Subscription sales are the future of e-commerce. It provides shoppers with a convenient, personalized and less expensive way to get the items they need on a regular basis. Launching the subscription will help maximize revenue and increase customer satisfaction and loyalty. Find out what the subscription model is, its benefits and in which industry it will work best.
Subscription sales Subscription sales is a business model that enables the cyclical delivery of selected goods at intervals indicated by the customer, without the need for further orders until the subscription ends. It is certainly one of the most interesting sales models, as consumers gain convenience and retailers gain regular profit..
Subscriptions are primarily associated with access to digital products - music, films or series and SaaS solutions. The trend for selling via subscriptions has also reached e-commerce and is attracting more and more attention from companies in more industries every year. Subscription-based online shopping is becoming more common and this does not seem to change. In e-commerce, it is no longer enough just to acquire a customer. You must build a long-term relationship with customers and make them want to return to your shop. This is exactly what is possible with subscription sales.
There are three main subscription models that we can use in online shops:
Access subscriptions, also known as service-based subscription models, involve customers paying, for example, a monthly fee to access certain products or services.
One of the most famous examples of an access subscription is Netflix, where customers pay monthly for access to films and series. It is also Spotify, which offers streaming music, or Adobe Creative Cloud, which is software for creating graphics and design.
Recurring subscriptions refer to products with a repeating purchase. The customer commits to regular payments for access to a specific product or service for a set time period. This could be, for example, a subscription to cat food. When purchasing it, the consumer decides to make a subscription purchase on a shipping cycle of e.g. 14 days. This means that the shop will create a new order containing the chosen food every 14 days and regularly charge the customer for the product.
With recurring subscriptions, companies can increase their revenue and liquidity as they expect regular revenue from their customers. For consumers, this means regular access to a product or service for an extended period od time.
Selected subscriptions are great for people who love surprises, for example. In this type of subscription, the customer regularly receives various products that the supplier selects for them. Examples of this subscription model could be, for example, product samples or mystery boxes.
In the beauty industry, for example, the customer can choose the type of cosmetics he or she wants to receive. The shop prepares the products of its choice and sends them to the customer periodically.
There are a number of advantages to subscription-based purchasing for both sellers and customers. By launching sales in this model, you will gain, among other things:
If you have products that are great for recurring sales, it is worth thinking about incorporating them into the subscription model. Industries, where this model is particularly effective are:
What will make your business unique from the competition? Do you have a strategic driver that will attract customers directly to your site? These are key questions you need to answer before you start your subscription sales.
Remember that subscription commerce is about choosing the right products, surprising customers, and adding value to their lives. Think about how to deliver a unique experience to consumers and build a strong and long-lasting relationship with them. Make the product personal so every time they pick up a subscription product, there is excitement. Subscription customers are most motivated by financial incentives, such as discounts. Convenience, cost-effectiveness, and a personalized experience are the most important to them. Yet, they also value the ability to unsubscribe at any time.
A key challenge for all subscription e-commerce providers is matching supply and demand. Consumers are much more likely to cancel when they can't align the delivery date with their actual needs - for example, if they are going on holiday. Ensure that your subscription is flexible, and the customer can change the date of the next delivery.
In addition to the product or service itself, the customer experience is one of the key traits today. It has a big impact on why shoppers will choose your online shop over a competitor's. The only way to fully reap the benefits of subscription is to choose a platform that provides full control, convenience, and technological support.
IdoSell is the right business partner. We will be launching a new service - the subscription sales module - in the coming weeks. You will launch the functionality easily with no additional implementation fees.
The subscription model allows you to create a stable and predictable source of revenue for your business. It is also an excellent way to build customer loyalty, due to the continued use of your company's products or services.