In a subscription model, a customer subscribes to receive a product or service at a desired frequency. In exchange, they will pay a recurring fee until they wish to terminate the subscription.
Subscriptions are convenient for the company!
The subscription model makes it possible to predict revenue as the company knows when and how much its customers are paying. They can also decrease acquisition costs as these customers already know and trust the brand or business and are willing to repurchase.
Subscriptions are convenient for the consumer!
If a customer knows they can get what they need, when they need it, sign them up. Subscriptions also make it easier to develop deeper and lasting connections. As long as the company provides what they promise, the customer will continue to subscribe. This is a great way to introduce subscribers to new products as well. If they already like other products the company offers, they are more willing to try other offerings or products from that company.
It comes down to loyalty! When a company has loyalty from a customer, that customer is willing to commit, to continue purchasing, and maybe even advocate for the company. The subscription model makes this even easier.
Let’s take a look at some of the new trends in subscription services.
E-commerce Everything
Subscription e-commerce continues to grow and like I said earlier, there are subscription options across just about every industry, and especially in e-commerce. Clothing rentals, T-shirt of the month, meal delivery, snack boxes, beauty products, shave clubs, the list is endless. Make it convenient for your customers and they will come!
Flexible Subscriptions
Many companies are now offering much more flexible subscription options that allow customers to customize their deliveries or pause or cancel their subscriptions at any time. I get some beauty products delivered from Truly beauty. I have some of my favorites set up as a subscription, but I set the frequency of each product based on how fast I go through them. I have complete control which makes it convenient for me.
Personalized Subscriptions
We can expect to see more personalization in subscriptions as well. Companies are using data and technology to personalize their products and services for individual customers. This can include product recommendations tailored to your specific interests or needs. After taking a quiz on Prose.com, I was given my custom hair care formula and suggested products which I could buy once or add to a subscription with added benefits.
VIP Experience
Instead of the basic subscription service, some companies are providing the VIP experience. This could be access to special products, exclusive discounts, rewards or loyalty points. I just mentioned if I added my Prose hair care products to a subscription, I am rewarded with an extra discount plus special perks, like receiving every 10th hair care product for free. Extra benefits I wouldn’t receive if I choose to just buy one off.
Service Subscriptions
During and after the pandemic we’ve seen a rise in subscription based access. Instead of selling products, these companies are offering subscription-based access to their services. Online yoga or workout classes, online courses, even mental health counseling.
Sustainable Subscriptions
Subscription models are also being used to promote sustainable consumption. Dr. Kaitlin Mattos, assistant professor of environment and sustainability at Fort Lewis College, suggests in an interview, signing up for a local CSA box so you can get farm fresh produce from your community. “Local food, like produce from a CSA, is the best product to get via subscription because the subscription supports the farm that produces your food and it gives the farmers a chance to even out the produce market,” she says. “You are also eating more sustainably when you eat food that is in season and has traveled [fewer] miles.” Other suggestions include necessities such as household cleaners, laundry soap, and everyone’s favorite, toilet paper.
Textual Aims to Make the Subscription Model even Easier!
Text to buy is a feature that allows customers to purchase a product or subscribe to a service through text message. This feature can be used to streamline the subscription process and make it more convenient for customers. By allowing customers to subscribe or make a purchase via text, companies can provide a quick and easy way for customers to sign up for a subscription and start receiving their services or products.
For example, a customer could text a keyword to a designated number, and then receive a reply with a link to a sign-up page. After entering their payment information, the customer could then start receiving their subscription-based service or product.
Text to buy can be especially useful in a subscription model because it allows companies to reach a wider audience and make the process of subscribing more accessible. Additionally, it can be more convenient for customers who are looking for a quick and easy way to sign up for a service.
