A study by McKinsey shows that eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers. Bain & Company found that it costs 6-7 times more to acquire new customers than it does to retain existing customers.
The implications are obvious. Recurring customers are way more profitable than new ones. That’s the reason why the subscription business model has become so popular amongst eCommerce retailers recently. By offering subscriptions, rather than regular eCommerce, brands can lower costs and increase their customer lifetime value.
In today’s growth hack we’ll explore the subscription business model using case studies, and then map out how you can convert your eCommerce revenue into recurring revenue by implementing subscriptions on your store.
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