Loyalty and subscriptions: how to increase the value of an online shop?
Introduction
An online shop with 1,000 one-time customers is worth less than a shop with 200 recurring subscribers. The difference? Revenue predictability and the long-term value of each customer.
The figures speak for themselves: acquiring a new customer costs 5 to 7 times more than retaining an existing one. A 5% increase in retention rate can boost profits by 25% to 95% depending on the sector. For an e-commerce business, this radically changes the valuation during a transmission.
Potential buyers are not just looking for turnover. They want recurring revenue, loyal customers, and solid metrics. A well-documented loyalty programme becomes a concrete selling point. It proves that the business does not solely depend on constantly acquiring new customers.
This guide explores loyalty models that actually work: points programmes, recurring subscriptions, VIP clubs. It details the essential metrics to track to prove the value created. And it shows how to implement a profitable strategy, tailored to your sector, and documented to value your business during a future transmission.
📌 Summary (TL;DR)
Loyalty models significantly increase the value of an e-commerce business by reducing acquisition costs and creating predictable revenue. Points programmes, recurring subscriptions and VIP clubs transform one-time buyers into loyal customers. Key metrics (retention rate, CLV, CAC) allow you to measure and prove this value, particularly during a transmission.
📚 Table of contents
Why loyalty increases the value of an e-commerce business
Acquiring a new customer costs 5 to 7 times more than retaining an existing one. This economic reality directly impacts the valuation of an online shop.
An e-commerce business with 40% recurring customers is often worth 30 to 50% more than a competitor with equivalent revenue but relying solely on new customers. The reason: high customer lifetime value (LTV) reassures acquirers about revenue predictability.
Valuation multiples increase when customer retention is documented. To accurately assess your shop, use our valuation tool.
Loyalty models that work
Three models dominate the Swiss e-commerce market: points programmes, recurring subscriptions and VIP clubs. Each responds to different objectives and sectors.
The choice depends on natural purchase frequency, average basket size and product type. Here are the concrete options with their measurable performance.
Points and rewards programmes
The points system remains the most accessible. Customers accumulate points with each purchase, redeemable for discounts or products.
Measured impact: average increase of 15 to 20% in basket size. Swiss examples: Coop Supercard, Migros Cumulus.
Implementation costs: CHF 2,000 to 5,000 depending on the platform. Expected ROI: 6 to 12 months.
Recurring subscription models
Monthly or annual subscriptions transform one-off purchases into predictable revenue. Ideal for consumable products: coffee, cosmetics, food.
Major advantage: increased valuation with multiples of 4 to 6x versus 2 to 3x for a traditional e-commerce business. Swiss food and cosmetics boxes illustrate this model.
Target retention rate: 70 to 80% after 3 months for a viable model.
VIP clubs and premium access
Annual membership (CHF 50 to 150) providing access to free delivery, exclusive offers and early sales. Works particularly well for average baskets above CHF 100.
Fashion and sports equipment e-shops use this model successfully. The membership partially finances the benefits whilst creating a sense of belonging.
Metrics to track to prove value
Documenting the performance of your loyalty strategy increases credibility during a transmission. Acquirers look for concrete data over a minimum of 24 to 36 months.
Three key indicators allow you to quantify the impact of customer retention on online shop value.
Retention rate and churn
The retention rate measures the percentage of customers who return over a given period. Monthly or annual calculation depending on your model.
Benchmark: above 35% over 12 months = good, above 50% = excellent. For subscriptions, acceptable churn: below 5% monthly.
Document the evolution over a minimum of 24 months to demonstrate stability.
Customer lifetime value (CLV)
Simple formula: (average basket × purchase frequency × customer lifespan) - acquisition cost. This metric reveals the actual profitability of each customer.
A CLV 3 times higher than CAC = healthy business model. Concrete example: e-commerce business with CLV of CHF 800 versus CAC of CHF 200.
Customer acquisition cost (CAC)
Calculation: total marketing expenses divided by number of new customers acquired. In Switzerland, average CAC for B2C e-commerce: CHF 50 to 150 depending on the sector.
The objective of a loyalty strategy: reduce the CAC/CLV ratio by maximising the value of each acquired customer.
Implementing a profitable loyalty strategy
Implementing a loyalty system does not require a colossal budget. The pragmatic approach: start simple, measure, adjust.
Three steps allow you to build a profitable programme that increases online shop value without exploding operational costs.
Start simple and measure
Begin with a basic points programme or personalised emails before investing in a complex system. Suitable European tools: Loyoly, Smile.io, Yotpo (CHF 300 to 1,000/month).
Minimum test phase: 3 to 6 months before evaluating actual ROI. Measure the impact on average basket and purchase frequency.
Adapt the model to your sector
Food and consumables: favour monthly subscriptions. Fashion and equipment: VIP clubs with exclusive benefits. Services: annual packages.
Analyse your customers' natural purchase frequency before choosing the model. A mismatch between model and purchasing behaviour reduces effectiveness.
Document for transmission
Prepare a quantified dossier: metrics evolution, programme costs, loyal customer profile, recurring revenue forecasts. This data increases credibility during valuation.
Use our valuation tool to estimate the impact. Our network of experts can support you in preparing your M&A dossier.
Loyalty is not just a marketing strategy. It is a direct lever on the value of your e-commerce business. A returning customer costs less to serve, buys more often and generates predictable turnover. These elements reassure acquirers and justify a higher valuation.
Points programmes, subscription models and VIP clubs all have their merits. The essential thing is to choose what corresponds to your sector and your customers. Then measure: retention rate, CLV, CAC/CLV ratio. These metrics transform your efforts into tangible arguments during a transmission.
If you are considering selling your online shop, document your loyalty initiatives and their results. An acquirer does not only pay for a catalogue or a website. They pay for an engaged customer base and recurring revenue. Need to estimate the value of your e-commerce business? Use our free valuation tool or explore the businesses for sale on Leez.
