Better Together: Maximizing CLTV with Combined Subscription & Loyalty Programs

Subscriptions and Loyalty can both be powerful tools to increase retention. But together? It’s the secret recipe to a loyal customer with a maximized lifetime value. Executed properly, your customers will never have a reason to shop anywhere else.

Part I: Introducing the Solution 

We know your goal: to build a loyal customer base that keeps coming back. Repeat customers drive more value for your business by saving time, reducing marketing costs, and serving as advocates who champion your brand. They’re the life blood of a thriving ecommerce brand. 

So where to begin? For most e-commerce operators, the answer is a combination of subscription and loyalty programs. And if you’ve implemented them, you recognize their potential, but success depends on strategy and execution. 

Offering subscribe & save options is one thing; getting a customer to opt-in is another. Similarly, offering rewards seems simple, but the challenge is creating awareness and engagement so customers see genuine value.

This guide shows how to combine subscriptions with loyalty programs to maximize Customer Lifetime Value (CLTV). No silos, no confusing customer journeys– just a seamless membership-like experience that gives customers every reason to stay. 

By the end, you’ll have the insights and actionable strategies to create this experience and the metrics to back it up.

‍Why it’s important for your business + how they work together: 

And we can’t understate the importance for your business of mastering the subscription + loyalty program combination. Why you may ask? Let’s look at the numbers from Smartrr’s research: 

A customer with a subscription has a 185% higher CLTV than a regular single-purchase customer. 

If that same customer has also engaged with a loyalty program (e.g. redeemed loyalty points, made a referral, etc.) on average, their CLTV increases by an additional 88%. This is not a small impact on business! 

When executed together, these:

• Drastically reduce customer churn
  • They motivate customers to stick around, ensuring they take full advantage of their hard-earned points and maintain their status through continued purchases.
• Make customers feel valued
  • Loyalty programs paired with subscriptions show customers they’re appreciated while giving them more bang for their buck. It’s a win-win—customers feel rewarded, and their purchases go further.
• Elevate the customer experience and journey
  • When combined properly, subscriptions and loyalty feel like a true membership experience that feels tailored to each individual customer

However, when setting up your programs, there are proper ways to combine the programs so that they work together to maximize success. 

Our guide will show you how to implement these strategies the right way to see these results and grow your business. 

Part II: Guide to Execute

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1. Understand your customer and their buying journey

To find the right loyalty subscription program, start with a deep understanding of your customer and their buying journey. By understanding their needs and preferences, you can design a program that consistently delivers value and builds lasting relationships  

Here are some things to consider: 

• Do you know what they are motivated by? Are they trendsetters excited by exclusive product launches? Or budget-savvy shoppers who value deeper discounts or milestone perks?
• Why and when do they churn? Are they sticking around or one and done? Is churn a result of the product or something else?
• What parts of the brand do they love/engage with most? Is it the results they see? Or maybe they love trying new products you launch? Get to the root of why people love (or hate) you. 

Here are some ways to dig in:

• Post-purchase surveys 
• Cohort analysis 
• Website analytics 
• Behavioral data like abandoned carts

‍2. Determine what you can offer

Start by identifying what you can offer to your customers in exchange for their loyalty. 

What makes economic sense for your company? Can you afford to entice customers with discounts? Balance your goals with the value of loyalty points to your company. 

Consider many types of offers:

• Bundles for multi-product purchase 
• Discounts for prepaid subscriptions 
• Buy one, get one free offers 
• Exclusive gift with purchase  

Important Reminder! 

Outstanding loyalty points are a liability and must be reflected on your balance sheet. The goal isn’t just for customers to accumulate points but to actively redeem them—driving engagement, repeat purchases, and turning those points into real value on your bottom line. 

Ways to get creative:

Can’t give out too many discounts? Think out of the box with events and content: 

3. Craft your subscription offer

This is where many brands stumble—offering a discount and calling it a day. But ask yourself: if the discount disappeared, would people still subscribe? If the answer is no, it’s time to rethink your strategy.

Create a membership-like experience: 

• Keep things exclusive with member-only discounts and experiences 
• Highlight the benefits frequently  
• Add tiers for aspirational rewards 

‍Tip! Offer an immediate incentive. ‍

Can you offer something extra valuable at sign-up?  Make it as easy as possible for them to hit “join" that first time—it’s an investment that pays off in the long run.‍

Here are some ideas to lure them in:

4. Merchandize your program everywhere

Merchandising your subscription loyalty rewards is just as important as showcasing your products. Once your subscription and loyalty programs are running together, treat them as a complete package and make sure they’re front and center throughout the entire buying journey—from first touch to post-purchase. 

A map for strategic merchandising: 

• Homepage banner 
• Prominent placement on the product description page 
• Custom landing pages upon log-in based on tier 

Awareness campaigns ideas:

• Email/SMS campaigns showcasing program value 
• Packaging inserts promoting missed rewards 
• Referral challenges for existing members 
• On-site pop-ups on the website 
• Personalized anniversary emails or year-end savings report

5. Communicate often, and most importantly, at the right time

Keep your loyal subscribers engaged—don’t let them feel forgotten. Regular, thoughtful communication is key. 

Here’s how: 

• Leverage email and SMS to share important updates like exclusive promotions and points redemption opportunities. 
• Get creative during peak shopping periods with must-read, value-driven content 
• Remember the VIPs: remind members of their exclusive value 

‍Tip! Use customer data to pinpoint moments when churn might occur.

• Are there patterns in their buying habits or subscription activity that indicate a lull? 
• Schedule timely, personalized messaging during those windows, reminding them of their unused points, exclusive perks, or even opportunities to multiply their rewards. Thoughtful touchpoints like these can turn at-risk customers into long-term loyalists.

6. Simplify the customer experience

After all the effort you’ve put into building your subscription & loyalty program, make sure it’s easy for customers to understand and use. Keep everything clear, intuitive, and centralized. Ideally, customers should have a single place to manage their subscription and points, reducing labor intensive support tickets.

Must-haves: 

• A visual tracker of growing rewards
• Keep subscriptions and loyalty management in the same place 
• Make log-in easy and don’t hide the portal 

Tip! At check-out, loyalty deals and coupons should pop up automatically, eliminating the need for code hunting.

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7. Optimize your program

Once your subscription and loyalty program is live, the real work begins: analyzing the data and making adjustments. If a specific incentive isn’t as “sticky” as you hoped, don’t hesitate to swap it out for something more compelling. If churn starts to occur at a new point, adapt your messaging or adjust the offer to keep customers engaged and onboard.

Ways to assess and adjust: 

• Create a cohort analysis focused on your subscribers 
• Run A/B tests on communications to identify effective messages and formats
• Implement hold-out tests to measure the impact of specific offers 
• Track your CLTV to measure success

‍Bonus tip!‍

If you’re unsure where to start with creating an integrated subscriber and loyalty program that’s both appealing to customers and efficient for your business, Smartrr has you covered. It’s the only technology that seamlessly combines subscription management and loyalty tools in one platform. With best-in-class features, Smartrr allows shoppers to manage their subscriptions, track rewards, and see everything merchandised throughout their buying journey—all from a single login. It’s a streamlined solution that benefits both your customers and your bottom line.

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Conclusion

While it’s no small feat, we hope this guide provides your company with a clear path to maximizing customer lifetime value . In today’s competitive market, data shows that integrating both subscriptions and loyalty programs is key to keeping customers engaged and satisfied. When you make subscribing attractive and clearly showcase its value, customers will stay loyal, making it harder for competitors to lure them away.

And no matter whether you’re starting from two separate programs or building from scratch, the time invested in educating your customers and getting them onboard will pay off over the long term. As they accumulate points and deepen their relationship to the brand, you’ll see the lasting rewards– not just in their continued engagement but in their growing commitment to you.

If you’re ready to take the next step, feel free to reach out to the Smartrr team today. We can walk you through the process and show how this cutting-edge approach can transform your business.

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