Having a subscription option at checkout on your Adobe Commerce powered by Magento store can provide tons of value for customers, saving them time and money. Plus, it’s a consistent way to increase your store’s revenue.
Our client US Water Systems recognized this opportunity. When they were ready for a site migration to Magento Commerce, they chose to set up a subscription option. Almost immediately after implementing subscriptions, sales steadily rose.
Let’s take a look at how setting up a subscription service increased revenue for this client.
Quick Stats:
Client name and website: US Water Systems; uswatersystems.com
Implementation: Migration from Netsuite Commerce to Magento 2 Commerce with new subscription options by Subscribe Pro
Since 2001, US Water Systems has become a top provider of commercial and whole-house water filtration and treatment systems. They credit their success to sticking close to a core value of top-notch customer support offered by experienced professionals.
But they also have a unique business model. US Water Systems can dramatically reduce the cost of high-quality water treatment systems. They do this by simply cutting out middlemen and selling directly to consumers.
Better Performance, Updated Design, and Increased Revenue
The company reached out to Shero to improve their site performance and appearance. Their goal was to seamlessly migrate to Magento Commerce, improve search results (poor search results were resulting in a high bounce rate), and modernize the site’s overall design. Of course, we needed to make sure any changes didn’t turn away loyal customers. A customized eCommerce site was at the center of this model.
Plus, they wanted to integrate a new subscription program as a way to solve reorder problems for busy customers. Not to mention, this could benefit the company’s revenue goals, too.
They’d thought about offering a subscription service, in hopes of increasing recurring revenue. Many of the filtration systems they sell aren’t repeat purchases. Instead, customers have them in their home for around 15 years. But their line of consumable products, like water filters, often need to be replaced within months. Those who subscribe can now automate replacements.
Setting Up eCommerce Subscriptions
Shero suggested a few options for subscription services and the client chose Subscribe Pro. This is specifically because of how well the service integrates into Magento.
Shoppers can now subscribe to regularly receive filters with carbon, PFOA filters, and products like membranes that need to be replaced every one to three years (popular at places like coffee shops, breweries, or labs).
When the service was available, US Water Systems waited to set up subscriptions because they expected the task to be difficult. There were several products to list. But when they bit the bullet, the client was surprised that implementation only took 48 hours from start to finish.
Implementing the service was one step; finding subscribers was the next.
To encourage new signups, they ran a discount program with a goal of reaching 1,000 subscribers in year one. Subscribe Pro comes prepackaged with incentive program options, such as ongoing discounts. Plus, they provide reporting to highlight areas of opportunity or growth.
The Results
Better informed customers.
We started with a discovery phase of the client’s user experience. Our team updated the site to bring a focus to the educational advice that the company offers. The goal here was to help customers make informed choices when it comes to finding the best water filtration and other systems.
In the new format, each category and product page is an educational experience. This—combined with clear navigation, robust search functionality, and bold calls-to-action—help to make shopping for water treatment supplies a painless experience.
Recurring revenue goals reached.
As for that goal of reaching 1,000 subscribers? Well, they nailed it—exactly a year from going live with the offering—and those numbers continue to climb.
Better customer communication.
Adding Subscribe Pro also led to easier customer communications, thanks to the automated email service they provide. For instance, automated messages now let customers know when their card will be auto-charged. Confirmation emails to new subscribers are automated, too, freeing up time and resources.
This story is just one example of how our partnerships with top-quality companies can benefit your business. See our full case study for US Water Systems’ site migration, here.
Interested in learning more about how to set up subscriptions on your eCommerce site? Reach out and we’ll find a solution that works best for your business’s goals.
Gentian, CSO and co-founder of Shero Commerce, guides the company and client digital strategies. He's an expert in technical SEO, Inbound Marketing, and eCommerce strategy.
