Many businesses are growing fast and rapidly, an awesome way to kick-start your growth is by adding a subscription service. How it is not necessarily a new trick in the playbook, however, it is a hot trend that other companies are latching on to.
What is a subscription service?
It is as simple as it sounds, your audience will subscribe to your offer to receive a product/service on a timed basis (i.e. monthly, weekly subscription) at a certain price. There are lots of businesses that are built on this business model. Netflix, Amazon Prime, Birchbox to name a few of the larger organisations that rely on monthly subscribers.
How can your business utilise subscribers?
There are three key reasons to add a subscription service to your business.
- It allows you to sell your existing products to your new subscribers
- A subscription generates passive revenue for your business
- It keeps your existing customers in your “loop.”
Your business is looking to grow that means you have a pre-existing customer base to get you where you are. Just because they were your client in the past does not mean they cannot be your customer again in the future. The best way to keep a customer “active” is to include them in newsletters or sales emails. However, adding your must-have subscription service can re-spark the dwindling connection.
Selling your existing products to your new subscribers
With your pre-existing client base, you will have your original products/services that attracted your customers in the past. With your new subscribers that are receiving your monthly service, why not send them sales emails or leaflets when they receive your products. It is only going to help retain them in your businesses ecosystem.
Generate passive revenue for your business
Now, it is all well and good creating a fun service for your business, but ultimately you are business, you need money to keep going. This subscription service will generate a passive income that you can always rely on when sales of other aspects of the business are down in a particular month. This service will always bring money in.
What should your subscription service be?
Without starting a whole new business, your subscription should base on your current business. Which of your existing products could you turn into a subscription? It should be relevant to business and most of all; it should not take up all of your businesses time to fulfil your goals. Here are some ideas you could use for your business:
- Create paid for online courses – what could you teach others about your industry? How could your business help others? How could you improve your audience’s ability?
- Gift boxes – e.g. if you run a florist business, every month you could supply subscribers with bouquet flowers based on what level subscription they have. You could make a tier system;
- Bronze, Silver and Gold. Bronze being your basic package Gold being your ‘all singing and dancing’ package.
- Knowledge bank – create a website that users can pay to access knowledge about your industry and include valuable guides.
