According to Fusebill, “70% of business leaders say subscription business models will be key to their prospects in the years ahead.” People all over the world have taken to the flexibility and convenience offered by subscription-based business models.
Considering stats like the above, it’s in the best interest of all businesses to explore how they can implement some form of subscription services in their product/service line. But is the transition worth the hype and will it produce the profit promised in so many studies?
Let’s talk about the current increase in subscription services and how to determine if the subscription service model is right for your business. We’ll then provide a few actionable tips for how to market a subscription service successfully.
Why the Increase in Subscription Services?
We’re all familiar with popular streaming subscription services like Netflix, Hulu, and Disney+. Media streaming services allow us to watch our favorite shows and movies on-demand for a small monthly fee. In seeing the extreme success of this subscription service, business owners started exploring how this sales model could be applied to other industries.
Companies haven’t restricted themselves to solely selling subscription boxes of products, but instead found a way to include all manner of services, digital solutions, and even software packages, including:
- Marketing tools
- Sales operations
- Product management and delivery
- Customer support
- Business software
Not only does subscription commerce cater to convenience and flexibility for customers, but it also allows businesses to rely on a steady and consistent revenue stream because they’re able to retain customers better.
Should You Adopt a Subscription Service Model?
You’ve read up on the subscription service model and can see yourself implementing it into your own business. But how do you know for sure if you should adopt a subscription service model? Answering the following questions will help you narrow down whether this sales model is right for your business:
- Do I have a product that benefits customers more if they use it regularly?
- Do I have the supply to meet the demand should the subscription service take off?
- Can I provide high-quality products consistently?
- Is a subscription service model profitable for my business?
- Are the time and effort associated with this sort of model plausible for me as a business owner? Will it negatively impact my physical and mental health?
- Will transitioning to a subscription service model completely confuse my customers?
- Am I capable of marketing the subscription service model correctly?
- Am I willing to make the necessary adjustments to my manufacturing and distribution systems?
- Will I be able to retain customers and keep them subscribed for a long time?
Tips for Marketing a Subscription Service
After implementing a subscription service model, you need to market it effectively to ensure you’re attracting the right audience and retaining your customers.
Market the experience the subscription service provides versus the products within the subscription service. When someone gets your products regularly, how is their life going to be positively impacted by the regular use of your products? Offer a free trial or product to show them how they can thrive in life by subscribing.
Start a blog and write about the products/services in your subscription. Provide knowledge around what the products are, how to use them, and how they can make life easier for users. Use this content to build your online presence, especially on social media. Show behind the scenes of your subscription products/services through lives and videos. Interact with customers in the comments and take care of customer service issues in your DMs.
If you’re not adept in marketing, don’t be afraid to hire a marketing manager. Marketing managers can get the word out about your brand and can promote your subscription service in a way that results in organizational growth. Ensure they’re knowledgeable in all of the relevant marketing techniques like analytics, content marketing, social media, and email marketing. Specialization in working with businesses that offer subscription services is a plus.