Today, we're calling out cart abandonment. Plus, the subscription business model continues to climb its way to the top.
Your top subscription news
PayPal x Honey
For $4 billion, mostly cash.
The acquisition, which is PayPal’s largest to date, will give the payments giant a foothold earlier in the customer’s shopping journey. Instead of only competing on the checkout page against credit cards or Apple Pay, for example, PayPal will leap ahead to become a part of the deal discovery process, as well.
Because we know over 75% of potential customers will leave a site without purchasing.
And the biggest contributor to abandoned checkouts is pricing discrepancy.
We’re talking unfactored taxes, handling fees, “extra” fees.
But fixing unexpected discrepancies in your pricing can quickly and dramatically increase your conversion rates.
Some metrics to help fight discrepancies:
- Heat maps and screen recordings
- Offering incentives
- Optimizing pricing
We’ve got an in depth piece on this if you want to take a look.
Be the PayPal… of your business.
More subscription sports
The Memphis Grizzlies have launched "Grizz Pass," an all-new ticket subscription plan that guarantees seats up to seven games per month.
For just $69, fans can access up to seven select games per month and are guaranteed one Terrace Level seat per game.
Grizz Pass subscribers will receive a text message seven hours prior to tip-off with a seat assignment. And fans can purchase up to four seats per account and can register their pass 24 to 48 hours prior to the first game of the month.
Which brings to mind a time when we sat down with John Mangini—ProfitWell subscription, pricing, and sports fanatic—for intel on the future of fandom.
"I think they should go not just subscription, they should go pure freemium. Let people in to the upper nose bleeds for free... Ultimately get them in the seats and start getting that engagement."
The Spotify for textbooks
Perlego, the textbook subscription service, has raised $9 million in Series A funding.
Pitched as akin to a “Spotify for textbooks,” Perlego enables students, and also professionals, who now make up 30% of users, to access textbooks on a subscription basis.
Publishers are already on board, with Perlego saying it sees a 116% increase in new subscribers month-on-month, though it isn’t breaking out subscriber numbers.
Which goes to show that subscription, as we know it, is the future we’re all destined for.
You'd be hard-pressed to find an industry that hasn't seen at least one subscription success story in the past few years.
Because recurring revenue models lead to higher revenues and stronger customer relationships.
This compounding growth is what makes customers so powerful here. Through subscription, customers become more valuable the longer they use your product.
Recurring Rhetoric: freemium
Freemium is an acquisition model, not a revenue model. We've recognized this for the better part of a decade, because too many people think freemium will somehow unlock their pricing, when in reality, freemium is an extremely difficult path to widening the top of your funnel to a flood of prime leads.
Take a look at our Freemium Manifesto, a deep dive into freemium and why you'll likely go free in the future.
And that’s a wrap for your November 25 subscription news. Recruit your teammates into the subscription know: recurnow.com to sign up for episodes on the daily.
If you have news to share, hit me up at firstname.lastname@example.org and we'll collaborate.