Beyond Subscriptions: How Recharge Drives LTV


Our team at Barrel has been working with Recharge for years now, back when it took custom code to do anything unique outside of a traditional subscription program.

Since then, Recharge has taken the time to listen to customers and gather feedback to evolve the platform to address their business needs more effectively.

While their core offering still revolves around subscriptions, Recharge offers more of a complete retention platform aimed at increasing LTV than ever before.

Let's look at an example:

A merchant uses Recharge to design a subscription program where customers can build a bundle to mix and match flavors.

Customers can seamlessly update their subscriptions via the Recharge Affinity portal, swapping out flavors as they want.

The merchant can spin up changes and modify the portal experience in minutes vs. weeks.

While subscriptions are gaining steam, the merchant sees an opportunity to engage their best customers with an exclusive offering. They use Recharge to launch membership, giving customers access to exclusive content, monthly products, and an online community.

As membership takes off, the merchant notices bundle subscribers tend to churn around three months. The merchant needs a way to keep subscribers engaged until month five. They know customers who subscribe for this long tend to stick around.

The merchant taps into Recharge Flows to design a series of automations that recognize the subscriber's place in their journey and keep them engaged, starting with these areas:

They differentiate between subscribers canceling at months two, three, and four with different messaging and incentives to continue subscribing.

They surprise customers with a gift at month three and thank them for subscribing.

They run an A/B test to see if customers prefer the gift or store credit to spend more.

The credit wins out, so they pair it with a targeted upsell, further driving LTV and loyalty.


This post originally appeared in Edition No. 162 of my newsletter. Subscribe here.

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