If you are planning for starting a monthly subscription business online then you are going to take action in exactly right time. Monthly subscription product demand is increasing day by day in United states, UK, Canada and Australia and the opportunity in this business is huge because once you get one customer then he/she will be your recurring customer for next month and so on without marketing expenses.
From Customers Point Of View : – Customers are moving towards subscription-based business because they want every thing hassle free and with ease for example, instead of buying a product every month why not subscribe for it and it will be delivered to door step like magic every month. It will save time and he/she does not have to order the product every month. Customer can renew subscription periodically and it can get activated automatically depending upon mode of payment. So, with this subscription-based service life became easier for customers.
The business of Subscription is the mixture of challenge and profitable:
The business of the subscription looks to be very challenging; however, when one starts doing, the same would be quite interesting and easily done. There has to be well-defined aspect of the product knowledge to decide and provide the same as the subscription to the customers. There has to be complete information and also the addiction to what you deal with. Yes, only then you would be able to decide as to how much you could give as the subscription.
The people who are well-versed in the part of the product know the pros and cons of the sale. This is because all the cost that is included in the subscription box has to be aligned with the profit that would be targeted or speculated in the future. The product that would be best for women and men would be the beauty products as they are in great demand.
The interest that needs to be induced:
There are various things that one needs to keep in mind that would fetch you the profit in terms of the subscription done eventually. First of all the products that are given as a freebie has to be arranged and also the amount of the weight for which the freebie has to be decided and then accordingly given as free with the products as a promotional aspect.
The customers will be given the products in order to prove that they are quite important for their business. This would be required on the reasons that they are identified as the most important customers and that they are counted among the best for this.
There are suppliers who are contacted for the same and they need to be convinced that the products would be sold at the price that would benefit both the subscription company and the supplier. This is in the hands of the person who concludes the deal with the supplier by giving the supplier the option of providing the purpose of earning the best profits based on the subscription that is offered in this case.
The customers are held for a long time due to the subscription that is offered and the subscription company could be sure of the aspect that the customers are guaranteed for the particular period of time.
The increase of the demand from the customers:
The online monthly subscription business is a very interesting concept of business and would give more profit if done in an organized manner!
It is also seen that the monthly subscription that is opted by the customers is because the product has been provided to them at the price of the extra benefit. This would be a less expensive deal from the point of view of the customer. The customer is getting the product for a lesser price for a particular period of time or the products are provided it for a free trial for some months as well.
The usage of the product would make the customers to get accustomed to the product and accordingly there would be demand for the same for the price offered. This is a psychological aspect that would result in the increase of the customer’s demand after the product usage is satisfactory. Hence, the right product has to be delivered to the right customer.
Choose the customers identifying their ‘pulse’:
The choice of the customer to whom the subscription offer is given has to be decided based on the buying regime. For this the selection of the people who would be included in the list of the subscription receipt would be tagged under the concept of the ‘best buyers’. This will enable the subscription company to analyze and find out the style of their purchase and accordingly provide the same accordingly.
There are lot of chances that would be looked into, if scanned well with the strategy of the survey adapted by the subscription company. This would also assist in getting the right customers through the ‘bird’s eye-view’ and getting the satisfaction that we are going to do business with this set of customers for a long period of time.
Creating a online website for subscription based business
Creating a website for subscription-based business is similar to creating a website for any other e-commerce site. You need to hire a web-developer and designer and you are ready to go. Plan and structure the layout of the site with good user interface and Call To Action. Set-up or integrate a payment gateway for accepting payment from all known sources including credit card, debit cards and other. Integrate a payment gateway for PayPal and other online payment processing companies.
The logistics cost adhered as per the budget:
The most important way that is used to ship the products would be a challenging question. However, even the smallest savings done in the cost towards this business leads to the increase in the profit. The reason being that, as it is the subscribed products are given at a lower rate and the same offered at a price that would have a minimal profit.
The cost has to be aligned as per the requirement, depends on whether the transporting of the products through the third party logistics is cost effective or you can ship the product with your logistics as the same would come under your cost of product.
There has to be a decision made based on the fact that the cost does not hit the profit that is strategically planned accordingly! There has to be a religious pattern of ‘penny wise’ adage followed here.
Marketing.. Marketing &&& Marketing…..
The best way to get the customers growing is by the advertisement that is shown on the social media. Another most commonly used marketing technique would be to provide the offer through the vouchers. This will influence the use of the products that are subscribed with the offer given. The sales that is done with the aspect of the featuring the section of allowing the best part of the subscription would avail more demand for the subscription. Uploading the videos is also a good option for increasing the sales in this regard.
Hire an SEO (Search Engine Optimisation) Expert:-
SEO expert will help you to gain visibility of your website in major search engine Google. The search trend of subscription production is increasing day by day drastically and this is the best time to grab the market with SEO. Select the keyword based on the products that you are selling online and check competition for it. SEO expert will help in selection of keywords for which you want to rank on Google and other search engines.
The discounts given for the products in the box would increase the sale:
There are discounts provided for the products that are kept in the subscription package. The packaging also matters as there is demand for the subscription products based on this. There are companies who do a ‘flowery packing’, that would include the unique way of packaging so that the customers are happy to receive the same. There can be gifts to the peers of customers as this would be a different experience both for the person who orders it and also for the person who receives the subscription box!
The content and the quality have to be equally important:
There is always the competition or the tug of war between the content and the quality of the product. This has to be the best as it enables the customers to come back. There has to be a balance between the two aspects in such a way that the customers would help the subscription business to be increased eventually based on the content given to the customers. This is because; the limited customers have to be held with the company for a long period of time. The strategy that is involved would be concentration on both the content and quality of the product that is involved in this.
The relation maintained with the customers brings business:
At every stage of the transaction of subscribed product, the customers have to be contacted and informed that the current process of the order will be delivered as per the time speculated based on the strategy of the logistics. It would be once a week or once a month or within the span that is decided for the subscription to be provided to the customers.
Contacts are very important that are received with the help of the long time relation. Notifying the customers and the acceptance of the feedback from the customers is another best way to stay stable in a business such as this one.
Starting a monthly subscription business is not that challenging if you have vendor contacts. Selection of product will play a key role in this business and one need to do complete research in order to find the profitable subscription product for customer. You can get idea of increasing product demand in Google trends and can decide accordingly.