3 Ways to Create Successful Recurring Revenue in 2024

There’s no denying that having a loyal customer base can provide tremendous lifetime value for a business.

The business of a repeat customer -- whether it is retail, grocery, or software -- can create myriad upsell and cross-sell opportunities for a company. Better yet, the customer can become a loyal advocate for the brand. But how can you turn what could be a one-time purchase into a loyal brand advocate?

By creating a successful recurring revenue model.

Successful Recurring Revenue in Action

Take Peloton, for example.

Peloton has become a household name in the past year, with hundreds of new customers scrambling to get their names on the stationary bike that took the pandemic by storm.

But as you very well know, Peloton doesn’t just sell stationary bikes. The true value is in the monthly subscription that many pay for to watch the on-demand videos, monitor stats, and connect with other Peloton users.

This recurring revenue -- the monthly subscription -- has turned many one-time stationary bike purchases into loyal brand advocates. This type of recurring revenue not only affects the bottom line, but can also translate into increased business valuations, putting a shiny bow on a business for potential investors. 

3 Ways to Create Successful Recurring Revenue

At Blustream, we value the long-term connection forged between customers and their products through product ownership experiences.

Through product ownership, businesses can use purchased products to strengthen their customer relationships. With every product having a life after the sale, defined by the unboxing, onboarding, usage, and maintenance stages of the consumer-product continuum, businesses can truly connect with customers for life

The secret sauce to creating these long-term relationships lies in the three ‘Rs’ -- retention, revenue and referrals.

1. Retention
   
   Product ownership experiences can drastically reduce churn and increase retention, as companies are constantly connecting with customers via product touchpoints throughout the lifecycle of the product.
   
   
2. Revenue
   
   With a clear understanding of zero-party data, businesses can easily cross-sell and upsell the customers that are using their products more frequently. Like Peloton, this can create an ongoing steady, predictable revenue stream for the business.
   
   
3. Referrals
   
   Happy customers are going to tell their friends and family about purchases and businesses they are excited about, becoming brand advocates without any investment in marketing or sales dollars.

As mentioned, product touchpoints can fuel these long-term relationships, where brands create specific post-sale engagements to connect with their customers at exactly the right time. Source data, like customer location, product usage, purchase date and more, can drive these post-sale product touchpoints that will help businesses optimize customer experiences and drive recurring revenue. 

Build A Successful Recurring Revenue Model with Blustream

At Blustream, we believe every company should deliver exceptional product experiences to their consumers. Our Product AI Assistant™ is an intelligent, adaptive messaging platform capable of sending personalized, automated messages to product owners at exactly the right time. 

Consumer product and services companies across industries turn to Blustream to build innovative product experiences that drive revenue, retention and LTV.

To start building a successful recurring revenue model with Blustream, book a demo today.