Do you want to take your eCommerce business to the next level? If you don’t know where to start, we are here to help you start baking. This blog will walk you through creating a subscription offering and what to consider in terms of your audience and what they are looking for. We will also discuss why subscription offers are so mouthwatering to customers and how they are taking the eComm world by storm.
What Are Subscriptions?
Subscription offers from eCommerce businesses are a simple and affordable way for customers to consistently get the products they need or want. A subscription is a great way to build relationships with your clients and ensure that they continue to choose your goods and services. If you are considering offering your customers a subscription, it is important to understand what business models work well. There are three primary business models connected with subscription offers.
- Replenishment Model. Some eCommerce businesses refer to this model as the Subscribe and Save model. In many cases, a replenishment model subscription is a way for customers to ensure that they receive their essential items automatically. If you follow this business model, customers will subscribe for whatever products they need, and you will send them at a regularly scheduled time.
- Curation Model. This business model is likely most familiar to customers because it consists of subscription boxes. These boxes may include clothing, accessories, food, makeup, and more. They appeal to customers because they are often much more personalized and curated specifically to interest the subscribers.
- Access Model. Rather than subscribing for a box each month or getting their essentials replaced regularly, some customers prefer an access subscription. This business model has customers pay a flat rate at regular intervals in exchange for special perks or privileges from the company. This may be in the form of discounts, additional merchandise, or whatever the company deems appropriate.
Each business model for a subscription offer has positives and negatives. It is up to you to determine who your target customer is, what sweet treats they would be interested in, and how you can provide them with those products.
Steps to Create Your Subscription Offer
Whipping up a subscription offer for your eCommerce business is exciting, but it is essential that your plan is not half-baked. Here are four easy steps to follow before you launch your subscription.
- Choose Your Business Model. During the first step, you establish the perfect recipe for your subscription. You need to determine who you want to sell your subscription offer to and which business model will allow you to reach those customers most effectively.
- Select Your Products. Once you have chosen the best business model for you, it is time to gather the right ingredients. Be attentive to the products you include in your subscription to ensure they will pique your customer’s interest.
- Establish Your Prices. This may be one of the most essential steps in the process. Take the time to assess the value of the products you are including, what expenses you may have, and how often the subscriptions are paid to help you determine the price. There is also flexibility here to offer subscriptions at different price points.
- Market Your Subscription. Show off what you have cooked up! For your subscription offer to be successful, it has to be seen by your customers. Your website and social media can play a significant role in this step, along with more traditional marketing like signs and flyers mailed to customers.
3 Tips for a Successful Subscription Business
If your subscription offer is set up and planned properly, it can be extremely successful. These offers appeal to customers’ appetites because they offer products curated for their taste buds in a simple and affordable way. A few things you can do to help encourage success are:
- Establish Clear Goals. Before launching a subscription, it is important to know what your goals are, both short- and long-term. What do you want to accomplish with your subscription? Whether you are hoping to draw in new customers, expand your revenue stream, or sell a specific amount of product, it is essential to know what you are aiming for.
- Personalize Your Offerings. This can be easy if you know your customer base well and are familiar with current trends. As your subscription offer grows, you can easily include products you know will appeal to your buyers. In short, the experience will make you a well-seasoned cook!
- Focus on Retention. When you are first starting, you will have to focus your efforts on drawing in new customers. As your business becomes more well-established, you must find ways to keep the customers you already have. This helps you build relationships with your customers and is more cost-effective, allowing you to bake the most out of your business.
Think it’s time to add this sweet treat to your marketing mix? If you need a little help, we’ve got you! Contact CakeCommerce today to get started.
