How to Make Money With Subscriptions

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Do you have subscriptions for your socks and underwear yet? What about a subscription for your dog’s food, or cat’s supplements? If you haven’t started purchasing your essentials via subscription yet, it’s time to start. With all the decisions consumers have to make these days, decision fatigue is understandable. So, make it easy for your customers to shop with you - repeatedly.

The way it's framed varies - call it auto-ship, or a membership but it's all based on a subscription model. As a business owner, it's a great chance to ensure customer retention and to give you some predictability around revenue. Consumers are already familiar with paying for things on a recurring basis - from their internet services and mobile phones, to donations to charitable organisations and their Netflix subscription. Many people find it convenient in an era where we are overwhelmed with choices.

How To Make Subscriptions Work for Your Business

Now, ten years ago, if we told you that people would subscribe to receive a new pair of socks or undies delivered to their door each month you probably would have been doubtful that it would take off. But that's just what MeUndies offers its customers and they have been steadily growing since 2011 when they launched. So if you think it can't work for your business, think twice.

Think of your Customer's Needs

In the case of NRG Plus, who sell supplements for cats and dogs, they know that a pet lover will need to replenish their supply regularly. So they have made it simple for the customer by offering the product on a subscription basis. This means you can buy your cat's supplements and choose to have them automatically ship every month, every 2 months or every 3 months. It saves your customer from having to make the purchase regularly and it ensures that their repeat purchases happen with your business.

It's Not Just Physical Products That Work With Subscriptions

Even if you don't sell physical goods, you can still harness the recurring revenue that subscriptions have to offer. Perhaps you are a running coach, or an expert in creating paleo meal plans - there is still a way to make subscriptions work for your business. Whether you are creating digital products for your clients, or providing expertise to them in a premium content area of your website - setting up a subscription payment option is a great way to go.

Flexible Options Make Subscriptions Easy

Once you've considered what you will sell, it's easy to to adjust your options to suit. There are many features that allow you to customise your subscription offering:

  • Allow customers to select their billing cycle - you set up the options they choose from

  • Flexible checkout options - include one-off and subscription payments in a single purchase

  • Automatically email customers when their subscription renews - offer additional options when their subscription expires

  • Charge a sign-up fee - a simple way to account for your set up costs while still allowing separate recurring payments

  • Subscription & account management - customers can modify or suspend their subscriptions themselves

  • Switching subscriptions - you choose whether you want your customers to be able to upgrade or downgrade their options

It's time to think about how a subscription model can work for your business. Those that offer products or services on a recurring basis see more predictable recurring income. They also have higher customer retention rates and the ability to manage time and inventory more accurately.

From the customer's side it creates a stronger relationship with more trust and makes things simple for them. If you are offering something that isn't generally offered via subscription, you will also have the advantage of being the first in your field to do so.

Contact us at Moxwai to discuss how subscriptions can work for your business and how we can build them into your website. It's time to create more convenience for consumers with benefits to your bottom line too.

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Email: info@moxwai.com

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