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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.
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.
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
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
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.
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