Subscription watch retailer Wrist Mafia boosts key subscriber metrics
A subscription brand for wristwatches is making its customers an offer too good to refuse – with the help of a new third-party solution.
Wrist Mafia has increased its subscriber base by over 60% and subscriber lifetime value (LTV) by 100% after migrating its subscription experience to the Ordergroove subscription management platform. Founded in 2017, Wrist Mafia partners with popular brands including Timecraft and Maestro to send subscribers a “mystery watch” on a monthly basis.
The retailer selected Ordergroove because the solution fully integrates with the Shopify e-commerce platform, enabling a seamless subscriber enrollment experience that has driven conversions by reducing checkout times.
The retailer also based its decision on Ordergroove’s prepaid subscription technology, which offers consumers the ability to prepay up-front for longer-term subscriptions.
One week after launching Ordergroove, Wrist Mafia’s subscriber acquisition rate increased by 15%. After three months, Wrist Mafia’s subscriber base grew by 63%. In addition, the LTV of Wrist Mafia subscribers enrolled in a prepaid, six-month subscription is 100% greater than subscribers enrolled in a pay-as-you-go subscription.
“With customer acquisition costs skyrocketing, we needed to get the most out of every opportunity to gain a subscriber,” said Wrist Mafia co-founder Johnny Brown. “Ordergroove’s subscription platform gives shoppers the seamless checkout experience they crave, ensuring we aren’t throwing money away on a poor user experience.”
“Wrist Mafia’s growth is phenomenal, and their subscriptions are a blueprint to succeed in today’s challenging e-commerce environment,” said Greg Alvo, CEO and founder of Ordergroove. “They understand a frictionless subscriber experience paired with prepaid subscriptions drives higher customer lifetime value. We can’t wait to help all of our customers achieve the same success.”
Subscription retail had a healthy 2022
The new “Recharge 2023 State of Subscription Commerce” report reveals that overall, the subscription retail industry showed improvements in five key performance indicators during 2022. These were average order value (AOV), lifetime value (LTV), monthly recurring revenue (MRR), customer retention, and customer churn.
On average, the subscription retailers analyzed by Recharge saw a 12% year-over-year (YoY) growth in LTV; 11% YoY growth in AOV; and 7% YoY growth in MRR. Retailers with subscription offerings in the study had an average customer retention rate of 45% retention after six months and 33% after 12 months (these figures are compared to 20% average customer retention rate after 200 days for e-commerce retailers in general).
In addition, the study found that flexible subscription offerings increased in 2022, with 35% of participating consumers on average adjusted their orders with a subscription retailer at least once during 2022. Of subscribers who made changes to their orders over the course of the year, 39% skipped an order.