Setting Up Subscription-Specific Discounts for Beauty Brands

Beauty and skincare brands with subscription offerings face a common challenge: how to balance attractive discounts for new subscribers while maintaining sustainable margins on recurring orders. The ideal strategy often involves offering a more generous discount on the first order to acquire customers, then transitioning to a more moderate (but still appealing) discount for subsequent orders.

Standard Shopify discounts don't support this level of sophistication, but with the Sway Functions Generator, you can create conditional discount rules that differentiate between first-time and recurring subscription orders.

The Business Case for Subscription-Specific Discounts

Step-by-Step Implementation

1. Access the Discount Functions Section

1. From your Shopify admin, open the Sway Functions Generator app
2. Click on "Functions" in the main navigation
3. Select the "Discounts" tab

2. Create a New Conditional Discount Function

1. Click "Create function"
2. From the modal, select "Conditional Discount"
3. You'll be taken to the function editor

3. Configure Basic Settings

1. Enter a descriptive campaign name (e.g., "Beauty Subscription Tiered Discount")
2. Select the discount class (typically "Automatic Discount")
3. Set the qualifier behavior to "Discount if all qualify"

4. Set Up Customer Qualifiers for First-Time Subscribers

For the first-time subscriber discount function:

1. Under "Customer Qualifier," select "First purchase"
2. Set the condition to "is first purchase"

5. Configure Subscription Item Selection

1. Under "Cart Qualifier," select "Line item properties"
2. Add a property that identifies subscription items in your cart (typically "subscription_id" or similar)
3. Set the condition to "is not empty"

This ensures the discount only applies to subscription items.

6. Configure Discount to Apply

1. Select "Percentage Discount" as the discount type
2. Enter your first-time subscriber discount (e.g., 30%)
3. Add an optional message such as "30% off your first subscription order!"

7. Save Your First-Time Subscriber Discount

Save this function which will apply to first-time subscription orders.

8. Create a Second Function for Recurring Orders

Now, create a second conditional discount function:

1. Follow steps 1-3 again
2. For Customer Qualifier, select "Order count"
3. Set the condition to "greater than 0"
4. Configure subscription item selection as in step 5
5. Set a lower percentage discount (e.g., 15%)
6. Add a message like "15% off your subscription orders"
7. Save this function

9. Test Both Scenarios

1. Test the first-time subscriber scenario with a new customer account
2. Test the recurring subscriber scenario with an account that has previous orders
3. Verify that the appropriate discount is applied in each case

Advanced Configuration Options

Loyalty Tier Integration

You can enhance your subscription discount strategy by incorporating loyalty tiers:

1. Create customer tags for loyalty tiers (e.g., "bronze_subscriber," "silver_subscriber," "gold_subscriber")
2. Create separate conditional discount functions for each tier
3. Set progressive discount rates (e.g., Bronze: 15%, Silver: 20%, Gold: 25%)

Product-Specific Subscription Discounts

For brands with multiple product lines at different price points:

1. In the Cart Qualifier section, add product collection filters
2. Create separate discount functions for premium vs. standard line subscriptions
3. Apply different discount rates based on product margin

Limited-Time Enhanced Discounts

For promotional periods:

1. Create a time-limited conditional discount
2. Set higher discount percentages for both first-time and recurring orders
3. Use clear start and end dates in the discount settings

Implementation Example: Skincare Subscription Program

Here's a real-world example from a premium skincare brand:

1. First Subscription Order:

   • 30% discount on first subscription order
   • Free travel-size product with first order
   • Message: "Welcome to your skincare journey!"

2. Recurring Orders (Months 2-3):

   • 15% discount on subscription orders
   • Message: "Enjoy your member savings!"

3. Loyal Subscriber (4+ months):

   • 20% discount on subscription orders
   • Free seasonal gift every 3rd order
   • Message: "Thanks for being a loyal subscriber!"

Merchandising Your Subscription Discounts

To maximize the impact of your subscription discount strategy:

1. Highlight the Initial Savings - Feature the first-order discount prominently on product pages
2. Create a Comparison Table - Show the price difference between one-time purchase, first subscription, and recurring subscription
3. Show Cumulative Savings - Calculate and display how much customers save over 3, 6, and 12 months
4. Exit-Intent Offers - Use the higher first-time discount in exit popups to recover abandoning visitors

Real Results: Beauty Brand Case Study

A premium skincare brand implemented this dual-discount strategy with these results:

• 42% increase in subscription sign-ups
• 38% reduction in first-month cancellations
• 24% improvement in 6-month subscriber retention
• 18% increase in overall subscription revenue

Measuring Success

Track these key metrics to evaluate your subscription discount strategy:

• Subscription Conversion Rate - Percentage of customers who choose subscription vs. one-time purchase
• First-to-Second Order Retention - Percentage of customers who keep their subscription after the first order
• Average Subscription Lifetime - How many months the average customer stays subscribed
• Customer Lifetime Value - Total revenue generated by subscribers vs. one-time purchasers

Common Issues and Solutions

| Issue | Solution | |-------|----------| | High cancellation after first order | Improve product education and expectations, consider a smaller discount gap | | Discount not applying correctly | Verify subscription item property names are correctly configured | | Customers confused about discount changes | Add clear communication about the discount structure in order confirmation emails | | Low initial conversion despite high discount | Evaluate other barriers to subscription (shipping, flexibility, etc.) |

Next Steps

Ready to implement subscription-specific discounts for your beauty brand? Start by:

1. Analyzing your product margins to determine sustainable discount rates
2. Setting up customer segmentation for first-time vs. recurring orders
3. Creating your conditional discount functions
4. Updating your marketing materials to highlight the subscription savings

For personalized assistance with your subscription discount strategy, book a consultation with our team.