Keep Customers Coming Back for More: The Subscription Model
From goodie boxes to monthly memberships, the eCommerce subscription model is just getting started.
What’s better than gaining a new customer for your eCommerce business? A new customer who keeps coming back, can be a great bonus!
The beauty of an eCommerce subscription model is that you can obtain a customer who commits to your product not just once. In turn, your company offers a recurring product delivery and long-term reliability. Subscriptions offer future revenue commitment to a brand and the ease of click and forget purchasing.
How does a subscription model work, and who can benefit from it?
The number of subscription services available today is vast and ever-growing. From personal grooming tools with the Dollar Shave Club to doggie delights at your doorstep with Olly’s Box, contemporary consumers have embraced a subscription model service in every popular retail vertical in Australia. If you buy a product online, there’s likely to be a subscription-style solution with monthly or bi-monthly refills.
For a large or small business, offering a subscription model creates the opportunity to gain a dedicated and create an ongoing relationship with customers. The chance to unveil new products or up-sell new services to an already loyal audience presents valuable potential for growth.
It’s also immensely popular. According to Zuora, 70% of Australian and New Zealand businesses plan to shift to offering subscription models. The Australia & New Zealand subscription economy is projected to grow at the rate of 2.7 percent annually from 2020.
“Make it feel like Christmas every month.”
Zuora’s study found that both Generation Y and Baby Boomers spent 7% of their average monthly disposable income on subscriptions and recurring goods and services. But why?
Great subscription models can be broken down into three major types:
– Replenishment (32%), which offers time and money savings, other than convenient ordering processes for essentials like vitamins, groceries, coffee, toilet paper and soaps
– Curation (55%), which offers a “surprise and delight” delivery from experts who personalise or tailor beauty, beer, wine, food and other products
– Access (13%), which offers exclusive memberships that are enhanced with specific perks, training, or limited releases
Popular Picks in the Field
Nowadays, countless companies engage customers in highly successful subscription services. While some have been conceived and run as online monthly services, others have simply added the products (and perks!) upon customer demands. In fact, the nuts and bolts of integrating subscription options into existing eCommerce platforms are quite straightforward. For example, Shopify Plus sites can easily incorporate ReCharge for recurring revenue.
What’s the next great subscription box? Check out these great services for inspiration as they all bring a little something to your doorstep!
– Bellabox, a monthly makeup mix that tops Elle’s list of beauty favorites
– Paper products arrive with ease from Who gives a crap?
– Cratejoy’s Relove Print brings once-loved books back to life
– Poni Cosmetics delivers simple, flattering beauty picks
– Beer Cartel offers an exclusive club that caters to craft beer connoisseurs
– A side of decadence comes standard with the coffee from Express Pods
– Vinomofo makes customized wine both simple and delicious
That’s just the beginning! Expect to see more subscription popping up from your favorite brands as doorstep delivery continues to grow.
Could subscription services offer awesome revenue opportunities to your company? Reach out to the team at Convert Digital to learn more about it today!