Subscription eCommerce Statistics (By Revenue Drivers)

We're highlighting important subscription eCommerce statistics that all Shopify brands should know — relating to average order value, churn rate, & more.

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    Let’s talk statistics. 

    After all, making decisions informed by data is one of the best ways to grow your subscription eCommerce brand. In addition to collecting and analyzing your own Shopify brand’s numbers, it’s also useful to look at industry trends and typical consumer habits to ensure you’re optimizing your business. We’re breaking down and categorizing subscription eCommerce statistics that you should know — from Average Order Value to personalization.

    Average Order Value (AOV) Statistics

    Average Order Value tracks the average amount of money consumers spend on each order. To calculate AOV, simply divide your brand’s total revenue by the total number of orders. 

    As you’re strategizing to increase your AOV, here are some statistics to know:  

    • Customer loyalty programs can increase Average Order Value by about 14%. (Source)
    • 54% of retailers reported that product recommendations were a key driver of AOV. (Source)
    • 90% of online customers said that free shipping motivated them to purchase more. (Source
    • In 2020, 80% of eCommerce businesses in the United States reported that using cross-selling and upselling helped increase sales. (Source)

    Repeat Purchase & Customer Lifetime Value (LTV) Statistics

    Subscriptions are fueled by repeat purchases — which help drive your brand’s customer lifetime value (LTV). 

    As you’re looking to boost your retention and thereby drive up your LTV, consider these numbers:

    • 76% of companies see LTV as an important concept for their organization. (Source)
    • A 5% increase in customer retention is associated with a 25% to 95% increase in earnings. (Source)
    • Returning customers spend on average 61% more than new customers. (Source)
    • The probability of selling to an existing customer is between 60 and 70%, whereas the probability of selling to a new customer is only 5 - 20%. (Source)
    • 53% of customers who purchased a second product from a brand come back to purchase a third, and 64% will proceed to purchase a fourth. (Source)
    • 53% of responders to an IBM survey reported a simpler pause or cancellation process could sway them to sign up for a subscription in the first place. (Source)
    • 64% of subscribers feel more connected to companies where they have a subscription versus companies where they have one-off transactions. (Source)
    • Studies show that customers spend 67% more when they are part of a loyalty program. (Source)
    • Repeat customers are worth 22X more than average customers. (Source)

    Churn Statistics 

    On the flip side of retention is churn, otherwise known as when a consumer makes a purchase and then opts not to buy again. 

    The churn rate formula is calculated by considering the customers at the start of the period, subtracting customers at the end of the period, and adding any new customers acquired in the period — then dividing that all by customers at the start of the period. 

    The goal should be to reduce your churn rate however you can — and here are some statistics to help you do so:  

    • The average monthly churn rate for subscription businesses is 6.12% — though B2C companies tend to experience more churn than B2B companies. (Source)
    • Up to 48% of subscription churn is caused by failed payments. (Source)
    • The overall profitability of a business can increase by 25 - 125% when the churn rate is reduced by 5%. (Source)
    • It is generally 5 to 25 times cheaper to retain a new customer than it is to acquire a new one. (Source)
    • 82% of US consumers stopped buying from a business after a poor customer service experience. (Source)

    Personalization Statistics

    One of the most necessary components of marketing, especially when it comes to subscription marketing, is prioritizing personalization — which the majority of consumers are expecting nowadays.

    Here are some personalization statistics to know:

    • 75% of US consumers report that they’re loyal to companies that understand their individual needs. (Source)
    • 83% of consumers reported that they were willing to share information in exchange for a more personalized experience. (Source)
    • Personalization typically results in a 10 to 15% revenue boost, and DTC brands in particular drive even more revenue from personalization (about 25%). (Source)
    • 80% of consumers are more likely to buy something if they’re offered a personalized experience. (Source)
    • 56% of online buyers report that they’d go back to a website that personally recommends products. (Source)
    • 71% of consumers expect brands to deliver more personal interactions. (Source)

    Social Proof Statistics

    Subscription eCommerce Statistics Social Proof

    Social proof. It’s a hot topic among marketers and DTC founders alike. At the end of the day, appealing to people requires understanding people. One habit that’s important to understand is our tendency as humans to look to others as a way to inform our own behavior. 

    This comes into play with referrals, reviews, recommendations, social media, and more. 

    Here are some statistics that show social proof in action:  

    • 88% of consumers trust user reviews as much as personal recommendations. (Source)
    • Conversion rates increase by 380% when higher-priced items are paired with positive customer reviews. (Source)
    • Businesses earn $6.50 for every $1 they spend on influencer marketing campaigns. (Source)
    • 87% of purchase decisions start with online research before going through with the purchase. (Source)
    • The average consumer reads about 10 reviews before making a purchase. (Source)
    • 73% of visitors would rather read written reviews instead of seeing star ratings. (Source)
    • 68.4% of consumers that received a gift subscription continued their subscription. (Source)
    • 82% of people trust social networks to guide purchasing decisions. (Source)
    • Customers acquired via referrals have a 37% higher retention rate and a 16% higher customer lifetime value. (Source)
    • Customers who are referred are 4X more likely to refer their friends. (Source)

    Having a clear grasp of subscription statistics is an important part of running a successful eCommerce business, whether you’re just starting out or trying to expand your reach. 

    Want a closer look at the stories behind the statistics? Check out our Smartrr case studies.