Introduction

Everybody loves coffee; a cup in the morning or during office breaks is a go-to drink for many people. Coffee is one of the most widely consumed beverages in the world. Did you know coffee originated in Arabia and was called 'Qahhwat al-bun,' also known as Kahwa? Turks called it Kavhe, and the Dutch called it Kaffie, from which English derived the name coffee and made it famous worldwide. According to Statista, In 2021/2022, nearly 176 million 60-kilogram bags of coffee were consumed worldwide, a slight increase from almost 167 million bags in the previous year.  A coffee subscription is the best way to target these coffee lovers and gain their loyalty.

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What is a Coffee Subscription?

A coffee subscription service is a recurring delivery service that provides coffee lovers regular shipments of freshly roasted beans. Coffee lovers opt for the subscription service and select their preferred coffee and delivery frequency.

The subscription model with Shopify is becoming popular with coffee lovers because one can quickly get their favorite coffee delivered right to their doorsteps by subscribing online. This service is available for everyone, from large coffee brands to small local roasters, giving all an equal chance to offer their products.

With the increase in coffee consumption, the subscription market, which is 685 million US$ now, is expected to expand at a high-value CAGR of 10.9% to reach 1.89 billion US$ by the end of 2032. The shift towards home-based coffee consumption increased during the pandemic, which helped boost online coffee subscription services. Espresso is the most widely consumed coffee through subscription models, holding 30.9% of the market share. Subscribers also prefer whole-bean coffee and grind the beans themselves for maximum freshness.

How does the coffee subscription work?

A coffee subscription service is a streamlined way to regularly deliver fresh coffee to customers. Here's an overview of how it typically works: -

Subscribers need immediate response to their queries and complaints. Ensure you can reply on every channel (email, phone, live chat). Inform the subscribers about their shipments, new products, or any changes in the service.  
  • Boost the subscription with value-added features: Offer exclusive perks like a discount on additional purchases, a loyalty program, and early access to new products for special members. Educate subscribers with engaging activities like brewing techniques and tasting notes. 
  • Well-organized Logistics: Packaging should appeal to consumers while protecting the freshness of the coffee. Choose a reliable delivery partner that offers tracking options to customers.
  • Monitor and Adapt: Regularly track subscribers' growth, retention rates,, and customer lifetime value (CLV). Utilize all the data you have received from the performance and customer feedback to improve the subscription service. Based on market trends and customer preferences, adapt and change your marketing plans.
  • Transparent Pricing: Clearly display all charges, such as the cost of subscription and shipping charges, if any, along with taxes or any additional charges. Payment options should be flexible in terms of delivery frequency and payment platforms. 
  • Setting Up Subscription Plan: There are two significant steps in setting up your subscription plan. The first step is designing the subscription plan based on delivery frequency (weekly, bi-weekly, monthly), quantity (12oz, 1lb bags), and type of coffee (single-origin, blend, decaf, etc). The next step is customization. Let the customers select the type of coffee and delivery frequency.
  • Customer On-Boarding and Management: Once you have set up the subscription plan, you can begin the sign-up process for the customers. They must select a plan, enter shipping details, and set up a payment method. Account management provides your customers with the flexibility to customize their orders. They must access their account on the website to manage account details like coffee type, update shipping information, or pause/cancel the service.
  • Processing and Fulfilling Orders: The next step after on-boarding the customers is processing and fulfilling orders. Ensure you have a system to manage regular and new orders and the due date. The coffee should be packed in suitable bags that preserve its freshness. You can add a personalized touch, such as notes or special offers, to enhance the customer experience. The final step here is choosing a reliable delivery partner who delivers the shipment on time.‍
  • Continuous Engagement and Support: Now that you have ensured that the shipment reaches the customers on time, don't let them forget you. Engage with them via email, newsletter, exclusive offers, and updates on new coffee releases. Make sure you are easily accessible for your customers to handle inquiries, resolve issues, and assist with any changes to subscriptions.

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Types of Subscription

Different minds think differently, so how can just one subscription plan cater to everyone? Let's understand several types of subscription plans that you can offer your customers.

  • Frequency-based Subscription: As the name suggests, this type of subscription plan is based on the frequency of deliveries. Weekly and fortnightly subscription plans are for frequent coffee consumers and larger families, while monthly subscription plans are for regular coffee consumers and relatively smaller families.
  • Quantity-based Subscription: This type of subscription plan offers subscriptions in small quantities (12oz-1lb), medium (2-3lbs), and large (more than 3lbs).
  • Customization-based Subscription: This option gives subscribers the power to choose from coffee type, roast level, quantity, and frequency of delivery. Subscribers have complete control over the subscription choices in this option.  ‍
  • Specialty Subscription: As the name implies, this option provides special options like rare, seasonal, exclusive, distinct flavors, and premium products. This is a premium subscription that can cater to those who are crazy about coffee.

Benefits of Coffee Subscription:

Coffee Subscription models with Shopify can be beneficial in more ways than one. They can lead to financial stability, better customer relationships, customer retention, and lower customer churn. Let's explore these in detail. 

Best Practices for Coffee Subscription: 

Implementing a successful coffee subscription service requires careful planning, customer focus, and operational excellence. Here are some best practices for coffee makers to consider:

  • Customizable Subscription Plans: Offer subscribers the option to choose from coffee type, roast level, grind size, and delivery frequency. Subscribers should also be able to modify the plans at any time.
  • Focus on Quality: Aroma is vital for coffee. Make sure the freshness of your coffee is intact. Maintain premium quality for your beans, which attracts coffee enthusiasts, along with stringent quality control measures.
  • User-friendly subscription experience: A step-by-step guide to help subscribers with the sign-up process or a smooth checkout process with multiple payment options ensures more traffic. Subscription management communication should be concise and clear.
  • Extraordinary Customer Support:  Subscribers need immediate response to their queries and complaints. Ensure you can reply on every channel (email, phone, live chat). Inform the subscribers about their shipments, new products, or any changes in the service.  
  • Boost the subscription with value-added features: Offer exclusive perks like a discount on additional purchases, a loyalty program, and early access to new products for special members. Educate subscribers with engaging activities like brewing techniques and tasting notes. 
  • Well-organized Logistics: Packaging should appeal to consumers while protecting the freshness of the coffee. Choose a reliable delivery partner that offers tracking options to customers.
  • Monitor and Adapt: Regularly track subscribers' growth, retention rates,, and customer lifetime value (CLV). Utilize all the data you have received from the performance and customer feedback to improve the subscription service. Based on market trends and customer preferences, adapt and change your marketing plans.‍
  • Transparent Pricing: Clearly display all charges, such as the cost of subscription and shipping charges, if any, along with taxes or any additional charges. Payment options should be flexible in terms of delivery frequency and payment platforms.

Recurpay – A Magic Wand for Coffee Makers

Managing a subscription model is not everyone's cup of coffee. You may face challenges like modifying churn risks, evolving product value, aligning pricing and plans, and managing failed transactions. All the coffee brands need here is Recurpay to manage the subscription model and enhance customer retention. Let's understand how Recurpay can improve your coffee subscription experience:

  • Flexible Subscription Setup: Recurpay is a user-friendly tool with Shopify for creating weekly, fortnightly, and monthly subscription plans, grind type, flavor, quantity, and delivery frequency. The portal can have customizable options to edit, reschedule, or skip deliveries.
  • Excellent Customer Experience: Recurpay provides features like auto debit that enable hassle-free, long-term customer retention. It also offers the option to mix one-time purchases with subscription orders to boost sales and allow the customer complete purchasing liberty.
  • Management and Engagement Tools: The customer portal provides complete autonomy to the customers to manage their subscriptions via actions like edit, skip, and reschedule deliveries when required. This facilitates customer retention. Through tools like email, SMS, and Whatsapp notifications, Recurpay educates customers about new products and pricing changes and thus reduces churn.  
  • Analytics and Insights: Data such as subscription performance, sales trends, retention rates, and customer behavior help you optimize the subscription offering and enhance marketing strategies.
  • User-Friendly Integration and Setup: Smooth integration with Shopify allows user-friendly management and supports various payment gateways for global businesses. If you are trying to transition or migrate your subscription to Recurpay, live chat support can make your experience seamless.

Recurpay simplifies recurring orders and optimizes operations for coffee makers, enhancing customer satisfaction and ensuring steady revenue through tailored subscription management.

Join Recurpay's coffee subscription today for fresh, premium coffee delivered to your doorstep, perfectly tailored to your taste and schedule!