The State of Subscription Commerce 2021 Report

Utilizing proprietary data available to us as one of the largest subscription platforms currently in eCommerce, Recharge has compiled an in-depth subscription industry report. Visit our landing page to download the report and dig into the insights, available now.

About the report

The data in this year’s annual State of Subscription Commerce report illustrates just how much of an impact the factors in 2020 had on merchants across every vertical and every geo. 

In analyzing the impact of 2020 as it relates to 2019, we found a common thread among the merchants that saw incredible growth: These merchants were able to pivot to meet their customers where they were, giving them the options they needed and when they needed them. Some customers became unemployed overnight and had to temporarily cut back, while others explored new ecommerce brands they had never before considered. 

We observed that flexibility in the shopping experience drove the success of top-performing merchants. Whether it be in the ability to pause a subscription, swap products, or offer one-time purchases. This report explores the data points behind these trends to provide insights into how merchants can increase a customer’s lifetime value (LTV) by meeting them where they are.

Comparing reporting metrics

The State of Physical Subscription Commerce contains a number of industry data trends, but the real value for merchants is comparing the benchmarks against their own data. With the recently released Recharge Analytics, you can access the same data and compare your store's average to the report.

Glossary

The State of Physical Subscription Commerce Report uses a number of industry acronyms, here is a quick refresher on the frequently used terms.

AOV

Average Order Value - the average amount spent by a subscriber during checkout. 

Churn

The rate of customers who cancel their subscriptions. Usually expressed in a percentage, the number of customers canceled over your store's total number of customers in a time frame.

MRR

Monthly Recurring Revenue - the total number of income generated from subscription sales over a month period.

LTV

Lifetime Value (LTV) is defined as: Average Recurring Revenue Per Customer (ARPC) * Average Lifespan of All Customers

Additional Resources

Skimming through data trends can be useful, but the real value to your bottom line starts when you put your newfound insights to use. Here are a few articles to help you get started.

• Dr. Axe Case Study - Increase lifetime value by building a stellar UI/UX in the Customer Portal using the Theme Engine.
• Why Investing In Your Customer Portal Can Improve Retention - Decrease voluntary churn by using the skip and swap features as well as implementing retention strategies.
• How & Why You Need To Improve LTV:CAC - Increase average order value of subscribers by implementing One-Time Products into the Customer Portal.
• How Reducing Customer Churn Impacts LTV and CAC - Reduce involuntary churn with apps that integrate with Recharge.