How to Generate Recurring Revenue with Subscription Boxes on WooCommerce

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There are several ways of monetization that generate recurring revenue, and the most common being subscriptions. Here's how you can make use of this model and add a layer of personalization with custom boxes.
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As a WooCommerce store owner, understanding your customer’s needs is crucial for your business. Knowing them will help you provide better service and adjust your offerings to boost customer satisfaction and improve sales. The mantra is, make your customers happy, and you will make your store successful.

An often effective yet less common approach to growing your business is to adopt the subscription business model. A subscription model helps establish a recurring revenue stream, the kind that will ensure you more stability and a good foundation for success.

Why is Recurring Revenue Important for your Business?

Recurring revenue is monthly or yearly income that is stable, predictable and has a large probability of continuing in the future. It can be generated with membership sites, subscriptions, instalments, etc.

Generating recurring revenue guarantees stability, and gives you the comfort to provide better service or improve your product.

Stability comes from the predictability of recurring revenue. We can predict how much money we will be making in a given time period. Also, we know which customers we can count on. So, we can give our best to make them happy, satisfied, and loyal.

There are several ways of monetization that generate recurring revenue, and the most common is subscriptions. The subscription business model is used by several successful companies who have recognized the benefits of generating recurring revenue. And they use it for creating additional value – both for themselves and for their customers.

The Subscription Business Model Advantages

The subscription business model comes with a lot of perks. Hence, right from daily use products, such as groceries, personal care items, to on-demand services, a subscription option is a popular strategy to register customers and earn their loyalty. The most popular examples being Amazon (subscribe and save), Netflix, the Dollar Shave Club, and BirchBox.

Companies rely on this business model, mostly because it helps them:

  • generate recurring revenue and provide greater stability,
  • increase customer engagement and CLV (customer lifetime value),
  • better know their customers and understand their needs,
  • enable customers to choose or create the options that best suit their needs,
  • make existing customers happy and potential ones interested in long-term cooperation,
  • support scalability and enable faster achievement of business goals

All of these advantages make the subscription model attractive. But adding personalization to the mix makes subscriptions irresistible for buyers.

Tapping into the Power of Subscription Boxes

Customers want to feel special attention is being paid to them. They seek understanding, compassion, and dedication. More importantly, they seek more flexibility in the buying process.

Subscription boxes are a great way to build stronger relationships with your customers and to make them feel special. Subscription boxes allow for a personalized buying experience wherein the buying process easier and customers more satisfied with the choices they make.

The product bundles can be an excellent part of your marketing strategy. You can get to know customer interests and plan your inventory accordingly. The fact that the products are delivered in a box is to offer additional value to your buyers. It is a special kind of shopping experience that makes customers feel excited, curious, and special.

These could be pre-made boxes, and boxes assorted by the customers, or custom product bundles.

To give your customers an option to create custom product bundles is a really great idea, and something they are bound to appreciate. After all, you can’t put all your customers ‘in the same box’, so why give them only one box option to use?

Combining Custom Product Bundles and Subscriptions

If you have a WooCommerce store, you can use subscription boxes as a great way of creating recurring revenue and for overpowering the competition.

The WooCommerce Subscriptions plugin offers excellent options for subscription management. No matter what kind off products (or services) you offer, this plugin takes care of the subscription process.

When it comes to creating and selling subscription boxes, you’ll need the WISDM Custom Product Boxes plugin. This plugin is compatible with WooCommerce Subscriptions plugin and is the perfect solution for those looking to offer product bundles on a subscription basis.

With both these plugins, you can,

  • create an unlimited number of product bundles
  • let customers choose pre-built or partially-filled product boxes (it makes decision making simpler and accelerates the buying process)
  • allow customers to create their own personalized product boxes
  • set a fixed price or calculate the box price based on products added to it (dynamic pricing)
  • allow customers to purchase the box as a gift (gift-wrapped with a personalized message)
  • let customers subscribe to the custom product boxes on a timely basis
An example of how a subscription box is created

Having the flexibility to create your own personalized box and to subscribe to it on a daily, monthly, or yearly basis can elevate the shopping experience and knock any competition out of the park.

Subscribe to Success

As customer demands increase, they want the buying process to be personalized, flexible, and hassle-free. A good subscription service can unlock exactly that.

If you are a WooCommerce store owner, think about the subscription business model and embrace the power of subscription boxes. You can’t go wrong, no matter the type of product on your store. Plugins like WISDM Custom Product Boxes can ease your way to more sales and more loyal customers while boosting average order value.

The key is to not limit your customers – let them choose between various options and give them control over their choices. Show them that you care for their needs!

The more they enjoy shopping, the more often they will be coming back! The perfect opportunity to generate recurring revenue, wouldn’t you agree?!

Disclosure: WP Mayor is supported by its audience. When you purchase through links on our website we may earn an affiliate commission at no added cost to you. This does not influence our recommendations – we always recommend the best products and services available at the time.

Sagar Sheral

Sagar is a Digital Marketer. When he’s not working he is either vrooming around the city or watching Sci-fi flicks at home.

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2 Responses

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