Table of Contents
Today’s customer doesn’t want just a product. They buy into a compelling service that adds value to their lives. If a business is able to find that special offering — something that makes their customers tick — they can maximize their ROI by implementing subscriptions. When implemented correctly, subscriptions will boost revenue, build customer loyalty and, in turn, spur a higher ROI.
This article is for you if:
- You’re a Magento e-commerce merchant (or are thinking about becoming one).
- You are looking to achieve a higher ROI with a predictable revenue stream.
- You want insight on how to provide your customers with convenience, flexibility and unique personalized experiences.
- You would like to speak to an e-commerce expert about generating recurring revenue.
In the last decade, companies have been flocking to subscriptions — some as a way to differentiate themselves, and others for growth opportunities. Salesforce, a cloud computing company, was among the first companies in modern times to leverage a recurring revenue model by offering software subscriptions. Since then, organizations in other industries — food, fashion, beauty, etc. — have realized the culture of their customer base has evolved from a preference to own to a preference to rent.
In his book, The Subscription Boom: Why an Old Business Model is the Future of Commerce, Adam Levinter explains why a centuries-old sales strategy is making a comeback. After all, books and periodicals were leveraging recurring revenue 400 years ago.
“While recurring revenue is attractive, subscription also provides predictive cash flows, better inventory control and juicy customer lifetime values — all while avoiding the volatility of a typical boom-and-bust product cycle. Most importantly, subscription creates better customer loyalty by building a relationship between brand and customer. A traditional model means a brand must go to great efforts to re-engage a customer to make a repeat purchase,” Levinter explains in the book.
A reliable stream of recurring revenue is an obvious reason why any merchant would want to latch onto subscriptions. You can read more about ways to increase MRR in the previous article. However, customers benefit in many ways as well.
- Convenience: Subscriptions allow customers to “set it and forget it.” With automatic recurring orders, they do not have to remember to place a new order for items they need and love. Instead, it just shows up on their doorstep.
- Flexibility: The best subscription merchants give their customers the ability to adjust their subscriptions to suit their needs. This comes in the form of flexible recurring billing options and terms, as well as control over their subscription.
- Staying on budget: If the customer is paying a flat fee, there is no chance for unpleasant surprises
- Bundling: In some cases, merchants are able to bundle products together in one subscription order, offering a discount on the total price.
- Unique personalized experiences: By studying consumer habits, merchants can cater to their customer’s interests (sometimes even surprising them with a product or service they didn’t realize they would enjoy).
A Higher Business Valuation is Tied to Higher ROI

- Replenishment subscriptions automate purchases for the consumer, whereby offering convenience and saving them time.
- Access subscriptions take advantage of bundling. Just think about Netflix and Spotify. These companies provide customers with access to endless entertainment for one low price.
- Curation subscriptions, which are also the most popular type (making up 55% of total subscriptions), bank on unique, highly personalized experiences. They eliminate the scenario where the consumer is presented with too many options and is then unable to make a choice. By studying their customers’ behavior, they are able to delight them with a service that is specifically tailored to their preferences. Such examples can be seen in the apparel, beauty and food industries with companies like StitchFix, Birchbox and Graze.
Can Magento Really Help Generate a Higher ROI?

- Magento is owned by innovative tech-giant Adobe — which means more advancements are on the horizon.
- The platform offers customization options, so you can preserve brand integrity while providing a stellar customer experience.
- It’s a feature-rich platform.
- Magento is easily integrated with CRMs like Salesforce, and there are many extensions available in the Magento Marketplace to expand functionality.
- Magento accommodates merchants that plan to scale.
- Educational opportunities and certifications are available through Magento U.
The Elephant in The Room
While Magento has a lot to offer, the platform does not natively offer a way to manage complex recurring orders. So, how can a Magento merchant achieve higher ROI through subscriptions?
PowerSync’s product — mPower Subscription Management for Magento — makes it possible. Feel free to read our previous blog post for an in-depth look at mPower, but to sum it up:
- It is architected, designed, and supported by a company that uses the product itself.
- It takes into consideration the merchant as well as the shopper to provide the best experience for both.
- Shoppers can manage/modify subscriptions without having to go back through the purchasing process.
- mPower supports many different subscription business models.
- It meets the needs of various niche industries.
Additionally, PowerSync offers a subscription management solution for Salesforce, so Magento merchants who use the world’s leading CRM can also take that route to manage their recurring orders.
If you want to see our powerful and dynamic subscription management solutions for Magento and Salesforce, watch the demos below. We also invite you to schedule a complimentary call with one of our e-commerce experts to get subscription business advice and discuss a potential fit.