Subscription Commerce is not a new trend, it arrived decades ago with large US providers (Amazon, Netflix, Apple, etc.) and expands to all industries now: retail, fashion, IT, beauty, bank & insurance, sports, pet food etc.
e-consumers in 2021 want frictionless shopping, flexible delivery, and instant services. Subscription Commerce answers to all of these and bring an incredible growth opportunity for your business with recurring revenue, and low your acquisition cost.
Take the Subscription Opportunity
Subscription is now part of the consumption habits, 78% of international adults currently have subscription services for several reasons:
- Convenience: customers sign up once, adjust when appropriate, and get value. It can be products that needs to be renewed regularly like pet food or lenses, or it can be services. It also can be 24h free shipping that encourages customers to come to your website on a regular basis, as Amazon Prime.
- A more sustainable consumption. One example is clothes rental which items are reintegrated into the economy for a second life, or electronical products which are refurbished and sold on dedicated platforms.
- Access to exclusive services: it can be events like private sales or the possibility to buy new pieces in a sneak preview.
Leverage your existing install base to start subscription successfully
Most of the time, you put your efforts in acquiring new customers, then to convince them to come back for buying more. That results in a lot of time and money invested to increase your revenue.
Subscription turns customers who are already know the value your products/services, into loyal followers who become reliable and predictable sources of recurring revenue. The main difference between a subscriber and a buyer for a brand is trust; in a trusted relationship the customer doesn’t challenge systematically the value of what you sell as he’s already engaged.
Launch the right subscription model
Before launching your offers, take times to define the most suitable model for your audience:
- Benchmark other initiatives and collect ideas to develop
- Question your clients through surveys or exchange directly with them to confirm their interest
- Manage your costs: define objectives, associated costs and be surrounded by a trusted partner which help you achieve your objectives
Easily implement subscription to your e-commerce
With Valuein, you can easily add a subscription model to your online business and link it to your existing technical stack. Valuein Subscription Commerce is a smart SaaS platform that handles all aspects of the recurring revenue business.
Get in touch to benefit from a free demo!
