How to Boost Your Business with Subscriptions
How to Boost Your Business with Subscriptions
Would you like to boost your business with subscriptions? It’s no surprise that this is one strategy you absolutely need in today’s market!
Subscriptions are everywhere. From shaving kits to clothes, to groceries, subscription models are booming. People are embracing subscriptions in their daily lives, thanks to the convenience and flexibility that comes with them. Regardless of what type of products you offer, subscription commerce can help you maximize your revenue and increase customer loyalty.
If you already run a successful traditional eCommerce company, you may consider adding subscription options into the mix. Here is everything you need to know about using the subscription commerce model to gain a competitive advantage and take your eCommerce game up several notches.
What is Subscription Commerce?
With a subscription commerce business model, a business allows its customers to subscribe to the products or services they require on a fixed, ongoing basis. The subscription frequency can vary, from weekly, to monthly, or annually, depending on the customers’ preferences.
There was a time when the subscription commerce model was limited to magazines or newspapers. Today, the model is being adapted and utilized for a wide range of industries. According to a study by Manifesto Growth Architect, about 70% of business leaders in all different industries believe that subscription business models will be key to the future growth of eCommerce businesses.
Tips to Boost Your Business with Subscriptions
Here are some essential elements of a successful subscription business –
Pricing
Instead of offering one price point, create different pricing tiers. Offering tiered pricing allows you to appeal to more customers and maximize your profits.
Inventory Management
Subscription models make it easier to predict your monthly sales, which makes it easier to keep all your products in stock.
Give Full Control to Your Customers
Provide your customers with control over their subscription. Allow them to pause, upgrade, downgrade, or cancel their plan easily when needed. Allowing more control helps to prevent cancellations.
Customer Service
Since you have to win your customers every billing cycle, you need to understand your customers' needs at a deeper level. Make sure to be accessible to them through multiple channels.
Increased Profits with Subscription Commerce Business Models
The subscription model creates a predictable revenue stream for eCommerce businesses by automating the buying process. The goal of a subscription model is to make it convenient for consumers to continue purchasing your products on a regular basis. Since sales are recurring, financial forecasting becomes easier. You can not only improve predictability in terms of sales and revenue but also when it comes to your inventory.
When your customers have a positive experience with your subscription service, it cultivates brand loyalty. It also puts you in a better position to cross-sell and market additional products or services to your customers. Starting a subscription business is highly lucrative when done right.
Choose the Best Subscription Type for Your eCommerce Business
Subscription models are growing in popularity. According to UBS financial services firm, the eCommerce subscription economy is set to grow to $1.5 trillion by the year 2025.
There are two main types of subscription commerce –
Auto-ship
Auto-ship subscriptions provide regular and recurring deliveries to customers. Some products that are typically offered include toiletries, groceries, pet food, and more. These are typically products that customers have a consistent, ongoing need for.
Subscription Kits
With kits, the customers can choose from a collection of products based on their unique preferences and receive them on a set schedule. Customers do not always hand select every item that goes in these kits and sometimes they may receive random products based on their interests. Examples include games, clothing, beauty products, and more.
Both subscription types have their benefits and drawbacks. You can choose one or provide both options, depending on your industry and your business goals.
Outsource Your Subscription Box Fulfilment
A lot can go wrong if you try to do everything in-house. Ensuring that your customers get their products on time may seem easy, but it can get complicated quickly if you do not have a reliable shipping and order fulfillment company.
Outsourcing your subscription box fulfillment services can ensure your orders are shipped regularly and generate substantial revenue for your business.
Some of the benefits of outsourcing your subscription box fulfillment to a third-party vendor are –
- Lower overhead
- Smooth and efficient delivery of orders
- Easy scalability
- Inventory management
The subscription service model offers endless opportunities for eCommerce businesses. With the right products, sound pricing strategies, excellent customer service, and reliable fulfillment services, you can get the most out of the subscription service model.
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