You’ve probably noticed that having a subscription-based business is all the rage and for good reason.
No matter what you’re trying to buy, almost every industry has a subscription box you can buy. If you’re ready to get in on the subscription boom, you need to have a good idea of how to build this business model.
The subscription-based business model is different than a traditional business, and you have to be ready to treat it differently. Continue reading this article to learn more about being successful using this business model.
Is This Business Model Right for You?
Before you start planning out your days of subscription-based success, you need to make sure it is the right business model for you.
Is there competition for your company? Does your company solve a problem no other company solves?
Do enough research that you have data to make a clear decision that this is a good idea for your business. If you determine it is a good business model for you, get to work.
Find a Reliable Recurring Payment Provider
The payment solution you use is extremely important when you have a subscription-based business. If your payments don’t go through like they’re supposed to, this is going to cause serious problems for your business.
There is no shortage of payment solutions, but when you’re looking at your options, you need to keep your goals and needs in mind. You should also be looking for a solution that provides the best user experience possible.
When you choose a good payment solution, you’ll be able to put together any payment scenario you want to make your business successful.
Consider Free Trials
Depending on what you’re selling, free trials can be the best way to get people used to doing business with you. People often aren’t sure about new companies and if they want to spend money with you. If you show them how good you are through a free trial, you can often secure long-term customers.
Be Smart About Pricing
Getting customers to buy your product has a lot to do with your pricing strategy.
Whether you have one product or service or if you have multiple options, you need to be clear about your pricing, so you don’t confuse your customers.
Don’t try to hide terms and conditions from your customers. Don’t give people a reason not to trust you. The fewer possibilities and options you give people, the more likely you’re going to make a sale.
People don’t want to make a bunch of decisions. Make your pricing and buying process simple, so people can get what they want without having to use their brain. Do the thinking for your new customer.
Automation Is Your Friend
Don’t try to do everything on your own, make your team do everything manually, or have the customer have to do anything. Making it easy for customers to auto-renew their subscription is a must if you want to have a successful subscription-based business.
While you do want to have payments automated, you also want to make sure they know how to opt-out of payments easily. You don’t want to upset your customers by trying to keep them longer than they want to stay.
Customer Support Is Key
Even though your payments are automated, that doesn’t mean that you can go off to the beach and forget about your customers.
Having good customer support in place is essential. If you don’t answer your customers in a timely manner, they are likely to navigate to the unsubscribe area of your site and opt-out.
Besides responding to your customers when they message you, you should also communicate with your customers on a regular basis. If you’re just taking their money and providing them with the products, you’re fulfilling your part of the deal, but you’re not building your relationship.
Send out surveys and see what people want to see in the future. Find out what people love and what people hate about your products and services. When you listen to your customers, you’re going to be able to keep them happy and subscribed for much longer.
Keep an eye on social media as well since people often tweet and @ their favorite brands on different social media platforms. If you notice one of your customers mentioned you on social media, react to it, and even drop a comment to let them know what your brand is listening to them and grateful for their business.
Don’t Make It Too Easy to Unsubscribe
You’re going to have subscribers that decide they no longer want to do business with you. When this happens, you need to decide how difficult you want to make it for them to unsubscribe.
You can find out more about how much friction is enough friction, so you don’t anger your exiting customers and cause them to give you bad reviews.
Finding the sweet spot where you have enough friction that you can save some of the people from opting out and not upsetting them is a must.
The Subscription-Based Business Model for the Win
Now that you understand more about the subscription-based business model, you’ll likely see how much sense it makes.
Do you want to learn more about building a business online? Our site has many articles that teach you about business and beyond.
Browse our business-related articles, find some that will help you as you’re building your business, bookmark them, and come back soon to read more.
