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Loyalty points vs subscribe and save

By cartscaling Reviewed

Choose by how predictable the next order is. If customers buy the same item on a rhythm you could put in a calendar, a standing order at a better price removes the decision entirely and is worth more than any points balance. If they buy different things at unpredictable intervals, points suit them better, because the reward follows spending rather than a schedule they cannot keep.

The two also differ in what they cost you. A standing order gives a discount on every future purchase, which is expensive but buys certainty. Points cost nothing until they are redeemed, and a share of them never are, but they only influence behaviour if customers can see the balance and reach a reward within a realistic number of orders.

A store with one hero consumable should build the standing order. A store with a wide changing range should build points, and spend the effort on making the balance visible rather than on the size of the reward.

Choose

Loyalty points

when

  • Customers buy across a varied range rather than repeating one item
  • The gap between orders is irregular and no schedule would suit everyone
  • Your range changes with seasons or drops, so choice is part of the appeal
  • You want to reward reviews, referrals and sign ups as well as orders
  • Margin cannot support an ongoing reduction on every future order

Choose

Subscribe and save

when

  • One or two products account for most repeat orders
  • Consumption is steady enough to predict the next order within a week or two
  • Running out is a real inconvenience the customer wants to avoid
  • You can hold stock and ship every cycle without substitutions
  • The saving matters more to your customers than choice does
CriterionLoyalty pointsSubscribe and save
CostOnly paid when points are redeemed, plus the platform feeA standing reduction on every future order, from the first cycle
Setup effortEarning rules, redemption, balance shown in the account and in emailPlan pricing, cycle management, skip and pause, failed payment handling
Time to signalMonths, since the effect appears in the second and third orderTwo to three cycles, so weeks for a fast moving consumable
ControlYou set what is rewarded and can adjust earning ratesRevenue is predictable, but customers control when they leave
Best forWide catalogues, seasonal ranges, discovery led shoppingSingle hero consumables, replenishment categories
What can go wrongRewards sit too far away and nobody changes their behaviour to reach themCycles outpace consumption and cancellations follow the third delivery
How we measure itRepeat purchase rate and orders per customer for members against non membersActive plans, retention at cycle two and three, and revenue per subscriber

When both apply

Running both is reasonable once the standing order exists, provided one does not undercut the other. Let subscribers earn points too, so the plan is the better deal rather than a trade off, and keep the deepest saving inside the plan.

A clean division is a plan for the consumable and points for everything else. The customer who buys the refill on a schedule also earns toward the accessories and new lines they buy occasionally, which is exactly the behaviour you want from a category where one product repeats and the rest does not.

Questions

Few enough that a normal customer reaches one in a realistic period, based on how often your category is actually bought. If your buyers order twice a year, a reward that needs six purchases is invisible to them and the scheme changes nothing.

A long expiry is defensible and it keeps the liability manageable, but tell people clearly and remind them before the date. Silent expiry produces angry messages and loses exactly the engaged customers the scheme was built to keep.

Not on its own. If most customers never return, the scheme rewards the small group who already come back and does nothing about the rest. Fix the reason for the low return rate first, whether that is product range, timing or post purchase contact.

Not running out, more often than price. Say that first in the offer, then the saving, and make skipping a cycle obvious from the start, since a customer who can easily skip is far less likely to cancel outright.

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