Subscription businesses are the future, are you ready?
In 2019, the subscriptions market passed the $10 billion milestone, which means that in the past decade, it increased its revenue more than 175 times. Since 2014, the market has had an 890% increase, impressive, huh? Well, with the pandemic and people being stuck in lockdowns, it increased even more.
According to the UBS financial services, in 2021 the subscription economy’s worth is $650 billion and by 2025 is expected to grow to $1.5 trillion.
These numbers represent the rise of a new behavior in consumers that every business owner and retailer should take advantage of in some way. Whether it is completely transforming their company into a subscriptions business model, or to just include a subscription box option for customers on their online store.
Either way, if you are an online seller and you are looking for ways to increase your sales, taking advantage of the subscriptions business model is the answer that will also help you create long-term relationships with your customers.
How can you start?
If you don’t have a company yet, then start by coming up with the business idea, keeping in mind that the problem you aim to solve should be focused around a product or a service that can be sold as a subscription. It can be make-up, plants, flowers, skin care products, or anything you want; the most important thing to take into account is that you have to be as detailed as possible when you analyze your market fit, competitive analysis, and customer profile.
Once you find your niche, you have to understand who your competitors are, how they are offering their subscription products or services, how they are communicating with their customers and how you can be not only different from them, but especially how you can become unique.
The path to get traction
Converting your existing and prospective customers it’s an everyday challenge, and so, having the following tools and methods to make your users opt in, is what it’s going to help you get the traction you need not only to survive, but also to get the consistent revenue that a subscriptions business can give you.
- Use a 360 payment checkout
The payment gateway you choose is extremely important to incentivize your customers’ purchases. It has to be fast, easy to use and secure, so you can ensure a shopping experience that makes them want to get that subscription for more than one month.
The Subscriptions Cloud App is the tool that really embraces the 360 meaning, where your customers not only can subscribe to any of your products on a daily, weekly, monthly, annually or any frequency you want to offer them, but they can also pay One-Time Purchases as well as Mix Carts.
This means that when you have the Subscriptions Cloud App, you don’t need to add an extra checkout, or to deal with Third Party URLs, because Subscriptions Cloud can handle any type of payment your customers may want.
On the other hand, the payment gateway you choose must let your customers unsubscribe easily to your products, as well as manage the subscriptions they acquire with your company; and Subscriptions Cloud let’s you do that. It gives your customers the option to cancel subscriptions, edit the ones that they currently have and get new ones with no barriers.
- Use an enterprise-level platform
Keep in mind that the subscription business is very competitive, and so the way to stand out from your competitors is by giving your customers the smoothest experience on your online store; which means that your site must be fast, mobile-friendly to attract younger customers, with an appealing design to your target users, and specially it has to let you handle sales tools and massive orders, that can help you scale with no limits.
That’s why we recommend online sellers to use BigCommerce, which is an enterprise-level platform that can handle the growth of any business, without compromising the speed of the site, the SEO, the design flow, or the performance of the payment gateways.
Besides, the Subscriptions Cloud App is currently built only for BigCommerce store owners because we are committed to help them sell subscription-based products or services without having too many BUTs like they used to have before our app came up.
- Improve your Email Strategy
Email is essential for the growth of any business and especially for the growth of a subscription-based brand, and the data keeps showing that. According to Celtra 77% of shoppers are more inclined to buy from brands that personalize content across their online shopping journey; 32% of them want to see inspirational content for gift ideas, and 35% prefer Email communication from brands as opposed to receiving direct mail.
This means that if you are just starting out your business or if you already have one, but you haven’t taken advantage of Email Marketing, then you need to start using it, but don’t be too annoying because 69% of customers will unsubscribe if you send them too many emails. However, create your strategy to announce discounts, new features, to give them tips on how they can improve their sales, and most importantly, ask for feedback so you can improve your customer experience.
- Go full on Social Media
In here, also keep in mind the data which affirms that over 3.6 billion people use social media, and 71% of users who have a good experience with a brand on social media will definitely recommend it to a friend. Therefore, create your social media accounts if you don’t have them yet, and use it as a communication method with your customers.
Consistency is key, so continuously create content to increase your engagement and increase your brand awareness. You can share pictures of your products, give sneak peaks of your subscription boxes and even host giveaways to incentivize purchases and increase your audience.
- Apply Upselling and Cross-Selling
And last but not least, use upselling and cross-selling options for your customers. Upselling is when you offer a better upgraded product from the one that they already chose, and cross-selling is when you offer them a complementary product to the one they selected.
We recommend offering the upsell and cross-sell products on the cart page, although upsells after checkout have shown great conversion rates. You can also use your Email Marketing Strategy to promote those products, whenever a customer just purchase a subscription, and with the Subscriptions Cloud App, your users are going to be able to pay for their One-Time Purchases and subscriptions at the same time without them having to go through different transactions.
Finally, the most important thing you should take into consideration is that testing is key, so every tip or strategy you apply from all of this has to be tested multiple times, which will help you get to know your customers better and increase your sales.
Go check out Subscriptions Cloud and see all the benefits we have for your business!