Subscription services have been around for decades, but the last few years saw a boom in the number of offers out there. The primary reason is that today’s consumers are more focused on price and discounts than ever.
Future of eCommerce
The future of commerce is subscription-based. According to Insider Intelligence, US eCommerce sales are expected to cross the $1 trillion mark for the first time in 2022. The pandemic changed the way consumers look at eCommerce for purchasing needs.
While the shift was drastic, consumers are still hesitant to accept the shift and embrace subscription models fully. That’s where emerging technology and new channels come into play.
Subscriptions offer a way for eCommerce brands to stand out and build brand loyalty.
For example, Cox basic cable offers its subscribers personalized entertainment with on-the-go streaming via their app, 140+ channels with free HD, add-on options, and you can change your TV service whenever you want. Check out their website to avail incredible deals.
Benefits of Subscription
Ecommerce companies investing in subscriptions can enjoy significant benefits. For one thing, the subscription makes it easier to manage their inventory and logistics. It also allows them to make recurring revenue without building a large sales team. But the best part of the strategy is the recurring revenue itself.
These services offer many advantages over traditional billing structures, which include giving customers peace of mind that they have paid in advance and don’t have to worry about canceling their subscription back and forth. According to Datassential analyst Mark Brandau, “it’s tough for someone who has an account on your site just to walk away.”
So What’s In It for the Customers?
First, it’s essential to have a firm return policy. It ensures that customers won’t be stuck with filler products for months and feel cheated out of their money. Second, it’s wise to offer various options so that customers can find an effective plan that works for them. Only then can you sell a recurring subscription service as something that benefits your bottom line.
When establishing a recurring product plan, be sure to take into consideration the following:
- Get the Right Price
Subscription pricing must be competitive and affordable. If your customers find the cost too high, they won’t sign up in the first place. But if your subscriptions are too inexpensive, your customers might not be able to trust your quality.
- Offer Customization
Customization is critical when setting up a subscription program because it allows you to customize the product or services according to your customer’s needs at different points in time. The customer can choose when they wish to receive the monthly delivery. They could choose three months upfront and save, and then get it delivered on the 15th of each month, then on the last month before shutting.
Tips for a Successful Subscription Model
Here are some tips for making your subscription model successful:
- Be transparent about the cost and benefits of your service. Be clear about what the experience is like for customers and what happens when they cancel.
- Be upfront about how often customers receive new products or how long they last. Please make sure you’re clear on how much time passes before they get a new shipment and how long they have left on their current order.
- Make sure your customer service staff knows all pre-order questions and concerns beforehand so they can be addressed in advance of the need being raised.
- Keep in touch with customers via email and social media as your business grows, so people know who is in charge and what’s happening.
- Your customer service department should not be the first place dissatisfied customers complain about a product or service.
In the end, if consumers can find value in an auto-refill service that is easy to subscribe to, even easier to cancel, with impeccable customer service, subscription commerce could be a highly beneficial relationship for brands and customers alike.