, despite how much we were about to spend on items.) If not completely for free, you can explore options for offering shipping at a discounted rate for subscribers. Look to the areas where you can really tighten and polish the product and the experience—share with your customers that as you grow, you will continue to pour gains back into serving them. 

Loyalty & rewards programs 

If you want a super tangible way to show appreciation for your customers, you can create a loyalty or rewards program. With a loyalty program, you incentivize customers to return and use their rewards, while also demonstrating your thanks for their business. An amazing loyalty program can really help you stand out from competitors and build your brand reputation.

It also really helps you “pay it back” to your customers. With subscriptions, you’re turning one-time transactions into ongoing relationships. Loyalty and rewards programs build bonds, and create connections between the customer and the business. 

As you roll out the rewards program, you could even offer your current customers extra points. You’re setting them up to spend in the future, and showing your gratitude for their early business. 

Keep it fresh 

Though not my primary love language, I always appreciate a surprise gift. It’s an incredibly thoughtful way to show gratitude for your day one customers. Throughout scaling stages, include an extra gift in customer’s shipments, like additional product samples or a new flavor. It’s a perfect way to thank them for their support and demonstrate your continued commitment to them. You could even include a note, which adds a real feeling of personal touch amid company growth. 

Incorporating elements of surprise and delight is essential for keeping your customers. For example, you could start creating more relevant resources based on their needs. Let’s say you’re a business that offers skincare products—you could offer video chat consultations, film tutorials, or design a step-by-step guide for using your products. 

Know that while your customers may love your product, they’re paying attention to more than just the item. As you start to scale, you’ll have more capital and also, more data. With a broader set of customers, you can start to learn more about their needs and wants. Use your additional insights and assets from scaling to continue delivering your customers an exceptional experience. 

Remember the relationship 

As an early customer of brands, I truly cheered them on as I watched them grow. I connected with their stories and was excited to see them share their mission with the world. I felt like I was along for the journey with them, and a key part of their expansion. 

As you look to the horizon for new opportunities and endeavors, don’t forget those that helped get you where you are, right now. Maintain consistent communication, offer exceptional customer support, and surprise them with creative gifts and content. Scaling will come with new challenges, information, and also, more resources. Continue to invest everything you’re gaining back into your community, and you’ll create a perfect circuitry of mutual loyalty, positivity, and growth.

The post Confessions of a consumer: Remember your day-ones as you scale appeared first on Recharge.

Product packaging is a phenomenal opportunity to extend your brand in multiple dimensions, from imagery to values. It’s a blank canvas on which you can continue to write your brand story, strengthening customer relationships and creating an unforgettable experience. Today, we’ll explore the key pieces around product packaging so you can leverage this aspect of your business. 

Product packaging basics 

First, let’s review the different types of packaging available. 

You’ve taken the time to create incredible products with quality materials, and you’re ready to send them off to your eager customers—first things first, you’re going to need to send them in something. For shipping products, you have a few options: 

1. Mailer box 

Mailer boxes offer great protection for your products. They have flaps that secure close, ensuring products don’t fall out in transit. Plus, they’re made with corrugated cardboard, a durable material that prevents the products from being crushed or punctured. 

They’re also very versatile and come in a wide variety of shapes, sizes, colors, and paper types. You can easily customize mailer boxes to match your branding. 

2. Shipper box

For bulkier or heavier items, you might want to use a shipper box. These boxes are also great for fragile products, since you have more space to add protection. 

3. Mailer envelope 

Finally, for small and durable items, you can use a mailer envelope—think razor blade or deodorant stick refills. These envelopes have some padding, so delicate items will still be protected. It’s harder to create an unboxing experience with this shipping option (since they don’t come in a box) but can still make sense based on the product you are providing. 

Creating a unique unboxing experience

Providing customers with an amazing product experience starts with the unboxing moment. Your customers have eagerly been awaiting the arrival of their products, checking the mail and order updates every day. When the box shows up on their doorstep, the anticipation has already been brewing. 

If you’ve ever had this experience—opening a box to discover colorful tissue paper, a cleverly written insert, or a personalized card—you know the difference it can make. In fact, unboxing videos are an entire genre on YouTube. Google reports that the amount of time people spend watching unboxing videos just on their phone is equivalent to watching “Love Actually” 20 million times. Clearly, there is a phenomenon around that imminent moment of excitement and the delight that follows. 

Think about your overall brand—your story, product, and values—and weave these pieces into the unboxing experience. For example, LitJoy Crate makes collections of books and accessories for fans. As a brand focused on the power of storytelling, they bring this mission to their boxing. Their boxes are decorated based on the items inside, so subscribers get a preview before even opening the box—like a prelude to a story, of sorts. Inside, they find their items placed in paper confetti, arranged to give an overview of all the goodies inside, like a table of contents. 

Let’s dive into all the ways to create this unique unboxing experience for your subscription customers.

1. Presentation 

You want your customer to feel delight and excitement from the moment they open the box—and that starts with presentation. Think about charcuterie boards, and how they’re arranged with aesthetic craft and intention. It’s said that we eat with our eyes first, and seeing food arranged so artfully prepares us to enjoy it even more. Despite being just as delicious, it wouldn’t quite look the same if everything was just thrown on the plate.  

You can use dividers to separate products and inserts to add more space. This allows the viewer to take in the spread with more ease, visually. Additionally, it serves to highlight the different components in a package. For example, Bite’s box has a placement area for their toothpaste bits jar so it captures the main focus. Then, they arrange the brush and floss alongside. 

2. Social media sharing

One of the best ways to spread the word about your brand is through flywheel marketing. This is a process in which your customers turn their friends onto your products, like an organic customer acquisition. One of the top ways this happens? Your customers share on social media. 

Now, to inspire your customers to share, you can’t just think about what matters to your brand. Think about what they would like to share—probably something engaging, creative, and fun. In a way, you’re actually creating for your customer’s audiences. Put yourself in their shoes and create a compelling, exciting experience that they’ll genuinely want to share with their friends and followers.

3. Eco-friendly materials 

Shipping products, especially on subscription, can add up to a lot of extra waste. The vast majority of consumers care about sustainability and prefer to shop with brands who prioritize it. When planning the packaging for your products, focus on ways you can use regenerative materials. 

Bumpin Blends ships their smoothie cubes in a completely compostable cooler that can dissolve in water. They also encourage their biweekly subscribers to switch to a monthly plan—that way, they’re getting only one box shipped each month and saving on all the extra packaging. To incentivize the switch, they offer an additional discount, so customers save more money and the brand has less environmental impact. 

4. Branding & education

You can also share this as a brand value on the packaging itself. Here, Keap Candles uses their packaging as a space to educate customers on how to properly compost and make use of their materials. 

As mentioned, your product packaging is like a blank canvas. This is a great space to share more—whether it’s instructions for use, details on the products, or a clever insert. 

Here, Bite writes a quippy line referencing back to their brand mission. 

And here, Dropps uses the packaging space to explain how to use their different detergent pods.  

5. Safe delivery 

While you should focus on all the elements listed above, ultimately the most important one is preservation. You want the products to arrive intact, with no broken parts or damaged pieces. Make sure that the box is outfitted with any necessary protective layers, like bubble wrap or tissue paper. Fit everything properly so there isn’t room for products to move around too much in transportation. 

What’s outside & inside count

Packaging is an essential element of your overall product strategy and customer experience. If your products arrive damaged or broken, your customers won’t get much use or enjoyment out of them. But, it would be a wasted opportunity to just send them in a plain box. Focus on both the pragmatic and the playful. It’s important to choose sturdy and reliable packaging, so you protect products in transit. And, the packaging is also a chance to continue telling your brand story through an unforgettable unboxing experience, intentional presentation, and additional branding and education.

The package will hold your customer’s items from the time between leaving your facility and arriving in their hands. Make sure it is a safe and secure container but remember that with function, there’s often an opportunity for fun.

The post How to nail product packaging for subscription boxes  appeared first on Recharge.

Online shopping has skyrocketed for a few reasons: convenience, safety, and preference. Having products delivered directly to their house saved shoppers the time and effort involved with a trip to the store. Plus, with more time at home, many took to online shopping as an activity—awaiting the arrival of a new package was something to look forward to in an uncertain and chaotic time.

While some predicted that the world opening back up would lead to drops in ecommerce activity, we saw the contrary. Between 2020 and 2021, lifetime value (LTV) increased by roughly 15% across all verticals. To better understand the stability of subscriptions, we dove into the data—comparing statistics from 2020 to 2021 and examining changes across seven verticals. 

Today, we’ll explore the psychological and social elements that answer the question: Why have subscriptions shown ongoing growth? If you’re curious, you can also read our full report here!

Products became part of our routine

For many people, the morning cup of coffee is a cherished ritual, a moment of time to be with yourself and warm up to the day. Even if you’re not a coffee drinker, you probably have a few routines that feel delightful and important—like reading before bed, going for a walk after work, or nightly skincare. Products quickly become an accessory to ritual, whether it’s the next book or natural moisturizer.   

In uncertain times, people crave reliable and repeatable experiences. So, customers began to build habits and routines around their favorite products. Subscriptions ensure that people always have their preferred items on hand, while also reducing cognitive load. With a subscription, customers automate their shopping and save time putting in orders and picking out products. 

In 2021, all seven verticals saw an increase in customers. Given that many routines coalesce around food and self-care, it’s no wonder that Food & Beverage and Beauty & Personal Care combined accounted for 54% of subscribers. 

They also saw impressive individual growth—Food & Beverage grew by 41% and Beauty & Personal Care by 25%. Clearly, people’s routines now include indispensable products. As Taylor Morris, COO of Better Way Health, said, “Subscriptions go hand-in-hand with [our customers’] regular health and wellness routines.”

The era of relational commerce

Today, consumers want more from brands than just products. Transactional commerce is almost solely focused on the sale. On the other hand, relational commerce prioritizes and values the customer relationship. Customer acquisition costs are high, so it’s in the business’s best interest to strengthen customer relationships. Additionally, happy customers are some of the best brand advocates. 

Subscriptions help create these lasting connections—they lower churn, drive lifetime value, and create opportunities for communicating with customers. When businesses implement subscriptions, they can transform one-time transactions into frictionless, ongoing relationships. 

Consumers value brands for their ability to provide a comprehensive, engaging experience. And with subscriptions, there are endless touchpoints for brands to interact with their customer base. For example, brands can build up their social media presence to further develop customer relationships. 

Consumers also pay attention to a brand’s values—such as sustainability—and even more so with subscriptions. Since they’re planning to regularly give money to a business, they are especially drawn to brands that pledge to do good. 

Subscriptions encourage brands to consider their customers as human beings and focus on cultivating long-term relationships. As Stephen Tracy, Founder of Keap Candles, said, “Like human relationships, when you prioritize a deeper sense of care and empathy in the ways you act, stability follows naturally.” 

Proven convenience 

For some consumers, 2020 was a trial run with subscriptions, and they saw the benefits. Consumers got to experience the convenience of having products delivered on a set schedule. Gone are the days of going to your cupboard to find there’s no more coffee, or discovering you’re almost out of shampoo in the shower—people can rely on subscriptions to fuel their daily habits. And with shopping tasks automated, they have more time back on their hands—time they can direct back to family, hobbies, and the joys of life. 

Successful merchants empower their customers to tailor a subscription. No one wants to be locked into an inflexible program. If someone goes out of town, they’ll want to pause a shipment. Or maybe they change their mind about a flavor and want to switch it up. Subscriptions acknowledge the vast range of consumer needs and enable customization. 

Customers made use of these flexible options—in 2021, there were 12 million total skips and 7 million total swaps. Clearly, customers appreciate and utilize the ability to adjust their subscriptions. This flexibility also increases customer retention, making it easy for someone to customize a subscription rather than churning altogether. 

Subscriptions provide stability

As the world around us continues to change, we turn to things that offer consistency and reliability. Subscriptions are a powerful, stabilizing force, for both the business and the customer. They offer an opportunity to build a rich, sustainable relationship and transform how we think about ecommerce. 

In 2021, existing subscription brands grew their overall customer base by an average of 31% across verticals—and 2022 is posed to show even more exciting growth. For more insights and key findings, explore our full report here. 

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If you’re looking to level up the customer experience, you’re in luck. We’ve looked at the science to understand exactly what works, and how you can bring it to your business. 

Create a connection with a brand personality 

Research has shown that when customers evaluate brands, they primarily use emotions, such as feelings and experiences, rather than objective data, like information and facts. In short, your customers will prioritize how they feel about your brand. 

For example, customers will often buy brand-name products even when generic ones with the same ingredients are available at a lower price—this is because people feel pulled by the positive emotions they associate with a brand. Customers also perceive personality characteristics in brands the way they do in people. And just like with people, certain traits are preferable—including relatability, positivity, and trustworthiness. You can communicate these traits through your website, packaging, and messaging. 

Maximize touchpoints 

The moment someone lands on your website, they’re having an experience with your brand. The peak-end rule states that people ultimately assess an experience based on how they feel at its peak and its end. But this doesn’t mean you should neglect the other stages! 

Your brand should imbue every part of the experience—the copy, images, and colors. However, you should give extra attention to the peak moments. Create a truly memorable experience by introducing delight at specific touchpoints. And definitely end on a high note, ensuring your customers walk away with a positive feeling. 

Anticipate customer needs

With subscriptions, you create an ongoing relationship with your customers. Part of a good relationship is continuously checking in and evaluating how things can be better. Proactively monitor for pain points your customers have and work to address them. 

For example, Super Coffee made a point to experience their website from their customers’ point of view. By placing themselves in their customer’s shoes, they could see the exact point where they would churn. 

Easy does it 

When customers need to change their subscription—like swapping a flavor—they don’t want to fumble through a clunky interface. In fact, if there are too many steps involved, many will cancel altogether. One way you can make things super simple for your subscribers is to implement transactional SMS. With SMS, subscribers can add on one-time products or skip an order—all from their phone with just a quick text and no need to log into a portal on their computer. 

Personalization pays off

Everyone enjoys personalization, like a handwritten card or a thoughtful gift. Personalization helps people feel valued and considered. This is a meaningful learning to bring to your customer experience—implement personalization wherever possible, like using the customer’s name in all communication or tailoring recommendations. 

A study from the University of Texas found that people prefer personalized experiences because they mitigate information overload—or at the very least, reduce the perception of information overload. When we know the information presented is customized to us, it feels more navigable. Even if the volume isn’t actually less, we think we’re receiving what we need and don’t have to sort through lots of extra fluff. 

Many assume that more options make happier customers, but customers actually prefer having fewer. Analysis paralysis refers to the overwhelming feeling that comes with a surplus of possibilities—people overthink their decision and feel less confident about their choice. Help customers feel calm and at ease while shopping by offering them a simplified experience—for example, you can help them narrow down options with filters, a quiz, or personalized suggestions. 

Put them in the driver’s seat

The same study also found that personalization helps people feel more in control. Again, this phenomenon is more an illusion—the customer doesn’t actually have more control viewing tailored information, but they feel like they have more agency. Think of where you can put more control back in the customer’s hands. 

For example, create a customer portal. In this centralized location, customers can manage their orders, add on products, and make updates—virtually everything they need to do. And it’s all at their discretion without needing to seek extra help or wait for assistance. 

Following the science

Everyone is unique, but as a species, human beings have proven preferences. As these studies have shown, customers enjoy easy, personalized, and connected experiences. If you’re curious about continuing to improve the customer experience, conduct some science of your own—you can run A/B testing, solicit feedback, or experiment with different changes to see how they perform. Providing a top-tier customer experience involves empathy, attention, and creativity—it’s an art and a science.  

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Customers need more than simply a good product to feel satisfied—they expect responsiveness, excitement, and personalization. So let’s talk about how you can create an exceptional experience for your customers, and ultimately encourage them to stay engaged with your business. 

Build a brand community

Bring your customers into the ethos of your brand by fostering a strong, active brand community. With a brand community, you create broad emotional connections, which are key to boosting brand loyalty. Focus on sharing the values behind your brand and forging connections between your customers. They’re more than numbers—they’re people, like you and me, and they crave meaning, belonging, and purpose. 

Blume, a skin, body, and period care company, was founded by two sisters looking to destigmatize puberty and periods. In addition to making products with all natural, organic ingredients, Blume promotes education and advocacy. 

Plus, they’ve focused on building a brand community around their values—they run Meditation Mondays on their Instagram account, offer resources on comprehensive sex education, and source feedback from their most loyal customers. By prioritizing their community, Blume has created a loyal following of customers who resonate with the brand’s mission. 

Personalize their experience 

Providing your customers with a tailored experience makes them feel valued and more inclined to do business with your brand. In fact, research indicates that 80% of consumers are more likely to make a purchase when brands offer personalized experiences. Personalization is no longer just a preference—now, it’s an expectation. 

Studies have shown that emails with personalized subject lines are 26% more likely to be opened than emails without. As you communicate with your customers, whether it’s through order notifications, email updates, or in their portal, always use their name, and personalize the experience whenever possible. 

For example, update product suggestions based on what a customer has already purchased. You can also send them relevant content based on purchases as well, such as a recipe booklet for lattes to try with their espresso pod subscription. 

Rewards and loyalty programs 

Loyalty programs build strong emotional connections with your customers and incentivize them to keep coming back. With rewards, you can tangibly show your appreciation for customers’ business. 

Bumpin Blends makes superfood smoothie cubes to help manage everyday symptoms, like fatigue and headaches. Subscribers earn points with every purchase, and can accumulate even more through referring friends, leaving reviews, or following Bumpin Blends’ social media accounts. Bumpin Blends has four loyalty tiers, and as subscribers advance, they unlock new perks—priority personal concierge, exclusive gifts, and access to taste test new flavors. 

With loyalty programs, you inspire motivation in your customers and give them more than just the product they’re buying. You can gain a competitive advantage by giving great rewards—Bumpin Blends even gives away VitaMix blenders. 

There are many products and services that beat out free ones because of the advantages they offer, like no advertisements on a streaming service, or exceptional customer service with a certain credit card. 

Loyalty programs can also help combat subscription fatigue. If you know most customers churn after eight months, you can send them an exclusive, attractive reward seven months in. These programs help keep the subscription fresh, and let you get ahead of when customers are most likely to leave. And, loyal customers are one of your most powerful marketing tools. 

Excellent customer experience

Ensure that at every touchpoint, customers feel respected, satisfied, and positively about your brand. Focus on your digital storefront, and ensure your website is user friendly with easy to navigate, intuitive pages. You can make returns simple, offer free shipping, or design a fun and engaging unboxing experience. Every element counts towards their overall experience with your business. 

One of the most important things to focus on is responding promptly to any requests and feedback—whether it’s reviews or direct contact with your business. We live in an age of constant communication, and no one likes to be ignored. Fast responses let your customers know they matter to you and that you care about their experience. Acquiring a new customer costs anywhere from five to 25 times more than retaining an existing one, so it should be a top priority to try and fix any customer issues. It also improves your brand reputation, as nearly nine out of 10 customers read online reviews before purchasing products. 

Finally, be transparent with your customers. If there are shipping delays, a product is out of stock, or there are any changes to their order, keep them in the loop. Clear communication builds trust even when there are unavoidable issues. 

Stand out in your industry

Today, there are countless businesses creating the same product. Focus on how you can create a unique and compelling offer. Customers want more than just the “thing” they’re buying—they want to buy from a brand with resonant values and captivating experiences. 

Keap Candles was created to bring more stillness, peace, and intention into people’s lives. They’re dedicated to restoring the balance between humans and the natural world, and designed zero-waste candles with reusable holders and plastic-free packaging. Keap wants to usher in a new paradigm, a regenerative system of consumerism that benefits both people and the planet. 

As a brand focused on connection and intention—via the ritual of candle lighting—they’ve designed a soulful, artistic experience for their subscribers. Each month, Keap creates candles inspired by seasonal scents. Alongside their candle, subscribers receive coasters, art cards, matchboxes, and poetry, all inspired by the same seasonal elements. These extra pieces encourage subscribers to further explore the monthly themes, and experience their Keap Candle in a much deeper, profound, and impactful way. 

Happily ever after with subscriptions

With subscriptions, you create lasting, long-term relationships with your customers. Rather than a single moment, you have repeat interactions and built-in opportunities to continue building the relationship. Your customers have opted in to doing repeat business because they find value in your product and your brand. 

Personalization is key to ensuring your customers continue to feel like they’re getting an exceptional experience. Look for ways to reward them with value when they stay as your customer, whether that’s being a part of a brand community, an exciting rewards program, or impeccable customer service. Get creative with how to inspire your customers, and to ensure that your brand offers more than just good products. 

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A number of things can help set a brand apart from its competitors—quality products, a top-notch customer experience, and consistent value, to name a few. Though these components are essential, you have to hone in on your “why” to evolve your brand and take your impact to the next level. 

Why does a why matter? 

Your “why” is the glue that holds all the moving pieces together. It helps refine your messaging and voice so that you can share your story and products with the world. Knowing your “why” enables you to connect with your customers on a deeper level and form lasting relationships. 

Creates your brand 

As we’ve mentioned, your “why” is the glue, the common thread that ties everything in your brand together. It’s also the foundation for building your brand. Being clear on your purpose and vision helps you map out and develop cohesive elements. 

For example, Keap Candles was created with the intention to help people reconnect with themselves and restore balance with nature. They make zero-waste candles using biodegradable materials for everything from labels to packaging, and reusable candle holders. Consumers easily connect with Keap’s “why”—to bring more stillness, mindfulness, and peace to daily life, and to build a regenerative business that benefits the planet for years to come. 

Keap has built an engaging, human brand centered around their “why.” With their candle subscription, customers are taken on a scent journey throughout the year. Every month, customers receive candles inspired by seasonal elements, along with original poems and stories related to the month’s scent. Keap also creates limited edition seasonal art for their subscribers. Their “why” has helped them create a wealth of value and inspiration for customers. 

Establishes consumer trust

Customers can connect with a purpose-driven “why,” whether it’s to save them time with a convenient solution or offer them a higher-quality product—having a clear “why” invites your customers in your door and builds trust through the support of shared values. 

Bumpin Blends makes superfood smoothie cubes to support everyday symptoms, like fatigue or indigestion. While pregnant, Lisa Mastela realized that there needed to be a simpler way to get the benefits of smoothies. She decided to help other women meet their nutritional needs and nurture their day-to-day symptoms in an easy, fast, and delicious way. Their brand is focused on accessibility—bringing dietitian-designed smoothies to people’s doors and promoting health and wellness through simple, widely available ingredients. For something as personal as what they put in their body, customers need a brand they can trust. 

Helps organize internally

In addition to helping you communicate your brand externally, it can also help your processes internally. Your “why” can function as a North Star for employees, helping everyone get on track towards the same goals and stay aligned with the same vision. It can also help create a strong work culture, by attracting people with shared values and promoting them in the workplace. 

Incentivizes customers to support 

Finally, having a clear “why” can make supporting your brand more attractive to customers. In fact, a recent survey showed that 72% of U.S. customers believe it is “more important than ever” to buy from companies that reflect their values. The face of commerce is changing, with more people preferring to have meaningful relationships with the brands they support, and expecting brands to demonstrate equity and welfare in their leadership. 

Who Gives A Crap makes premium bamboo and 100% recycled toilet paper. The founders created the company after learning that 2.4 billion people don’t have access to a toilet and around 289,000 children under five die every year from diarrheal diseases caused by poor water and sanitation. After a successful crowdfunding campaign and delivering their first product in 2013, their toilet paper is now in bathrooms across the country. They donate 50% of their profits to help build toilets and improve sanitation in the developing world.

Ecommerce has changed how brands need to show up and has created a new paradigm for commerce—one that helps build real connections, a regenerative economy, and more sustainable practices. Subscriptions are a major piece of this new landscape. They create a long-term, lasting relationship between the brand and the customer, help cut down on waste, and develop more eco-friendly routines.

As you continue to refine your brand, from your processes to your marketing, remember to come back to your own origin story—your “why” will help guide you on the path to creating meaning, impact, and success.

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Consider your mission statement a guide for you and your customers. You can use it to inform your processes, from marketing to manufacturers you work with. And, your customers can be informed and aware of your core principles and purpose. 

Whether you’re writing your mission statement from scratch or looking to improve its clarity, here are some ways to better communicate your purpose: 

Hone in on your values 

Before you can communicate your values, you need to be clear on what they are. Your brand can do mission-driven business, leading with a conscientious vision, and infusing awareness into your strategy. 

Recall the origin story behind your product. Was it created to help people live healthier lives? Save time? Have more connections? Remember the ethos behind the problem you were trying to solve. Then map out the values that supported the solution. 

Rather than writing about your product, focus on the overarching goal. Refine your intention, and focus on communicating that. 

Clarify your purpose

After zooming out to include the universal goal, zoom in on the nitty-gritty. Think of the who, why, what, and how. 

Who are your customers? Do you make products for new parents or frequent travelers? Connect with the audience you are serving. 

Why did you create this solution? What problem did you see? 

What is your product? Elaborate on what you offer. 

How? Do you use natural ingredients? Do you partner with organizations? Or do research with your customers?  

For example, in Hello Bello’s statement, they clearly spell out their mission and how they achieve it. 

Consider the structure

Now that you have the overarching mission and specific details, formulate a clear structure. Think of taking your customer on a journey through the statement – leading with inspiration, clarifying value, and finally adding specificity. Look at how clear Native‘s mission statement is. They’re creating safe, sustainable products, for people and the planet.

Personalize the story

In their mission statement, Hint’s founder  Kara Goldin shares her journey of trying to find a way to up her water intake by adding slices of fruit. “What began as a quick solution to my own health problems, soon turned into the product and the company you know today as Hint,” she writes. By giving a glimpse into the people behind the brand, Hint invites customers to connect with the purpose.

Drive action 

A strong mission statement is dynamic – it’s more than just words. LOLA, a company that makes period and sexual wellness products, champions accessibility and transparency for all. And LOLA walks their talk – their products are made with trusted and safe ingredients, like 100% organic cotton. And, reflective of their mission to promote accessibility, they started an initiative to give period products to people in need. Additionally, they contribute to advocacy work and spreading awareness about health information. 

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