How to Convert a One-Time Customer into Recurring Revenue

How to Convert a One-Time Customer into Recurring Revenue

How to Convert a One-Time Customer into Recurring Revenue

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Joshua D'Costa

Growth & Marketing

Apr 21, 2025

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5

min

laptop, headphones, phone
laptop, headphones, phone
laptop, headphones, phone
laptop, headphones, phone
laptop, headphones, phone

When was the last time a single purchase turned into a habit you couldn’t live without? Chances are, it happened with a service that kept you coming back month after month. 

That’s the power of subscription models: they make customers feel valued and eager to stay on board.

Switching to a recurring‑revenue approach isn’t just about locking in predictable cash flow and boosting customer lifetime value it’s about forging ongoing relationships that one‑off transactions can’t match. 

Successful SaaS brands leverage smart monetization strategies to move beyond one‑time sales, and with a Merchant of Record partner guiding the way, you can make that shift smoothly.

Let’s explore what it takes to transform your offering from a single purchase into an enduring subscription experience one that turns first-time customer into loyal, long‑term users.

Why Customers Buy Only Once

Many customers make a one‑off purchase and never return, but understanding the reasons behind this behavior is the first step toward turning single sales into subscriptions. Factors such as unawareness of recurring options, worries about ongoing costs, and a lack of immediate need all play a role. Yet, personalization can counteract these barriers—research shows that 65% of subscribers would rethink canceling if they could tailor their plan to their needs 

Unaware of Subscription Options

A large portion of buyers simply don’t know a subscription exists, consumers forgot they were even enrolled in a subscription once a free trial ended. 

They feel overwhelmed by the number of services they’ve signed up for, making them less likely to notice or explore ongoing plans unless clearly presented 

Perceived Cost Concerns

Many customers assume subscriptions are pricier than one-time purchases. In fact, about half of streaming subscribers say they feel they pay too much for their services, highlighting a common cost‑perception barrier 

This misconception can deter them from even considering a recurring plan, despite the fact that long‑term savings often outweigh the initial outlay.

No Immediate Repeat Need

When a product solves a one‑time problem, there may be no trigger to re‑engage. Data shows that after making their first purchase, only 27% of customers return for a second buy underscoring how situational needs can limit repeat business 

However, after that second purchase, the likelihood of a third rises to 49%, indicating the value of re‑engagement strategies at key moments 

The Impact of Personalization

Offering customers control over their subscriptions makes a dramatic difference, customers would reconsider canceling if they could pause, customize pricing, or tweak features to match their usage 

This would persuade them to stay, emphasizing the power of flexible, customer‑centric subscription models 

Six Proven Strategies to Convert One‑Time Buyers

  1. Offer Post‑Purchase Upsells

Right after someone completes a purchase is a prime moment to suggest they lock in even better value. 

For example, once they’ve checked out with a one‑time product, you might display a popup or in‑app banner saying,“Upgrade to our annual plan now and enjoy 20% off every renewal!”

That limited‑time framing creates a sense of urgency, while the promise of ongoing savings sweetens the deal.

  1. Create Irresistible Subscription Incentives

To make the subscription option truly stand out, layer on perks that go beyond a simple discount:

Deep Discounts: “Subscribe today and save 30% every month.”

Bonus Content: Give subscribers gated access to premium tutorials, early‑release features, or priority support.

  1. Build a Loyalty Program

Consider a points system where each renewal or add‑on purchase earns credits toward future discounts or swag. Or create VIP tiers that unlock features like beta access, dedicated customer success check‑ins, or special event invites. 

Brands such as Sephora have proven how powerful this can be, over 80% of their sales come from loyalty members.

  1. Personalize Follow‑Up Communication

Rather than sending generic, spam‑feeling emails, set up automated, purchase‑specific messages like “Enjoying your new toolkit? Subscribe now for automatic monthly access!” right after checkout, and later, “We’ve missed you renew today and get 15% off” to keep customers engaged. 

This kind of tailored follow‑up typically boosts open rates and using segmented campaigns instead of one‑size‑fits‑all blasts can multiply those gains even more.

  1. Highlight Flexibility and Low Risk

Emphasize your commitment to customer freedom by clearly communicating that subscribers can end their plan whenever they choose and will receive prompt refunds if needed. 

Putting straightforward, risk‑free policies front and center such as no‑hassle cancellations and guaranteed money‑back periods, you remove barriers to sign‑ups and foster trust, encouraging customers to stay on board.

  1. Educate on Long‑Term Value

Finally, help customers see beyond today’s purchase. Publish quick-read blog posts, short video explainers, or even live webinars showing how a subscription saves time and money over the long haul. 

For instance:“Here’s how our monthly plan can cut your support costs by 40% in Year 1.”

By illustrating concrete ROI whether through case studies, real‑world examples, or simple math, you position your subscription as not just another expense, but a smart investment.

Leverage Technology to Automate Conversions

Here’s how you can lean on technology to turn more one‑time purchases into repeat business without adding manual steps to your team’s workload.

Salesforce Behavioral Triggers works similarly in Marketing Cloud, firing targeted communications to customers who abandon carts or show repeat interest in a product 

By defining these triggers once, you ensure every eligible buyer receives an upsell prompt without you having to lift a finger

Dodo Payments as Merchant of Record takes this a step further by embedding your upsell logic directly into the billing flow. When customers check out, Dodo Payments can automatically offer subscription plans, handle taxes and currency conversions, and manage renewals on your behalf so your conversion engine never skips a beat

Google Analytics, showing you not just drop‑off rates but also user paths where they go after exiting the funnel. That insight helps you decide whether to tweak button copy, streamline a page, or add a mid‑flow reminder about your subscription benefits

Putting it all together means you’ll spend less time chasing manual campaigns and more time building the product and features that keep customers coming back.

Avoid These Three Common Mistakes

Keep subscription options straightforward: Limit yourself to two or three clear plans so buyers aren’t overwhelmed by choices.

Listen and adapt: Regularly ask customers for feedback (quick surveys or prompts) and adjust pricing or features based on what they tell you.

Watch your numbers: Track Monthly Recurring Revenue, churn rate, and Customer Lifetime Value so you catch small problems before they grow.

Conclusion

Building a subscription engine transforms unpredictable sales into reliable revenue and deepens your customer relationships. Offering compelling incentives, and automating key workflows, you can convert one‑time purchasers into loyal subscribers and unlock sustainable growth for your business.

Ready to make the switch?
Learn how Dodo Payments can power your recurring revenue strategy.

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