Dose #88: Default to the Subscribe and Save Option

Matt here with your weekly Subscription Prescription 💊

To default or not to default? This is the question we cover in this week’s dose: should you default to the subscribe and save option on your product pages? We dive into why this approach is so effective, the risks involved, potential benefits, and how you can derisk testing it for your brand.

Prefer listening to a podcast? This week’s dose is live for listening. The podcast goes more in-depth with examples and explanations, although I ramble more there than in the newsletter. ;)

Or give it a watch here:

How do you boost the number of subscribers you acquire?

In past doses I’ve covered some different ways you can boost subscription conversions with testing things like copy, images, pricing, and your offer.

These can work, and testing over time lets you unlock great growth. But there’s one technique that can work right away: defaulting to the subscription offer. This works better at conversions than anything but the offer itself.

All thanks to the psychology of having someone opt-out versus opt-in.

Opt-In Versus Opt-Out

Did you elect to be a donor when getting your driver’s license? When people are asked if they’d like to participate in the program, take rates average 10%. When people are opted in and can decide not to do it, take rates average 90%.

That’s because there’s an inherent psychological advantage to having someone have to tell you “No” instead of telling you “Yes.”

Brands I’ve worked on have seen conversions (% of customers that are subscribers) go from 10-15% beforehand to 30-40% (or higher) when utilizing this method.

Be Warned: There are Downsides

The problem with this method is twofold. Many people will not notice that they’re in a subscription, so it can increase the number of complaints and tickets you see. You may also see an increase in churn, as people are getting that first order and then canceling.

Both of these can be a big problem, but in most cases they can be offset by an increase in subscribers. Let’s say, for example, you normally acquire 100 subscribers per month. Churn averages 20% month 1, so going into month 2 you typically keep 80 subscribers.

If you could now acquire 150 subscribers per month by defaulting to the subscribe and save option, how would that look for your business? Let’s say churn in month 1 jumps to 30%.

150 subscribers * 30% = 45 subscribers you lose instead of 20. But you keep 115 subscribers (instead of 80) heading into month 2.

That’s a big jump! 

Focus on Boosting Revenue Per Subscriber

To double-down on this opportunity, consider how you upsell subscribers once they reach month 2 or 3 on their orders. Can you find some bundles, popular products, or offers to make your subscribers? That will take the increase in conversions to another level of profitability.

Remember the goal of any great subscription program is to identify who our best - and most valuable - subscribers are. Acquiring more each month - even if we’re losing them at a higher rate - is a great step in that direction.

Ways to Test This

You don’t have to flip everything over if you’re worried about the risks. Although if you’re selling a single SKU or small in size (few than 500 subscribers) I would consider a complete switch to keep testing simple.

You can setup special landing pages or test certain products to see how customers respond, both on conversions and with churn over time. Be sure to properly tag these items so you can differentiate on reporting.

Final Tips for Defaulting to the Subscribe and Save Option

More than just the default option, ensure that you clearly show the price difference between the two. Show subscribers that they can pause, skip, or cancel at any time. I like this example from Obvi’s site to illustrate the point:

You can make it easy to see they’re on the subscribe and save option with all the reasons to keep that option selected!

That’s it for this week’s dose! Stay tuned for Dose #89 next Tuesday.

- Matt Holman 🩺

The Subscription Doc