What EA Sports Can Teach eCommerce About Retention
/E-commerce – 2019
/E-commerce – 2019
The secret to eCommerce retention
In the world of gaming, EA Sports has become synonymous with recurring revenue and customer retention. Their revenue model, particularly through games like FC 24, is a masterclass in keeping customers engaged and spending year after year.
For eCommerce businesses, there’s a lot to learn from EA Sports’ approach. By understanding and applying similar strategies, you can build a loyal customer base, implement effective subscription models, and drive sustained growth for your online business.
“Recurring revenue is the holy grail for many businesses, providing a predictable income stream that can fuel growth and stability."
The Importance of Recurring Revenue in eCommerce
In eCommerce, building a model that encourages customers to make regular purchases, whether through subscriptions, memberships, or other means, can significantly enhance your profitability.
– Predictability: Recurring revenue allows you to forecast income more accurately, which is crucial for budgeting and planning.
– Customer Lifetime Value (CLV): By encouraging repeat purchases, you increase the lifetime value of each customer, maximizing the return on your initial customer acquisition costs.
– Business Stability: With a steady stream of recurring revenue, your business is less susceptible to the ups and downs of seasonal sales or market fluctuations.
For eCommerce businesses, creating a recurring revenue model involves not just offering a great product but also providing ongoing value that keeps customers coming back. EA Sports does this through regular game updates, special in-game events, and exclusive content, all of which encourage players to stay engaged and spend money over time.
Customer loyalty is the foundation of any successful recurring revenue model. EA Sports has mastered this by understanding what keeps their audience hooked. Here are some strategies you can apply to your eCommerce business:
– Personalization: Tailor your offerings to meet the specific needs and preferences of your customers. Personalization can be achieved through product recommendations, targeted email campaigns, and exclusive offers.
– Engagement: Keep your customers engaged with regular communication, whether it’s through newsletters, social media, or loyalty programs. The more involved your customers feel with your brand, the more likely they are to stay loyal.
– Exclusive Access: Offer exclusive products, early access to sales, or members-only content to reward your most loyal customers. This not only incentivizes repeat purchases but also creates a sense of belonging and community around your brand.
Just as EA Sports releases new content and updates to keep players engaged, your eCommerce business should focus on delivering consistent value to your customers, whether it’s through new product releases, improved services, or exclusive offers.
Subscription and membership models are proven ways to create recurring revenue and build a loyal customer base. EA Sports has effectively implemented these models through features like FIFA Ultimate Team (FUT), where players purchase packs and content regularly.
Elysian Coffee's Successful Subscription Model
One of our clients, Elysian Coffee, provides a prime example of how to successfully implement a subscription model in eCommerce. Elysian Coffee offers high-quality, ethically sourced coffee through a subscription service that delivers fresh beans to customers’ doors every month.
We partnered with Elysian Coffee to build their Shopify store and implement their subscription model. The result? An outstanding online experience that not only showcases their premium product but also makes it easy for customers to sign up for a subscription. Thanks to their commitment to quality and our strategic implementation, Elysian Coffee enjoys an impressive 90% returning customer rate. This success demonstrates the power of a well-executed subscription model in driving customer retention and recurring revenue.
