Building A Successful Ecommerce Subscription Model

A subscription based eCommerce model can have many benefits. Subscription based models are something we have become used to in the modern day. Average consumers have a number of subscriptions running- whether these be Netflix, Fussy, Amazon or medical. A subscription model is based on trust and loyalty, and if you have these with your customers you will go far. 

Types Of Subscription Models

There are three main types of subscription models that can be used in an eCommerce business. These are:

1. Curation: these are curated product boxes by yourself that are sent to the customer each month. These can change every month, making sure the customer archives variation and a unique experience every time.
2. Replenishment: these are more suited for medical or health products. These are regular deliveries of everyday consumer products. 
3. Access: these types of subscriptions provide access-only products and services to customers. Shoppers may be able to access the other products without the subscription element, but it adds extra bonus perks.

Why Use Subscription Models

Let’s take a look at two of the main benefits from using a subscription based model for your eCommerce service.

Predictability

Subscription models naturally lead to predictable revenue. Since you know how many customers you have, and how much they pay every month, you are on top of cash flow. This allows you the possibility to manage your finances confidently and reliably. Being able to budget to improve your product or service without worrying about the implications of this on your business is a great bonus.

Building Relationships

Having a good relationship with your customers is a great way of achieving eCommerce success. Since your customers remain engaged with you as a result of their subscription, you don’t need to worry about post-purchase marketing or retainment. These budgets can be focused on product development and customer satisfaction.



How To Succeed With Subscription Models

Here are some tips that can help ensure that your subscription model eCommerce business sees the success you would hope for.

Easy Cancellation

Shoppers don’t want to feel as though they are entering a contract that it will be difficult to get out of. If they have this fear, they simply won’t sign up to begin with. The easier it is to cancel, the more people will sign up to begin with.

Introductory Offer

One way that subscription models can attract new customers is through offering an introductory offer at a discounted price. The first month can be a fraction of the price, for a smaller size of the product. This way the customer can decide if they feel as though your business is worth investing in on a longer term basis, but will encourage them to try.

Build Trust

Many customers will be suspicious of subscription models if they have had a bad experience previously. You need to make sure your customers know that it is easy to leave the contract, and they only have to stay with it if they want to. This can be demonstrated through social media, branding and good customer service.

Offer Bonuses

For customers that have committed to your service, let them know you care. Perhaps offer them a free month, or an added extra bonus if they have been using your subscription service for a long time. Personalized recommendations, or check-in emails can also go a long way to let your customers know that you don’t take them for granted.

Building a successful subscription model creates the opportunity for enhanced customer relationships, as well as increased sales for your business. Having customers on board long term gives you a chance to demonstrate your worth as a brand, as well as continuing to grow through intuitive financial decisions. If you follow the tips in this post, you will be able to watch your eCommerce subscription business grow.