The subscription economy has rapidly taken off over the past decade, growing over 435% in the past nine years.
Here is why YOU should offer a subscription service within your business…
1) 📈 SCALABILITY- there is a high level of flexibility with this model. Start by focusing on one product/ service that you can offer to your customers each month. Play around with different pricing tiers and levels of service and grow your customer base.
2) 👀 PREDICT RECURRING REVENUE- enrolling customers into these subscriptions helps ensure a steady flow of income. Unlike a pay once model where you have to focus your efforts on attracting new leads and converting them into sales, causing revenue to fluctuate from one month to the next, the subscription model makes revenue more predictable and easier to plan ahead. Steady streams of income makes your business more valuable in the eyes of investors.
3) 💵 CAPTURE YOUR CUSTOMERS IN THE ‘BUY’ MOMENT- subscription payments spread large purchases out over time for what feels like less commitment. Consumers gain immediate access to the service or product with a low bar for entry. Your business can make this even more enticing by offering a free trial or discounted rate for new customers. With an attractive pricing plan and special offers, your business puts in less work upfront to attract new clients.
4) ♥️ ENGAGEMENT- due to the nature of a recurring service, you can naturally reach out to customers via email campaigns and monthly newsletters. Consistent engagement with your products and services can help create more effective targeted marketing strategies. The continuous contact involved with subscriptions also naturally builds a trustful bond, making it easier to upsell or cross-sell related services.
5) 💍 CUSTOMER RETENTION- another benefit of working with the same customers is that you develop stronger relationships with them over time. When your service team is always there providing excellent customer support, customers learn to trust your employees and they become accustomed to working with your brand. This plays an important role when customers have to decide whether or not they'll renew their subscription.
Get in touch with us today (carmen@livxmedia.com) to find out how we can help scale your business by creating a strong online presence!
