Introduced one-time customers to subscriptions to grow LTV

Vertical

Health & Wellness

Use case

Replenishment

About

The Taproom Agency is an Atlanta-based agency that helps Shopify and Shopify Plus merchants master their customer journeys and transform them into sales powerhouses. When Progressive Nutracare came to them for help migrating their online store to Shopify, The Taproom also helped them introduce a subscription model for the business.

Because Progressive Nutracare sells prescription supplements meant to be taken on a recurring basis, The Taproom noticed a huge area of opportunity that wasn’t being taken advantage of. In their experience with previous clients, brands that offer subscriptions see better retention and higher lifetime value. This was a prime opportunity to introduce a subscription model. When it came time to migrate platforms, the site was also redesigned to put recurring subscriptions front and center.

Progressive Nutracare used subscriptions to grow AOV over $100

One of The Taproom Agency’s strengths is its ability to help merchants navigate complex migration processes while bringing creative ideas to the table that drive revenue. With services that range from store setup and theme development to marketing strategy and photography, they help merchants master online store launches (and everything before and after, too.)

“Subscriptions were a no-brainer for our business. Recharge made it easy and seamless to implement, and now revenue is up and so is our customer satisfaction.”

Joshua Lovern

General Manager

Challenge

Progressive Nutracare had been using an ecommerce platform that was reaching its end of life, and was ready to migrate its online operation over to Shopify. They needed an agency partner that understood their unique business model, which included a brick and mortar doctor’s office as well as an online store.

During the planning session for this project, it was suggested to add a subscription component, as this would make it easier for their customers to auto-refill their supplements without having to come back to the physical retail location.

Subscriptions seemed like a natural fit for this business model, as it would improve the overall customer experience and would also add some recurring revenue for the business. Plus: It encouraged Progressive Nutracare’s customers to commit to the business’s long-term strategy and product recommendations, thus boosting efficacy and helping ensure customers saw greater value out of the brand’s services and products (rather than falling off after one or two regiment cycles.)

Because Progressive Nutracare’s old system didn’t allow for a subscription option and only offered limited data analysis, Recharge was able to offer a subscription billing integration that would work nicely with Shopify.

Solution

Progressive Nutracare was able to manage the migration and redesign in one fell swoop, rolling out the new subscription offering upon launching the new Shopify-based store. They went live on Shopify with the new subscription offerings in March of 2018 and were profitable on the very first order, which came in just four days after the initial launch.

Progressive Nutracare utilized their unique position as a physical retailer to market to their existing customers. After patients visited the office for the first time, the team began offering their prescriptions as recurring subscriptions that would charge and ship automatically. Buy-in was excellent, and the subscription business spread like wildfire.

Results

Within the first 30 days, 9.8% of the orders that were placed were subscription orders. In 60 days, that went up to 11.8%. In 90 days, it went up again to 14.8%. Now, a year post-launch, the percentage of revenue that comes from subscriptions versus one-time purchases is a whopping 45.6%. Their goal was to hit $20,000 in recurring revenue within the first year, and they had reached that by December, just nine short months after launching.

Subscriptions have proven to be such an integral part of their business model that Progressive Nutracare plans on scaling up its subscription offerings in the future and expanding its selection of subscription-based products available for customers to order online.