Amazon's Subscribe & Save program is a powerful tool for brands looking to secure consistent repeat sales, foster customer loyalty, and enhance brand awareness. Understanding its impact is critical for sellers deciding whether to enroll their products in this program. In this case study, we dive into the journey of a brand that embraced Subscribe & Save, highlighting the significant benefits it accrued along the way.

‍

Unlocking the Power of Subscribe & Save

‍

One of the key perks of Amazon's Subscribe & Save lies in its ability to generate consistent repeat sales. By offering customers the option to subscribe to regular deliveries of their favorite products, brands can establish a reliable revenue stream. Furthermore, this subscription model encourages customer loyalty, as consumers enjoy the convenience of automated reordering while benefiting from cost savings.

‍

Driving Conversions and Sales Growth

‍

Amazon indicates that products offered at the 10%/15% discount under Subscribe & Save can drive up to a 1.8X increase in conversion compared to the lower option discount tiers. This finding underscores the significance of pricing strategy in incentivizing subscription enrollment and driving sales growth.

‍

Case Study: Navigating Discount Optimization

‍

Consider the journey of Love Wellness, which initially set its Subscribe & Save discount at 10%. However, to test different pricing strategies, the brand decreased the discount to 5% in June, only to revert to the original 10% level in December. The graph below illustrates the impact of these fluctuations on the brand's Subscribe & Save performance.

‍

‍

Analyzing the Results

‍

As depicted in the graph, Love Wellness experienced notable fluctuations in subscription enrollments and sales corresponding to changes in the discount level. Initially, the 10% discount spurred a surge in enrollments, driving robust sales growth and fostering customer loyalty. However, the reduction to a 5% discount led to a temporary decline in subscriptions and sales, underscoring the importance of competitive pricing in enticing customers to subscribe. Bumping the discount back to 10% resulted in immediate Subscription Count growth & surpassing the best month on record since enrolling in the S&S program.

‍

By running a 20% off first-time subscriptions coupon, this brand was able to see its most significant month-over-month increase in subscribers in the history of the account (December month-end subscription count vs January month-end subscription count).

‍

‍

Don’t Forget About That Flywheel

‍

Tunnel vision on Amazon is never a good thing; you’ll want to ensure your ads, whether AMS or DSP, are locked into these subscription strategies to maximize our targeting opportunities. 

‍

After moving to 20% off the first Subscribe & Save order in January, AMS Advertising Conversion Rate increased by nearly 15% over the previous 2 weeks.

‍

DSP drove over 7,500 new subscriptions over 6 months for $45 per subscription. As we continued to tweak and adjust targeting strategies, we were able to drive the cost down for new subscribers to $32. 

‍

Notable Amazon Ads FYIs for Subscribe & Save

‍

Amazon Marketing Services (AMS): AMS allows sellers to create targeted advertising campaigns to promote their products on Amazon. Sellers can use AMS to increase visibility and drive sales for their Subscribe and Save offerings. By strategically targeting relevant keywords and customer segments, sellers can attract subscribers to their products and, boost their Subscribe and Save enrollments.

‍

Amazon Demand-Side Platform (DSP): DSP enables sellers to reach customers both on and off Amazon by running display and video ads. Sellers can use DSP to increase brand awareness, drive traffic to their Subscribe and Save product listings, and retarget customers who have shown interest but haven’t subscribed yet. DSP provides advanced targeting options and analytics, allowing sellers to optimize their campaigns for maximum subscription conversions.

‍

Amazon Marketing Cloud (AMC): AMC is Amazon’s data management platform that allows sellers to leverage customer insights and behavior data to inform their marketing strategies. Sellers can use AMC to segment audiences, personalize messaging, and optimize their Subscribe and Save promotions based on customer preferences and buying patterns. By harnessing the power of AMC, sellers can create more effective and compelling Subscribe and Save campaigns that resonate with their target audience, leading to higher subscription rates and customer retention. AMC will give you more insight into Subscribe & Save data rooting from both AMS and DSP efforts.

‍

Testimonial from Love Wellness

‍

“One of the first things we approached DLVRD about was how to recover and build our SnS business. They created a well-thought-out strategy to take advantage of a high-traffic event in our category and drive loyalty and retention during this timeframe. Their team kept us at ease with reporting the main KPIs during the initial test and keeping a keen eye on not only the initial results but the lasting effects. With the combination of increasing the baseline discount and pulsing SnS coupons during strategic times, we saw amazing lasting results.” - Kate Kump, Amazon Manager - Love Wellness

‍

Key Takeaways for Sellers

‍

• Strategic Discounting: Setting an appropriate discount level is crucial for maximizing Subscribe & Save enrollments and driving sales. A discount of 10% has been shown to yield optimal results, balancing customer incentives with revenue generation.

‍

• Consistency is Key: Fluctuating discount levels can disrupt customer trust and undermine subscription uptake. Maintaining a consistent discount strategy fosters predictability and encourages long-term customer engagement.

‍

• Monitor & Adapt: Regularly monitor Subscribe & Save performance metrics and be prepared to adjust discount levels based on market dynamics and consumer behavior. Amazon enrolls products at a 0% discount & it is up to the seller to take the initiative here and increase the discount accordingly. Data-driven decision-making is instrumental in optimizing subscription revenue.

‍

• Drive Additional Subscription Growth: Offering enticing promotions, such as an additional % off coupon on first-time subscriptions, can substantially boost subscriber acquisition rates.  After implementing this strategy, the case study brand experienced its most significant month-over-month increase in subscribers. Utilizing targeted promotions not only attracts new customers but also encourages them to commit to recurring purchases through the Subscribe & Save program, amplifying overall subscription numbers and fostering sustained revenue growth.

‍

• Feed Subscription Momentum Leveraging Amazon Ads & AMC: By integrating these platforms into their Subscribe and Save strategies, sellers can effectively promote their products, drive subscription enrollments, and maximize customer lifetime value on Amazon.

‍

In conclusion, embracing Amazon's Subscribe & Save program presents a compelling opportunity for brands to cultivate repeat sales, enhance customer loyalty, and elevate brand visibility on the platform. By strategically leveraging discounts and maintaining consistency, sellers can unlock the full potential of this subscription model, driving sustainable growth and fostering lasting relationships with their customer base.

‍

Important links:

• Subscribe & Save Dashboard (increase your discount & monitor your results) 
• Create a Subscribe & Save Coupon (add an additional discount for first-time subscribers to amplify growth) 

‍