Subscription services appear to be all the rage these days. Brands like them because they cut out a retail middleman and create a more regular revenue stream. Consumers like them because they’re convenient, offer greater choice, and allow customers to tailor their buying experiences to their needs. But not every product or service is suited to a subscription model, and if you can’t help consumers see the benefits of yours, you won’t get very far.
In a recent article for eConsultancy, Rebecca Sentance recounted a panel discussion that took place recently where panelists discussed the distinction between products that we need, such as food and toiletries, and products that we want, like wine or beauty products. The nature of the products themselves will dictate whether a subscription plan is viable, and the success of similar products as a subscription doesn’t guarantee that a product will go down well on a subscription basis.
“Certain products just don’t work well as a subscription service,” wrote Sentance. “Underwear and socks are a tricky proposition for a subscription because people only need them semi-regularly, but they also don’t work as a rental item, which is how other clothing subscriptions like Rent the Runway succeed with a subscription model.”
An Incentive to Buy
Panelists agreed that to succeed, subscription-based items must offer a regular incentive to buy. The subscription model works best for products and services that customers need regularly (or higher-priced items that they need semi-regularly). But the management of the subscription process is also key: customers won’t be wowed by a subscription process that’s cumbersome, limited and hard to manage. For this reason, it’s critical that subscription businesses have a good management platform in place.
A Good Subscription Platform
Subscription DNA’s subscription management software is ideal for small and medium-sized businesses that wish to build a startup subscription business model. It features group enrollment tools and group communications, email marketing automation, cloud billing automation and payments, intuitive membership management, CRM and premium content, and paywall management. Your customers can even log in and manage their own accounts right from your Web site.
To succeed in the business subscription model, it’s important that you build the type of community that keeps subscription customers engaged, interested and loyal. Contact Subscription DNA via to learn how you can market to, communicate with and support younger consumers.