Your business probably sells products to customers on a demand basis, but have you tried a subscription service?
With a subscription service available on your online website, you can transform the way you produce and ship products, as well as increase your forecasting abilities. Not only does it do all that, but thanks to the customer-driven basis, you can build a stronger, more long-lasting relationship with your customers.
A simple concept: Your customers pay a fixed monthly fee in return for receiving a number of products every single month (and perhaps some members-only features in there too!)
What Are The Advantages Of A Subscription Service?
Well, there are more than you might think. After all, it seems such a simple option to have available to your online business. However, the results of offering a subscription service are much more interesting…
Data Gathering
And after all that, we will even tell you the best option for providing a subscription service…
Cost Efficient
In terms of acquisition and upgrade costs, it is both cheaper and easier to build with a subscription service!
As in standard eCommerce, the general rule is that selling to an existing customer is around 60-70%. However, selling to a new prospect is between 5-20%. Not to mention that existing customers are also 50% more likely to try new products available in your range.
This rule applies to your subscription service as well. With a tiered system of subscription service, you will find it far easier to upgrade customers to higher tiers in no time at all.
Scalability With A Subscription Service
With cost efficiency in mind, it is a piece of cake to turn a subscription service into a tool that easily scales up.
By focusing on lower-tier subscriptions heavily, and emphasising the value to be had at higher tiers, you can attract higher-tier subscriptions easily. This means greater, more regular income for your online business!
Once you have cracked the code and found that precise balance for each tier of subscription service – it can be left to work with customers on its own, while you focus more on the practical side of the business.
Financial Forecasting
One of the problems that eCommerce businesses face is inaccurate financial forecasting. It is a serious issue that can affect your future business plans with a single bad month.
Well, thanks to a subscription service, you can accurately predict your incoming finances for the near future. Of course your direct sales will still have an effect, but more or less you have a minimum expected income every single month.
Then all you have to do is execute more eCommerce business strategies for sustainable growth!
Customer Satisfaction
Online shopping for some, is a wonderful experience. Repetitive online shopping can be a very different story.
It is just one more thankless task that needs doing. Another 20 minutes taken out of a customer’s day. They have to first remember that they need to order products, and then browse through your online store and go through the checkout option.
If you take the trouble out of their hands with a subscription service – they will thank you.
As long as your products are consistently reliable, your customers will be happier and more confident in your services every month. This leads to more recommendations and likely, more business!
Data Gathering
Data tells you everything. Customer reviews can lead you astray with a few biased ones, but raw data can lead you to the best business decisions for your immediate future.
By analysing the data of customers, you can determine whether or not your business is giving customers what they want. By constantly evaluating your churn rate (the number of subscriptions cancelled every month) you can understand the value your business offers.
If customers feel that they are receiving less value from your products than the cost of their membership, you have an immediate warning sign. This gives you the chance to adjust your products and services accordingly – before it is too late!
How Can You Start A Subscription Service?
That is an easy problem to solve. You simply need the right eCommerce platform for your online store.
Luckily, eSuperstore not only has a subscription service available for your eCommerce store, it also has so much more. It includes:
- Free Signup
- 6 step wizard to build a personalised store
- 0% commission paid on every sale
- Facebook and Instagram Store integration
- Abandoned cart recovery emails
- International payment pathways
And much more! With our help your online business could be up and running in a matter of moments, and you can start launching your subscription service to customers with ease.
Get in contact with a member of our team today and start building your eCommerce legacy. Remember to visit our resources section to read up on the latest guides and tricks in the world of eCommerce!
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