If you're thinking of starting a Shopify subscription ecommerce brand or aiming to make your existing one more successful, keep reading. We'll share tips on how to build a thriving subscription business.
Subscription eCommerce is a business model in which customers pay a regular fee to have access to a range of products or services. Typically, subscription businesses offer a wide variety of products or services that are selected and delivered regularly, ensuring that customers always have the product they need at their fingertips. Subscriptions can be successful in a variety of industries such as food & beverage, cosmetics, health & wellness, pet food, CBD etc.
The subscription model has become increasingly popular thanks to the ease and convenience it offers customers. Because subscription services typically operate on a recurring billing system, there is no need for customers to go through the hassle of making new purchases each time they need something from the subscription service. Additionally, subscription services often offer discounts and special deals for those who sign up for long-term memberships. Overall, the subscription model is an efficient and effective way for businesses to provide value to their customers while satisfying their bottom line.
In a subscription-based business, the subscription can be for a fixed term, such as a year, or it can be open-ended. There are several different types of subscription models, including finite, prepaid, gifting, sequential, and standard. Let’s discuss the different types.
Subscription models create a strong sense of brand loyalty, as customers are more likely to continue using a service they are already paying for regularly. As such, subscription models can be an effective way to build brand affinity.
A subscription model business is a win-win for both the customer and the company. The customer gets a service or product they love at a price they're happy with, and the company receives a recurring revenue stream that they can count on. However, running a subscription business is not without its challenges. Here are some tips to help you run a successful subscription business:
A customer portal is an essential tool for any business. When designing the self-service dashboard, make sure it includes product documentation, shipment tracking, and other resources so customers can find what they need with one click!
Here are some easy things we recommend doing. A great way is by creating a welcome email for new clients or keeping track in real-time through social media posts every few weeks (or more). You should also send emails for birthdays and a company newsletter.
The best way to choose a business model is by understanding your goals. Whether you are looking for revenue, customer acquisition, or the number of units sold, you must make decisions with your goals in mind.
You must track reasons customers churn so you can create a solid customer retention plan. It is much cheaper to keep customers than to go out and get new ones. A loyal customer base is very valuable to a business.
Customers expect personalized subscriptions to become even more tailored over time. 28% of curation subscribers said a customized experience was the most crucial reason they continued subscribing.
If you’re on the fence about starting a subscription-based business, hopefully, this article has helped sway you in that direction. There are many benefits to reap when running a subscription company, but chief among them is predictability. With a loyal customer base who loves your product and service, you can generate more cash flow and spend less to acquire new customers. Making upselling and cross-selling easier is another perk of having a subscription business model. So, what does it take to build a successful loyalty program within the subscription-based model? Creating a program strategy that focuses on customer service at its core is key.
If you want to start building your subscription business, our team at Smartrr is here to help. We have years of experience in the subscription business and can guide you through the process of starting your subscription business and being successful with it.