Subscription for regular purchase of goods to increase sales
Subscription products are an opportunity to improve your profits with predictable monthly recurring income.
In this video, we'll show you how to get started creating a subscription product:
- With a subscription product, you can easily identify your most loyal group and build a predictable monthly income base.
- Determine if your product is suitable for a subscription by studying the purchasing behavior of your regular customers.
- Subscription product marketing requires a more personalized approach that prioritizes subscriber retention and acquisition.
[Transcription]
As business owners, we are constantly working on stability. A guaranteed way to increase stable cash flow for your business is to create a subscription product in your store. Adding a subscription feature gives your customers an easy, personalized way to buy your products on a recurring basis. And it gives you the opportunity to grow because you will have a predictable monthly recurring income base.
Another benefit of adding a subscription is that you will be able to manage your inventory more precisely. When it comes to your customer relationships, a subscription product gives you the ability to easily identify your most loyal group. You will be able to deepen your relationships with these customers, offer them new and additional offers, and use the knowledge gained to provide excellent service.
That being said, not all products work well on a subscription basis. So, research, research, research. Look at how frequently your regular customers purchase to determine if it makes sense to offer them a subscription service. If you’re feeling stumped, don’t worry. We’re going through a few subscription product ideas right now.
First stop is a recurring product subscription. A recurring product subscription allows your customers to automate the purchase of products they want to receive from you on a regular basis. Recurring product subscriptions are usually long-term, which is good news for you, right? About 45% of subscription members tend to subscribe for at least one year. For you, that means revenue you can count on.
The second topic is memberships and communities. Building a community gives you the opportunity to delight your audience with great service and experiences before they buy anything. Once your community is up and running and you know it's starting to provide value to people, you can start charging for membership. That's right. The service of community is a commodity.
Create a group where your members can connect and access your exclusive members-only content. The content will vary depending on your business. It could be workshops, mentoring calls, or discounts and bonuses for shopping at affiliate companies.
You can post content using third-party apps like Facebook, Slack, various social networks, or even a website page. I don’t know about you guys, but I love a good digital product.
Whether you sell monthly themed how-to guides to go along with your products or release digital music weekly, using a subscription model can make the process more manageable. And it’s easy to set up in Shopify with the right app.
Next up is service. Selling your services on a subscription basis is a very smart way to build a paying client base. Let’s say you’re a business attorney who wants to offer your services on a monthly basis. Your subscription package might include monthly document review, contract creation, ongoing trademark monitoring, and ongoing phone and email communication.
The subscription model will help you avoid overloading your work or excessive pressure, which sometimes leads to mistakes, it happens. You can always go back to what is included in the subscription package purchased by your client.
Last but not least, the contents of the subscription box. I'm talking about you, Birchbox. Creating monthly product offerings, packaging, and the logistics of delivering packages on time and on budget are all investments in your subscription business that will show up in customer retention.
Think about it from your customers’ perspective. Signing up for a recurring purchase is a bigger commitment than a one-time purchase. You’ll want to use a healthy dose of FOMO to attract customers. Come up with creative ways to preview what’s in your boxes. This can be done through social media and email marketing. And continue to deliver what your customers expect, get feedback from them, and reward them by growing your business.
When building a subscription model, you need to have a solid email marketing strategy. There’s no getting around it. Apps like Recharge and Payroll make it easy to remind customers when it’s time to refill their subscription. You may also want to use conversation and deepen the relationship with your customers so they stay for the entire subscription period. This way, you’ll retain your subscribers to offer them a re-subscription.
We hope this guide has helped you think about how to add a subscription model to your business. To check out the apps mentioned and additional resources, check out the links below. Thanks for watching.
[Next steps]
Check out this article to learn how to add subscription products to your business.
Here's an example of how you can increase your overall revenue by bundling related products based on a solution, topic, or interest found.
Check out these apps that were created to create a subscription service for products: