Subscription Services Heat Up in Retail

If you ask any consumer today who has convenience as their top priority, the subscription services industry is the best thing that’s happened to meet their needs and desires when it comes to purchasing goods. Today everything from clothing to music, food and even cars can be purchased through no-hassle subscription plans.

Why Subscription Services Are So Hot

For consumers, it’s all about saving money and time and as an added benefit, discovering personalized products they might never have discovered.  For retailers, benefits include the ability to gather key data about their products and what to offer to the market, as well as the ability to increase brand awareness and engagement and open new potential avenues for growth.

Retail Market Heats Up

In the retail industry, which has been a leading source for subscription services, more companies are turning to the option. Well-known clothing brand American Eagle, which closed a number of brick-and-mortar stores back in 2017, has now announced a subscription service targeted at Gen-Z shoppers. This new emerging power customer is more concerned with being responsible for their footprint and moving away from the quickly disposable fashions that have become so popular. Called, “Style Drop,” the service allows online shoppers to create a virtual online wardrobe that’s shared with other online users. They keep what’s sent to them or send it back. The company is still testing the service and will add and adjust features as they learn more about what shoppers want.

Shoe giant Foot Locker is also grabbing a foothold in the market and recently invested in Rockets of Awesome, a clothing subscription service for kids that has grabbed the attention of celebrities and other backers. Targeting the pain points of busy mothers and kids who quickly outgrow clothing and shoes, the brand is changing the game for how to shop for children.

Subscription Billing Software

Subscription DNA’s subscription billing software makes it possible to accept payments from credit cards, checks, purchase orders, and even processors like PayPal. They also help brands move forward in their customer engagement and branding strategies by offering membership management features like drip marketing, CRM and registration tools as well as subscriber portals, paywall functionality, and much more.

Get in touch to learn more!

Research: More Consumers Are Turning to Subscription Services than Ever Before

Subscription services are gaining popularity today as the market seeks out new, convenient and fun ways to buy products and services. Also to quench their thirst to learn about new things that can enhance their lifestyles.

One recent report from Digitas took a closer look at the rate at which people are turning to subscription services and why they’ve become such an in-demand service for the market.

The new research, “The Subscriber’s Dilemma: From ‘More Please’ to ‘No Thanks,”  conducted by the Harris Poll for Digitas,  surveyed over 2,000 U.S. adults and found that among them, over 1,400  currently have active subscriptions services.

While these numbers are promising, there is another layer for brands to consider when it comes to providing value while beating out the competition.

Overcoming Challenges

Delivering just the right amount of communications and outreach, accurately and consistently billing for these services are a few of the hurdles brands face without the right tools in place.

As more companies jump on the subscription services bandwagon, it’s important that they create services and offer products that are must-haves if they want to draw in the number of subscribers needed to be successful.

The goal is to offer, “convenience, access, and perks that they feel they can’t live without,” according to the company.

The report also looked more closely at the types of subscription services consumers we’re gravitating toward and found that clothing and entertainment ranked high on the list for “must have services” with transportation and personal care subscription services failing to impress at this time.

As far as reasons consumers are choosing to subscribe, they noted validation from friends and peers about their subscription items was more important than gaining access to exclusive content when they choose a service.

Other telling information released as part of the study and of extreme importance for companies as they get started with their subscription services, is the fact that respondents said they prefer to receive communications from the subscription companies via email with many saying they’d prefer not to be contacted by a chatbot about the service.

Understanding the market and developing solutions and services that target get the right audience is key when building a subscription-based service.

SubscriptionDNA makes it possible to save time, money, and do more to please customers and potential business. Our enterprise cloud billing and membership management software makes it easy to control every aspect of your subscription business. Streamline business and save time.

Contact us today to get started!

Vehicle Subscription Services on the Rise: Here’s Why

With average car prices rising and many people struggling to balance the costs of housing, groceries, childcare, student loans, and credit card debt, vehicle subscription services are becoming increasingly popular. Customers appreciate the savings and flexibility that subscription plans provide.

How Vehicle Subscription Services Work

Several companies offer vehicle subscription services. The way each operates varies to some degree, but in general, a customer can choose a brand new or previously owned, but fairly new, vehicle. In some cases, a subscription company purchases vehicles, and in other cases a company partners with dealerships.

After a person’s driving record has been checked and the customer has provided payment information, he or she can pick up a car. A contract and credit check are often not required. Many companies allow customers to easily return a car or exchange it for another.

The monthly fee typically covers the car itself as well as a warranty, maintenance, insurance, and roadside assistance. A driver may be required to pay a deductible if he or she causes an accident.

Why Customers Choose Vehicle Subscriptions

A typical car loan can take five or six years to pay off, and a lease generally involves a contract lasting about three years. For people who need transportation but don’t want to commit to a car they might not like or a monthly payment they might struggle to afford, a subscription service can be an attractive alternative. It can also help consumers avoid large down payments often required with a loan or lease.

A subscription service can help customers avoid getting trapped in a cycle of debt. Many people trade in a vehicle before paying off the loan and then take out a loan for a newer vehicle that includes the money still owed for the old car. That practice can lead to seemingly insurmountable debt.

A vehicle subscription service may not be cheaper than a conventional loan or lease in the long run, but customers often choose a subscription because of its flexibility and the ability to avoid surprise repair bills. Many people like the option of getting a vehicle without making a long-term commitment and being able to change their minds without a hassle. A subscription service may also allow consumers to drive luxury vehicles they would otherwise be unable to afford.

Get Help for Your Vehicle Subscription Service

Vehicle subscription services are becoming popular, particularly with younger drivers, who value flexibility and want to avoid incurring long-term debt. As more and more consumers learn how these services work and understand their advantages compared to traditional loan and lease models, vehicle subscriptions may become the norm.

Subscription DNA makes it easy for businesses in a variety of industries to process monthly recurring payments. If you run or are thinking about starting a vehicle subscription service, we can help you make the billing process as smooth as possible for you and your customers. Contact Subscription DNA today to learn more.

Subscription Services Here to Stay

Subscription services are no longer some new, trendy topic for new age businesses catering to the millennial generation and younger. Today you can find subscriptions for everything from food and clothing to movies and even cars.

The explosive success this industry has had is related to the fact that it helps people save time, money and make decisions that benefit them.

With the market for cloud billing (which includes subscription billing services) predicted to reach $16.59B by 2021, now’s the time for businesses to get in the game.

Here’s why subscription services are here to stay and why your business should seriously consider offering the option.

Personalized

Personalization comes in very close second when talking about the ways for companies to succeed today. In line with innovation, this tactic is one of the best ways to gain customer loyalty, show customers you care about their needs and increase the likelihood of a sale.

Subscription services cater exclusively to this need. Most people who sign-up of are considering the service are already in need of it. Consider a clothing subscription service that delivers outfits to match criteria preset by each customer. Items shipped to them are sent in the right size, color and perfect for a specific occasion.

Personalization for your target market is just one of the many ways a subscription service can instantly boost business.

Efficient

The thing that many subscribers are coming to realize about subscription services is that they end up saving money in the long run. Cost savings easily add up and are a major buying factor for most consumers. Subscribing to a service for delivery of toiletries on a monthly or as-need basis, for example, can come with price discounts and more importantly means cutting out the cost and time spent driving around to shop at a brick and mortar grocer. If there’s one thing everyone is short on today – it’s time. This convenience alone is a great selling point for those looking promote subscription services to the market.

Subscription DNA’s enterprise subscription billing software platform automates recurring billing, can set one-time or future billing, and can even support complex payment scenarios. We also offer paywall authentication options to protect or allow access to premium content, media, software, and more.  Get in touch today to learn more!

Using a Paywall to Monetize Content for Today’s Digital Subscribers

When newspapers and magazines saw the future – and that it was digital – they realized they would need a new way to earn money to survive. Customers were quickly becoming used to free content online, and fewer of them were willing to pay for physical copies. A few bold players tried to get out in front of the issue. They tried to go large, and assured themselves readers would pay large sums up front for unlimited access to their digital publications.

In most cases, they were wrong.

We Pay for What We Want

While premier publications like the New York Times has (finally) been successful in digital subscriptions, it’s important to note what people are paying for. The New York Times added 139,000 paid subscribers in the first quarter of 2018 – a 25.8 percent jump from the same time last year. Fully 40,000 of these people – or 28 percent — subscribed to the New York Times crossword feature. Yes, just the crossword. (And despite the growth in digital subscribers, it’s also important to note that the NYT’s digital ad revenue declined six percent in the same period.)

There’s Only One New York Times

Most companies aren’t the New York Times (or the Washington Post, or the London Times), so what hope do they have of making money off digital subscriptions? In reality, there’s a viable business model there, as long as it’s done properly and subscriptions are offered in the way readers want them.

MAGAZINES

People Will Pay for What They Value

If you’re hoping that subscribers will pony up for a large fee to access everything you publish digitally, you’re in trouble. Customers will, however, pay small, piecemeal amounts for what they value, whether it’s a crossword puzzle, a specific article, one-day access for a project or a column by a writer they love. It used to be difficult to build a paywall in a way that allowed subscribers to pay for only what they want. It’s not anymore.

Protect and Monetize Your Content

Subscription DNA paywall software and premium content management features support a variety of paywall models that you can use to customize your customer’s experience, and give them access to exactly what they’re willing to pay for. Whether you’re looking to monetize a blog, provide privileged content access to members, or anything else, Subscription DNA is the way to go.

Our software-as-a-service platform supports free or paid package selection, multiple service ordering, promotional codes, gift subscriptions, special campaigns and much more.

Contact us today to find out how we can help you protect your website, your business and your subscribers.