A Secret Hack Subscription Box Companies Can Use To Increase Lifetime Value

There’s a saying in the marketing world that goes, “the company that can pay the most to acquire a customer always wins.” There is no industry where this is truer than the subscription box industry. With acquisition costs rising, and LTV being the main KPI that all companies are looking at, you need to do everything in your power to improve this metric.

Today I want to share a little hack that can instantly improve your LTV…

What’s the marketing channel with the highest open rates?

Email?

Text?

Chat bots?

Wrong.

It’s your packaging.

Your packaging has close to 100% open rates, so it’s the perfect opportunity to set your customers up for an up-sell.

You see, if you’re relying on email for up-sells and cross-sells and you’re only getting 50% open rates (if that) on your emails, you’re leaving a ton of money on the table. There’s a better way to do it.

Like I said, packaging has close to 100% open rates, but the problem is that you can only hit people once a month with messaging here. So instead of relying on up-sells here, it’s a great opportunity to funnel people onto your text messaging marketing list, which is the next best channel in regards to open rates.

Include a sticker on each box that says something like “WAIT! Before you open this package, text {INSERT COMPANY NAME HERE} to 41996 for a special surprise!”

You can make the “surprise” whatever you want it to be - something that makes sense for the context of the situation. Maybe it’s an on-boarding video or a link to a Facebook group.

The important thing is that you now have the ability to message your members whenever you want at close to 100% open rates.

This strategy works phenomenally well if you want to up-sell members onto premium products, want to run win-back campaigns, or want to try to upgrade them to a long-term membership.

Give this a try and watch your LTV skyrocket!

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Steve KrakowerComment