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Monthly recurring revenue is eclipsing traditional business models. If you struggle to find a way to join the traditional subscription economy, there are still a few things you can do to generate reliable monthly recurring revenue.
Recurring revenue is a major asset for companies that leverage subscription business models. These are businesses that offer products or services on a repeat basis (whether weekly, monthly or annually). During the past several years, subscription companies like Netflix and Ipsy have become household names. While Netflix offers its tiered TV and movie streaming and Ipsy sends monthly beauty products, their models are rooted in the fact that their customers are willing to continue to pay for their services month after month.
Is monthly recurring revenue still possible for your business if you don’t fall into the cookie-cutter subscription mold?
Cases When You Need to Increase MRR
The obvious conclusion of why you need to boost monthly recurring revenue is deceptive. Let’s take a look at the more profound reasons. This article is for you if you want to:
- Low CAC (Customer Acquisition Costs) while increasing CLV (Customer Lifetime Value). This will help you to spend less in customer engagement.
- Reactivate e-commerce customers effortlessly. Loyal customers are already more likely to buy the product or service again.
- Get a unique solution for your MRR. You own a business that can’t offer cookie-cutter subscriptions.
- Get customers who would like to repurchase the same things monthly. This way, you can spend less money on attracting buyers.
- Increase MRR without joining the saturated subscription box marketplace. In this way, you can remain competitive in an overwhelmed market.
But how can you get more profit? Now, when you are aware of the reasons why you need the improvement of your revenue, you can find out about the ways to increase MRR.
What is Monthly Recurring Revenue?

- 77% of the surveyed retailers believe the recurring revenue model is a prerequisite for doing business
- 65% report that regular customers provide higher profitability
- 49% report an increase in customer retention
1. Quick-Buy or One-Click Ordering

2. Auto-Replenishment

3. Membership Programs

The third model that can add not just monthly, but annual recurring revenue is the ever-popular membership program.
The retail membership trend started in the 90s from big-box retailers like Costco and Sam’s Club. These stores give customers dramatic discounts when they buy products in bulk. Today, membership models have expanded from physical shopping shelves to the online marketplace.
This type of membership program is also called a green fee model. The customer pays a monthly, quarterly or annual fee to grant exclusive shopping experiences such as discounts and promotions.
How do membership programs encourage customers to purchase from your retail store again and again? Let’s say you sign up for a membership to an online marketplace. Your perks include free shipping and various discounts, depending on the total amount of your purchase. To reach the required amount for discount and free shipping, you will likely buy items in bulk. Sure, you can buy items from other stores, but because you paid for the membership, you are going to maximize it by shopping with that brand.
Amazon Prime is a popular example of a green fee subscription model. Its membership perks include free shipping, video streaming and Amazon Prime reading. The membership benefits give customers a sense of exclusivity, making them think that they benefit more than other customers. Since the launch of Amazon Prime, the company has reached 100 million subscribers globally.
What We’ve Learned
Even if you are managing a retail business, you can still find out how to increase your monthly recurring revenue by applying recurring revenue models that fit your business industry. Not quite convinced yet? Here is a list of benefits you will reap by practicing the approaches:
- Greater revenue
- Greater profitability
- Increased customer loyalty
- Greater revenue predictability
- Ability to upsell customers
- Reduced customer acquisition costs (cost of marketing, sales, etc.)
- Cost savings from accurate inventory forecasting
Today’s buyers don’t consider cost alone. They are driven by their customer experience with a brand and convenient shopping experiences. Modern retail businesses that find ways to incorporate recurring revenue are able to focus their energy on extending customer lifetime value rather than constantly striving to acquire new customers.
Start Adopting a Recurring Revenue Model

- Managing recurring payments, customer profiles, and subscription products
- Reporting high-level business outcomes
- Modifying customer preferences
- Automating merchant and customer notifications
FAQ
MRR is your company’s constant income from selling services or products to the customers.The important thing is that this is a number that you can always expect as your revenue. For example, if you steadily have 100 purchases per month that cost $100, your MRR will be $10,000.
Among all the options remember the three ways to increase monthly recurring revenue:
✅ One-click ordering that saves your customer’s time.
✅ Auto-replenishment for automatic order process.
✅ Membership programs that gives benefits to your customers.
Therefore, you can increase the loyalty of your buyers, provide them a CLV (Clients Lifetime Value) and grow your eCommerce business.
You need to calculate your current MRR and determine your goals. After that, you can choose the way to improve MRR. Here are more details:
✅ Analyze your current revenue to find the weaknesses
✅ Understand what the TA does not like about your offer
✅ Get quality leads by providing better user experience
✅ Check out the subscription program to decide what can be improved
If you still have doubts, contact PowerSync via this form and get answers for all your questions on how to boost MRR.