4 Subscription strategies that double renewal and increase annual revenue by up to 40%

Businesses that have adopted the subscription model with well-defined recurrence strategies have been able to double the renewal rate of customers and increase average annual revenues by up to 40%, according to the company's analysis Betalabs Technology. The survey involved more than a thousand companies from different sectors that use the company platform for recurring sales.

For Luan Gabellini, co-founder of Betalabs and a specialist in recurring sales, subscription is a model capable of transforming the relationship between brand and consumer.“More than selling every month, it is about offering convenience, security and a sense of belonging. Companies that invest in continuous relationship and exclusive experiences retain customers for much longer”, he says.

Check out the 4 essential strategies to sell every month without relying on constant promotions:

1. Transform product or service into plan
You can not sell recurrence if the customer does not understand what you are signing. The first step is to create clear plans, whether monthly delivery of products, access to a service or exclusive benefits.It needs to look like a real subscription, not just a installment sale.

2. Offer annual plan with installment
This is a key turn: when the customer closes an annual plan in installments of 12x, the business gains revenue predictability and the customer becomes more engaged. This reduces the cancellation rate and increases LTV without the need for aggressive discounts.

3. Create sense of community or belonging
When the customer feels they are part of something bigger, such as an exclusive club, early access, giveaways or VIP content, they value what they are paying for more and keep paying.

4. Use technology to keep the relationship alive
There is no point signing and disappearing. The brands with the highest retention are those that use relationship rules, personalized notifications and make the customer constantly remember that he is receiving value for what he pays.

According to the Brazilian Electronic Commerce Association (ABComm), the subscription club market in Brazil grew 32% in 2023, reflecting changes in consumer behavior and the search for more convenience and customization. To support companies that want to take advantage of this trend in a sustainable way, the Betalabs developed a free guide with the main strategies adopted by recurring businesses.

The content, based on real data from more than a thousand companies, is available on the company's blog and Instagram.“We created this material to show that selling by subscription is not just a trend, but a solid model that requires strategy, relationship and long-term vision”, he says Gabellini.