It seems like everywhere you look these days, you can sign up for a subscription – whether it’s movies from Netflix, beauty supplies, or household goods – to regularly show up on your doorstep. The successful rise of the subscription model can be tied to the new digital economy.
In the past, everyone paid in cash or wrote a check. No one would have dreamed of walking into a big box store and handing over a debit or credit card and then asking the store to hang onto it for all future purchases. Yet that’s exactly what people do today.
There’s now a comfort level with not only paying online, but also allowing sites such as Amazon to store payment information so things can be bought later with a single click. Now that people rarely think twice about digital transactions, the barrier to entry into subscription marketing is significantly lower.
Consumers Love Subscriptions
Consumers like things that make their lives easier, and subscriptions can do just that. For instance, they don’t want to shave with an old blade because they forgot to buy new ones. Dollar Shave Club makes sure that doesn’t happen by sending subscribers a monthly supply. Diapers.com makes sure its Autoship customers don’t have to make late-night runs to the store because they forgot to stock up.
Just about everything consumers want or need can be delivered to their doors. Food, household supplies, clothes, and toys – there are few things that can’t be scheduled for delivery. And busy consumers love the convenience of not having to remember to stop at the store for toilet paper, soap, diapers, and razors.
They also love the fun of being delighted by the fashion or beauty supplies that show up on their doorsteps. Subscriptions not only take away the need to remember, but also provide consistent access to the brands consumers love.
If Consumers Love It, So Should You
The hard work of convincing consumers to sign up for subscriptions is done. They already love them. So now you can jump on the bandwagon and reap the benefits. Not sure what the benefits are? Here are some things to remember:
1. Recurring revenue is awesome
The greatest strength of subscription marketing can be summed up in one word: Revenue. Instead of a one-and-done transaction, subscriptions give you a recurring revenue stream. You will know how much will be coming in most months, which makes it easier to meet budgets and grow.
We all know it takes more money to acquire customers than it does to keep them. But if your customers are consistently paying you the same amount every month for products or services, you have the opportunity to build long-term relationships.
2. Brand loyalty solidifies your business
Building relationships and trust with your customers is one of the best ways to keep them. In the past, you could only do this at the point of sale and occasionally through marketing materials. With subscriptions, you have the chance to surprise and delight every single month.
Birchbox, for example, not only delivers sample products, but also provides information about the products that its customers trust and rely on. It feels like getting advice from a trusted friend. This relationship breeds happiness and brand loyalty, which keeps you in business.
3. Consider the data
If you still need convincing, consider the data angle. Data helps companies create better customer experiences, but it’s not always easy to get. However, subscription companies know their customers very well. That’s because their customers are happy to fill out extensive profiles to ensure they get personalized treatment.
This data can be valuable to not only your company’s growth, but also potential partners, acquirers, or advertisers. With this detailed information in hand, you can let advertisers know more about your customer base, which will help your business and theirs.
Subscription marketing isn’t just a passing trend; there are too many benefits for everyone involved. Consumers love it, and companies are poised to reap the benefits of it. The question is: Will you be one of them?
To learn more about subscription marketing and hear Peter speak in person, be sure to register for LeadsCon New York, where Peter will share his insights during the “Subscription Marketing: More Than Just a Fad?“ session.