Building a Thriving Subscription-Based Business
There are a few big reasons why you’d want a subscription-based business instead of a conventional business focusing on one-off sales. Subscriptions provide a more consistent source of profits, encourages stronger customer loyalty, and greatly increases the chance of repeat sales in the form of subscription renewals.
However, actually getting a subscription-based business to thrive can be quite the challenge. Subscription entails bigger initial costs for customers, which means it could take a while before the business picks up and develops a loyal client base. Add the fact that the competition for subscription-based businesses is getting tougher by the day, so you’ll have to work extra hard to find enough subscribers to get you started. If you want your new business to grow, you need to keep the following tips in mind
1.Offer What Your Customers Want
Customers are rarely looking for generic services; they want to get something that would best suit their needs. This means you can’t just offer a one-fits-all subscription plan if you want to have as many subscribers as possible since some customers will find your subscription either lacking or excessive.
Flexibility is key to appealing to a wider target market. By offering subscription plans that can be adjusted according to each customer’s needs, you ensure that they are getting exactly what they need. This makes your services easier to recommend to more people.
2.Streamline the Payment Process
Different customers prefer different means of payment, and supporting those methods of payment can mean the difference between winning a new subscriber and a missed opportunity to grow your clientele. The best way to approach this is by using an advanced billing solution that is compatible with as many billing options as possible.
Allowing customers to pay the way they want is just part of streamlining the payment process. By relying on high-tech recurring payment solutions, you can also make the payment process a lot easier for your subscribers, in addition to reducing the amount of stress associated with repeated failed transactions.
3.Increase the Value of Your Service
Successfully having customers sign up for a subscription you offer doesn’t mean you can rest easy. Due to the competitive nature of subscription-based businesses, customers can afford to cancel a subscription and switch to a better deal offered by a rival company anytime. You need to make sure your customers always get good value out of what they are paying for.
Aside from providing flexible subscription plans, you can increase the value of whatever you offering by adding smaller bonuses such as discounts, rebates, or even special product promotions. However, you have to be careful not to overdo it, since it might end up looking like your company is overcompensating for the actual subscription’s lack of value.
4.Stay Aware of Your Market
Depending on the type of product or service you’re offering, changes in demand and client needs may occur in as little as a few months. If you don’t do anything, you’ll end up offering nothing but outdated subscription options to your customers. This could be more than enough reason for customers to subscribe to other companies.
You need to make sure you’re always updated on what your customers want. The best way to do this is to conduct surveys every now and then to gather important information on what customers want to get out of your subscription options. You may also have to use analytic tools to gather other data that your customers can’t provide on their own.
5.Don’t Skimp on Customer Service
Never underestimate the power of good customer service. One of the biggest reasons why customers prefer certain companies over others is that they provide excellent customer service, even if their products or services don’t stand out that much. On the other hand, many companies offering great products and services lose customers because of how badly they handle user issues and feedback.
You don’t always need a team of experienced customer service representatives to take calls for you (although that certainly helps). Small businesses can still provide good customer support through little things such as intuitive websites, quick response time to inquiries, and providing swift and proper compensation to customer issues.
There’s no easy way to grow a subscription-based business, but taking the right approach to growing your business certainly helps increase your chances of success.