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5 reasons to offer subscriptions as the bedrock of your sales

Let subcriptions be your bedrock

Don’t like having to adjust for inconsistent sales? Having more sales than you expected is amazing, but having less is stressful. If you devise subscriptions for your customers, you have a comfortable foundation or bedrock of sales to rely on. From there you can sell on top and not have to worry as much about a bad month... or erosion.

What offering subscriptions will do for your business

1. Customer retention

Retention science has carried out a survey the results of which showed a 20% increase in repeat purchases for subscription offerings vs retail or flash sales.

However subscription only has a 30% retention rate.

2. Steady base income (bedrock of your life)

Having a subscription based product offering will provide a more steady income with less fluctuation involved. Each month you’ll know how much money will be coming your way and you can use that knowledge to limit or increase spending risk free.

3. Opportunity

If customers are subscribing to your business you have gained knowledge about what they like to buy, which opens up opportunities for cross-selling, upselling and even selling by sample.

You can cross-sell by offering a package subscription that offers two types of product or a bigger version of the current subscription for upselling. You could also introduce new products by including a sample with a subscription.

4. Value over time rather than short term value

Special events such as sales and promotions may boost spending greatly for that short term and a small amount long term, but they stretch your stock, your staff and your systems to the brink.

The greatest long term gain will come from subscriptions, and that is without stretching your business at peak times, as you expand to meet the demand and have time to adjust.

5. Customer engagement

Providing a product or service over an extended time span means more time for that customer to be exposed to your brand and therefore more opportunity for that customer to build an image for your brand in their head. You just have to make sure it’s a good image!

A customer having a good image of your brand can drive them to refer you to friends and family, and generally think of your business first when looking to buy.

HOW

You can gain all these advantages through two methods:

  • Offering a subscription service which lowers prices for members or offers a benefit
  • Creating a subscription box full of your products

Once you have chosen your method you need to choose a price for the subscription and the products/benefits included.

The subscription service could offer one or more of these:

  • Free postage
  • Exclusive discounts
  • Packaged services
  • Other company specific benefits

Here is an excellent blog post from our eCommerce platform of choice, LemonStand, which will help price your subscription box.

So do you have any ideas for your business? And more importantly are you going to try offering a subscription service?

Many subscription box companies:

Ink Drops - Stationary

Polyvinyl - Music

Bloom & Wild Flowers

Allotinabox Gardening

my Vitibox - Wine

Beer52 - Beer

London Tea Club - Tea

eteaket - Tea

Pact - Coffee

Kopi - Coffee

Hotel Chocolat - Chocolate

The Sweet Club - Confectionary

Taffy Mail - Confectionary

Sweet Drop - Confectionary

Conscious Box - Ethical Snacks

the nutribox - Gluten Free Snacks

Primal Snack Box - Free-from Snacks

graze - Snacks

Pong - Cheese

cure & simple - Bacon

Gousto - Recipe & Ingredients

Flavour Full Stop - Artisan Food

Close Shave Society - Men's Shaving

Briefd - Men's Boxers

A Year of Pants - Women's Underwear

Socked - Socks

London Sock Co - Socks

Wantable - Fashion

Box Delux - Luxury Gifts

myntbox - Jewelry

The Fragrance Shop - Perfume

The Willoughby Book Club - Books

My Glasses Club - Glasses

Blind Surprise - Surprise gifts

My Geek Box - Variety of Gifts

Top Collar - Dog Treats

meowbox - Cat Treats

Pondi Tacklebox - Angling

Jogg Box - Running Products

Zbox - Geek box

 

If you need a quick "how to" take a look at the infographic by Cratejoy you have most likely been drawn to by now.

If you need help setting up your eCommerce subscription service don't hesitate to Contact Us!

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