Subscriptions LTV: 4 Keys to Increasing the Lifetime Value of Your Customers

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How do socks make a difference in the world?

Discover how John's Crazy Socks used Bold apps to successfully translate the experience people got at local markets to an online store and increased sales tenfold.

Company name
  • John’s Crazy Socks
Industry
  • Apparel
Market
  • Sock subscription

The company

When John Cronin finished school, he saw limited career opportunities for people with differing abilities like himself, so he put on his entrepreneur’s hat (or socks) to walk down his own path. To do that, he partnered with someone he could trust — his dad. After playing around with a few concepts, they realized that the perfect business idea was laying right at their feet: John had worn colorful and crazy socks his whole life, it was his thing, making it the perfect fit for their new company.

Despite limited marketing, they sold 1,000 pairs of socks in their first few months of operation. Word of mouth spread, particularly about John’s personal deliveries in their hometown of Huntington in Long Island, New York, attracting sock-happy customers. But that slow patter was about to turn into a stampede, and they had to put socks on all those feet.

The challenge

Almost overnight in March of 2017, they went from 50 orders a day to over 1,000. A video about John and his new business blew up online, and a rush of orders came on the heels of skyrocketing traffic. The video was great for business, but after the excitement died down, so did the orders customers placed.

With more media appearances sure to materialize, John and Mark realized they needed to find a way to capitalize on the traffic spikes by increasing average order value and nurturing shoppers into repeat customers. They explored their options and tried on a few new tactics.

The solution

John and Mark decided launching a subscription service was the best way to make recurring revenue off shoppers attracted by their inspiring story. They installed Bold Subscriptions on their Shopify store and got to work. Because of the app’s simplicity, within two weeks they had a sock of the month club up and running with a few hundred subscribers.

At the same time, the pair recognized the higher commitment of subscribing, particularly for new customers. They knew they had to encourage one-time customers to check out with bigger orders. Bold’s apps helped them there too.

They used Bold Upsell to build offers right into the shopping experience that enticed visitors to add more products to their orders. They also used Bold Brain to display a recommendation widget on their homepage and product pages. The Brain widget used the power of AI to automatically display recommendations based on products that were often purchased together, or already viewed by the shopper, which helped optimize conversion. With over 2,000 patterns to choose from, this helped get more products in front of customers while also increasing AOV.

The results

With a sock of the month club in place, and order building tactics integrated into the shopping experience, John’s Crazy Socks was prepared to capitalize on the next viral event.

So when their inspiring story got more attention from both local and international media outlets throughout 2018, they stitched together some pretty impressive results. Thousands of people signed up for the sock of the month club, and the service continues to drive revenue week after week.

The flexibility of their subscription service gave customers control over how long they subscribed, and the user-friendly back end of Bold Subscriptions helped the team quickly adapt when they got customer feedback.

The personalized recommendations had an average conversion rate of over 45%, helping drive close to a thousand dollars in additional revenue every week from customers who weren’t necessarily ready to subscribe.

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