Subscriptions are booming, with 70% of business leaders saying they will be key for revenue growth in the future. From software to entertainment to transportation, consumers are more interested in paying for the use of something than owning it outright.
You might think a subscription offering wouldn’t fit your business, but who would have thought consumers would want to subscribe to razors or workout clothing? But when you love Dollar Shave Club’s affordable options, delivered right to your door, or you get access to leggings from Fabletics that don’t fall down, ride up or lose their shape, you see the reasons it’s working for these companies.
If you haven’t yet incorporated a subscription model, here are a few areas to consider:
This is the magic behind brands like Costco, who know that they have superior products at lower prices. Customers happily pay an annual fee to have the opportunity to purchase everything from boxes of diapers to tubs of soup, all in massive quantities. And Costco also benefits from the perception that the subscription price has been paid, so the customer feels like they need to shop enough to make the cost worth it.
If you incorporate this model into your strategy, you can use it to tier access to particular products or pricing, using VIP and standard tiers for different benefits.
Personalization and Curation
Brands like Stitch Fix and Blue Apron tailor subscriptions to meet exact specifications by customers, and as the customer continues to use the product, their experience gets better and better. This direct access to customer preferences allows you to switch personalization from an internal strategy to the very-public perk of curation.
This is one of the pillars of subscription models. It’s the reason everyone is lounging on their couches watching Netflix rather than shuffling aimlessly around Blockbuster. Having a product that arrives at your door without you having to even remember to order it makes a subscription service convenient.
Some subscription products offer customers a special price in exchange for the predictability and loyalty that comes with a subscription. In the case of Costco, subscribers are paying the annual fee for access to special pricing.
If you already have a strong brand, it may be the right time to launch a subscription service. You’ll enjoy the predictable revenue and built-in loyalty and you’ll gain valuable customer data based on their preferences. It also has great potential to do more than just sell a product; you have the ability to create a community around your offering.
DirectMail.io’s automated all-in-one marketing solution is the right tool to help you develop a subscription model for sales. Contact us to learn more.