Subscription business

Year after year, the number of successful subscription-based businesses has grown exponentially during the previous decade. From billion-dollar unicorns to lucrative small firms that provide a good income and a good quality of life for entrepreneurs, the term "successful" can have many different connotations. In any case, the subscription business economy is here to stay and has a bright future ahead of it. You're in luck if you want to start your own recurring revenue business:

What is a Subscription Business?

subscription business website with Strikingly

Image is taken from Strikingly

A subscription service is a company that sells items or services regularly, such as once a month or once a week.

• Curation

This is the most popular sort of subscription business, and it comes in three flavors. Clothing, cosmetics, and pet accessories are examples of such things. What makes these unique is that the consumer isn't always sure what they'll get. Thus surprising and gratifying them is an integral part of the experience. Ipsy, Stitch Fix, and BarkBox are three of the popular curated subscription box business.

• Replenishment Subscriptions

This is a regular order for consumable household goods like food or cleaning supplies. Amazon Subscribe & Save delivers things like cereal or toilet paper at regular intervals, and Dollar Shave Club's periodic razor shipments are two examples.

• Access Subscriptions

Customers pay a monthly charge for access to content or a premium service, such as free shipping. Examples include Netflix, Amazon Prime, and online publications.

Benefits of Starting a Subscription Business

Subscription eCommerce firms, in a nutshell, provide online buyers with a convenient, tailored, and cost-effective option to buy what they want and need consistently. Meanwhile, businesses can grow by generating regular monthly recurring revenue.

Let's take a look at the advantages of a subscription business model:

1. Consistent Revenue

Knowing how much money comes in each month makes everything easier, from sales forecasting to inventory planning. It also means you know how much you can put back into your company's growth.

2. More Money in Your Pocket

Zizzle subscription business website

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Every subscription business requires full payment upfront in exchange for a discount. This buffer can give entrepreneurs much-needed peace of mind in addition to helping with cash flow.

3. Spend Less on Customer Acquisition

Businesses that use a pay-per-product pricing model must continuously invest in marketing and sales to attract new consumers and boost revenue. A significant cause of startup failure is rising client acquisition costs. Consumers pay you using a subscription business model, so you don't have to invest as much in new customers to keep your business going.

4. Loyalty

Subscriptions' recurring nature creates a virtuous cycle: recurrent purchases provide more significant insights into your customers' behavior, allowing you to continuously improve the personalized experience you provide and, as a result, keep customers coming back.

5. Facilitates Upselling and Cross-selling

You're in a unique position to gain additional money from existing consumers if you use a subscription business. First, you’re developing a trustworthy relationship with your customers since you're in constant communication with them. Second, because customers already know you provide a helpful service, it's easier to sell them additional products or services.

Tips and Tricks on How to Start a Subscription Business

There can be numerous obstacles when traditional software companies shift to a subscription business model or when a new tech startup launches a subscription business. It's difficult to understand how to start a subscription box business and prioritize a seemingly unending to-do list. However, we've compiled a list of the top considerations for new and transitioning subscription-based businesses to ensure a smooth start and launch.

1. Your Current or Potential Consumers and Their Expectations

You can utilize your expertise and industry knowledge to create assumptions about what people would be looking for before you launch your website, which will most likely contain information about your subscription tiers and monthly plans. However, conduct beta testing, seek published statistics on the condition of the online subscription business industry, or even ask your present clients what they would like in a new SaaS subscription business model. Then, take some time to test your assumptions and make any necessary adjustments.

2. You Must Provide Excellent Customer Service

Establishing an excellent customer support system is one of the most critical things that B2B and B2C organizations sometimes overlook. While you may be eager to get your high-quality product or service on the market, you must consider what could go wrong and be prepared to handle difficulties, field questions, and requests, and even respond to pleased consumers eager to provide good feedback. Better yet, you should plan for proactive support to ensure success with your new customers and a simple onboarding process.

3. You Must Consider User Experience Design

Real eyes website

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Online businesses must consider user experience design in the same way they would while developing a customer care system. User experience design, also known as UX design, is now an essential part of how people engage with your company and online presence. You may have spent a lot of effort adding features to your product, service, or SaaS subscription platform, but none of them will matter if your customers can't locate it or use it.

Customers in a subscription-based business often anticipate something simple to use and provide productivity or efficiency benefits. You risk losing them as consumers for good if they waste too much time trying to set up your online subscription business swiftly and efficiently. Not only should your platform be attractive and easy to use, but your website, contact information, and, most importantly, your customer care system should all be developed with the user in mind.

4. When to Start Charging for Freemium Models

Expectations might be high with the rise of subscription services and subscription business models. As a result, you should consider your B2C or B2B appeal that may demonstrate your quality and credibility without requiring customers to make a sizeable initial commitment. The freemium model is one of the finest methods to do this.

The freemium model can help you quickly acquire new consumers into your system. Still, there’s a fine line to walk between determining whether the model is appropriate for your industry and when you should begin charging. For example, Freemium in the B2B world can refer to certain free features with a fee required to “unlock” bigger and better ones. Alternatively, freemium can refer to a month of free service followed by charging in the second month. Examine how the freemium model might fit into your subscription business; you might discover that it's an excellent method to get users hooked on your platform.

5. Keep Things Simple for Systems to Operate Together

After all, is said and done, your company must function as seamlessly behind the scenes as your product or service platform does for your clients. When your systems don't communicate well with one another, you may have problems capturing customers churning or managing your finances effectively.

You should build internal processes for billing, enterprise resource planning, data reporting and analytics, and automation before your organization gets too far off the ground. Lacking a good solution for coordinating these tasks can lead to tension and turmoil, negatively impacting your customers and subscription management. Instead, implement technologies that can streamline or consolidate all of these processes into one place to keep things simple. As a result, you'll be able to focus less on these issues and more on attracting and retaining new customers.

Introducing Strikingly to Create Your Subscription Website

Strikingly sign up

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Strikingly is a great way to get started with your subscription business website. While several platforms claim to be membership website builders, only a few are tailored to the unskilled creative or small business owner who is uncomfortable with coding and technology. Strikingly is an excellent example of a site that connects ambitious site owners with their target markets.

Strikingly provides everything you'll need to "build your website in minutes." It's easy to get started with a basic website, but what if you want to offer a premium membership subscription business to your customers?

You can include a subscription feature on your website using Strikingly. However, you should carefully evaluate both free and paid registration alternatives as you design a membership website.

Create a membership website with Strikingly

Image is taken from Strikingly

You can also get paid every month by starting a subscription business! Your visitors will be able to pay a recurring payment to become members if you create a Paid Subscription Membership on your site. You can then grant premium members special access to content that is only available to them.

Paid Membership is a great way to sell recurring content or subscription business. You can create numerous membership tiers with varied pricing and discounts for quarterly or yearly plans.

In addition, Strikingly has many simple options for converting visitors into superfans. It's an easy decision to extend or transfer platforms, with many unique features not found on other sites, such as coupon codes and free trials.

Conclusion

Companies need more ways to give value to customers as the business environment becomes more competitive. Adopting a hybrid subscription and one-time offering subscription business model is one of the most acceptable methods to do that in today's world. But, as you can see, there's a lot to keep track of when running a subscription business. For example, a haphazard billing solution can create extra roadblocks on your way to success. A high-quality subscription website building platform, such as Strikingly, on the other hand, can relieve you of some of the burdens and provide you with the best chance of subscription success.