If you’re an e-commerce brand you’ll have no doubt thought about whether adding a subscription model revenue stream is right for your business. Subscriptions are an essential tool for purpose-driven brands looking to nurture longer term relationships with their customers, and achieve sustainable growth. Beyond being an undeniably powerful revenue driver, the subscription model allow businesses to create predictable income, nurture customer loyalty, and drive long-term impact. It’s something we thought you’d enjoy us diving into in more detail, so in this week’s blog we’re exploring how purpose-driven brands can leverage subscriptions to grow predictably while staying true to their mission. 

Why Predictable Growth Matters for Purpose-Driven Brands

To start with, we want to ask – why is sustainable growth important? For brands committed to making a positive impact, growth goes beyond boosting sales. The focus is on creating sustainable, reliable revenue that supports both the brand’s mission and its customers. In an increasingly volatile economy, subscription revenue streams can provide some stability, allowing businesses to invest more confidently in their goals and values.

Predictable growth allows brands to:

1. Invest in Social Impact Initiatives: Brands with stable revenue can regularly allocate resources towards the social and environmental causes that matter to them.
2. Build Stronger Customer Relationships: Subscriptions offer a framework for consistent, meaningful engagement with customers.
3. Plan for the Long Term: Predictable income enables brands to make long-term investments in quality, sustainability, and customer experience.

Customer Lifetime Value (CLTV): The Foundation of Sustainable Growth

The real value of a subscription model lies in an important KPI called Customer Lifetime Value (CLTV). CLTV is a great metric to keep an eye on as it shows the total revenue generated by a customer over the duration of their relationship with your brand. Iincreasing CLTV is essential because it means each customer delivers more value to you over time. Growth activities become more cost-effective, and you’re then able to reinvest more in your mission.

What the subscription model does is encourage repeat purchases, cross-selling, and upselling within the subscription experience, which increases your CLTV. By increasing the value of each customer relationship, purpose-driven brands can grow sustainably and acquire new customers in a more efficient way.

The Subscription Model as a Key Driver of CLTV

Brands using subscription models can depend on regular income from loyal customers, rather than relying on one-off purchases. The subscription model increases revenue and allows you to nurture stronger relationships with your best customers.

For purpose-driven brands, subscriptions provide additional benefits:

• Customer Loyalty: Subscriptions naturally encourage repeat business and build long-term customer relationships.
• Increased Engagement: Regular, predictable interactions keep customers connected to the brand and its mission.
• Opportunities for Education: Subscription models allow brands to share their values and educate customers on important topics over time.

Is Your Product Subscription Model Ready?

This brings us to explore what sort of products are suited to a subscription model. Products that lend themselves to frequent, regular use such as skincare, wellness items, and consumables are typically good candidates for subscription services. Less frequently purchase products such as sofas, white goods, jewellery, furniture – are challenging to sell as subscriptions. These tend to be characterised as products that you’d save up for or label as big ‘life purchases’.

Here are some key characteristics to consider when deciding if your product is subscription-friendly:

1. Frequency of Use: Products that customers use daily or weekly are ideal for subscriptions, as they require regular replenishment.
2. Consumable Nature: Products like food, skincare, or household essentials are naturally consumable and fit well with a subscription model.
3. Value Add: If your product provides a consistent, valuable experience (such as curated educational content), it may still be viable for a subscription model, even if it’s not strictly consumable.

If your product doesn’t lend itself well to the subscription model, you can still look to offer value through alternative approaches such as product bundles, limited-time subscriptions, or exclusive member content that appeals to your audience niche.

Building a Successful Subscription Model: Steps for Purpose-Driven Brands

1. Define Your Subscription Purpose and Audience
Start by getting clear on why you want to offer a subscription model and who it will serve. Is your goal to offer greater convenience, inspire loyalty, or deepen customer engagement? Identifying your purpose and target audience will help shape your subscription strategy and ensure it aligns with your brand’s mission.

2. Create a Subscription Offer That Adds Value
The most successful subscriptions deliver clear, tangible benefits to customers. We always want to think creatively about how we can offer an unparalleled experience. Look beyond offering products at regular intervals and ask yourself – What can we add to make the subscription experience truly valuable? 

For example, purpose-driven brands might offer:

• Exclusive content or educational materials that support the brand’s mission
• Member-only access to new products or limited editions
• Personalised recommendations based on past purchases

These thoughtful elements will improve the customer experience and reinforce your brand’s commitment to its values.

3. Simplify the Subscription Process
Simplicity is key. The best subscription sign-up experiences are easy for the customer to understand and manage. Make it super easy and clear for customers to adjust their subscription frequency, pause or cancel as needed – give them full control over their experience. Frustration with the subscription process is a common reason for cancellation. Focus on making the process as seamless as possible and providing stellar customer service.

4. Implement Personalisation
Personalisation is almost always a good idea, and it can make a significant impact in subscription-based models. Let’s say you’re offering a skincare subscription, consider tailoring product recommendations based on each customer’s unique skin type and preferences. Purpose-driven brands can also personalise by aligning product suggestions with customer values, such as eco-friendly packaging or fair-trade ingredients.

5. Continuously Engage and Educate Subscribers
Subscriptions provide an organic platform for ongoing communications, so make sure you use the opportunity to connect meaningfully with updates, education and to reinforce your mission and values. E.g.

• Send regular newsletters about your sustainability efforts or new initiatives.
• Share customer stories or case studies that align with your values.
• Provide relevant tips and advice related to your product’s purpose, such as wellness routines or eco-friendly practices.

6. Monitor and Optimise for Retention
The key to maximising your CLTV metric is customer retention, so keep a close eye on metrics like churn rate and customer feedback. Look for trends in cancellations and identify areas where you can improve. A top tip here is to engage your customers through surveys or feedback forms as a way to gain valuable insights for enhancing the subscription experience.

7. Reward Loyalty
Showing love and appreciation for long-term subscribers is a strong way to build brand advocates. Look to set up loyalty rewards or special incentives such as exclusive discounts to surprise gifts. For purpose-driven brands, these rewards can reinforce the values of your business by offering sustainable or ethically sourced products as rewards. This approach can strengthen the connection between your mission and your customers.

Why The Subscription Model Works Well for Purpose-Driven Brands

Purpose-driven brands have the opportunity to build a deeper connection with customers through their subscriptions. Conscious consumers signing up for a subscription are committing to a long-term relationship with your brand, one that aligns with their values and beliefs. This means you have a platform to make a meaningful impact through educating these loyal customers and reinforcing thev alues you share with them over time.

Each recurring order reaffirms the customer’s commitment to supporting a cause they believe in, making the brand an integral part of their lifestyle. By working smart to build a sense of community, purpose-driven brands can build a loyal customer base that feels invested in the brand’s mission. 

Building Community Through Subscriptions

Let’s look at this in a little more detail. When customers commit to a subscription, they’re joining a community that shares their values. Purpose-driven brands can try to foster a sense of belonging by creating spaces for subscribers to connec; exclusive online communities, social media groups, or member-only events.

These touchpoints allow you to engage with customers on a deeper level, offering them a place to share their experiences, ask questions, and celebrate the brand’s mission. This connection transforms subscribers into advocates, amplifying your brand’s impact and spreading your message more organically. It’s worth finishing with a reminder that word of mouth is the most powerful form of advertising.

Final Thoughts: Is A Subscription Model Right for Your Brand?

If your goal is to grow sustainably whilst building more loyal customers and advancing your mission, a subscription model could be a really strong fit. It allows you to build predictable, purpose-driven growth while creating meaningful, lasting relationships with your audience. For purpose-driven brands, subscription models can boost revenue and create a platform for customers to connect over shared values. Lastly, it can support you in building a powerful community that helps spread your message and support your mission.