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Why are subscriptions essential for ecommerce business in 2021?

Published on 08/13/2021

Today, subscriptions have become a requirement for every ecommerce platform, but what are the perks behind them?

According to research, subscription clubs make at least BRL 1 billion yearly. However, Brazil being the fifth-largest country and the most populous in relation to payments, it is also the fifth-largest internet and mobile economy globally. While ecommerce businesses are on the rise more than ever before, there’s always a concern around customer retention and increasing customer churn rate. Customer churn reduction services use a wide variety of customer retention strategies that go way beyond the typical customer loyalty program to increase customer satisfaction and customer engagement. In this blog, get to know some tips to reduce churn and invest in a subscription model for your business.


4 reasons why subscriptions are important in Brazil and why you should invest in them

Around 50% of the online purchase are cross-border

Brazilians are fond of purchasing from international websites at a lower price, even if they have to wait a long time for the arrival of the product. However, in 2019, 19% of cross-border ecommerce users surveyed in Brazil said they had spent between 101 and 200 Brazilian reals on purchases made on international websites.

Brazilians are the most diligent social media customers globally

If you are planning to invest in Brazilian ecommerce, we have something exciting to tell you: On average, 74% of the population is accessing the internet. Also, it is the third-largest Facebook user base in the world after India and the US. Most importantly, 74% of internet users spend 3 hours and 45 minutes on social media daily. In addition, they are consuming content at a great rate, which ultimately results in increasing the number of sales with a wider reach.

Greater company value

A crucial question that any investor would ask is about the valuation of a company, right? Moreover, when your company has a consistent cash flow, you can easily showcase your earning capacity to investors. This will attract sound investors with a solid reputation for your company.

Capitalize the compounding value of the customer

The subscription-based economy is a valid deal with the sole concept of capitalizing the consumer value and reducing customer churn rate. The subscription-based model enables you to interact with consumers by receiving their feedback, keeping them updated about new payment-related offers, etc.


Written by Douglas Liantonio

Douglas Liantonio has been a strong SEO specialist and content writer since 2015. Being an expert in marketing and reducing B2B customer churn, he likes to elaborate on the unnecessary divide of B2B to person-to-person connections.

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