Build customer loyalty with undo power
Consumers have an overwhelming choice when it comes to stocking up on their wardrobe. In today’s subscription service economy, many are choosing to entrust these decisions to services that will send them clothes to try on based on their preferences, including new items they might not have tried on otherwise. .
This type of customer relationship is built on the trust and value a brand brings to the customer, and while many consumers can be trusted, it only takes a little friction in a checkout experience to send a potential or existing customer to a competitor. The success of a subscription business can sometimes be determined by its willingness to let customers change their minds – known in the industry as customer churn.
“We invite churn because we inherently believe in our model that customers will want to opt out and then come back,” said Jalem GetzCEO and President of Soughta try-before-you-buy online retailer that employs style experts and technology to select active apparel or gear based on a customer’s budget, size and style.
“We bet they’ll come back, so we’re knocking down the opt-out walls [of] subscription and make it much easier,” he said.
Give the power of transaction to the customer
It might seem counter-intuitive – a business making it easy for a customer to break up with them without forcing them to stay. Like any relationship, however, Getz said he thinks too much pressure to commit and too much trying to get someone to stay can scare them away. Sometimes a good look and trying another service for size is all it takes for a consumer to realize they made a mistake and become a customer for life.
“When customers go there and they downsize or downgrade their subscriptions, if you’re important enough to the customer, they’re going to keep you,” he said.
A frictionless experience is what will keep customers coming back for more, he explained, and there are many ways a brand can inject goodwill into a customer’s experience, starting with customer acquisition efforts. Partnering with reputable payment platform options such as PayPal, Shopify, or Amazon can provide a quality first impression, as can avoiding the “tough” tactics of avoiding cancellations by requiring a tedious phone call to a service representative. customer service rather than a ‘one-click’. rupture process.
“What you have done now is [given the customer a chance to say]”Yes, I’m going to break up with you, and I’ll never come back, and I’ll remember that experience when you market to me or talk to my friends,” Getz said.
Instead, he said he believes goodwill tactics, such as a credit that customers can use when they decide to return, can create a lasting positive impression that keeps a subscriber coming back for more. .
The future of subscription commerce
Getz said he thinks subscription commerce is going nowhere because customers seem to relish the surprise and delight they get from periodic shipments of items in exchange for monthly payments. However, businesses can learn a lot about their customers’ habits through technologies like artificial intelligence (AI) and predictive analytics and use that information to create even better experiences that can build loyalty.
Information gathered about previous orders can help a business determine whether a customer is ordering enough items to meet their needs, for example, or whether they’re refreshing too quickly with recurring orders. This data can also be used to make life easier for customers by providing reminders or asking for feedback. In the case of his company, Getz said he envisions a day when AI could even be used to collect information about calendars and travel plans so that vacation boxes filled with select items can be dispatched. in advance to a hotel for a customer’s destination, eliminating the need to pack certain items or limit themselves to high-priced last-minute purchases.
“When you walk in there, you’re going to open the perfect perfect holiday box with all the perfect items, and if you want to keep them, you do, and if you don’t, you just send them back to us right there,” a he said.”[This] it’s really getting into the DNA of our customers and their consumption habits and making sure we’re there and giving them the products before they even know they need them.
While reading customers’ minds may be in the future, AI can help subscription companies get closer by meeting their customers’ needs while allowing them to break up with them if they need to. . In the end, that might just be enough to keep them coming back for more.