With Subscription Marketing It’s easier to retain existing customers than bring new ones, Subscription model is designed to depend on existing customers to generate recurring revenue.
But this does not mean that acquiring new customers is totally out of your league there are a lot of subscription marketing strategies that will actively help you to acquire new customers.
Anyone who has worked in the subscription business would know the difficulties that are associated with bringing in and retaining new customers.
Things can be hard but not for so long cause we are going to discuss everything
about subscription marketing and its strategies to help you acquire new customers.
So without further ado let’s get started…
But, before moving in depth to the possible marketing strategies, let’s cover the basics of subscription marketing.
Table of Contents
What is Subscription Marketing?
Subscription marketing is a fancy term that is also known as subscription-based marketing in which companies leverage their ongoing subscription-based program repeatedly and regularly to deliver their product or service to their customers.
It helps businesses boost customer loyalty, building lasting relationships and yielding more revenue through newly subscribed users and retaining existing ones.
This is often used in software industries which mostly sell software as a service (SaaS), publishing retail, eCommerce, and more and can be both digital and physical.
The key to a successful subscription business is to focus on customer retention and creating a helpful, easy customer experience.
Why Choose Subscription Marketing?
“The Subscription Economy Is Set to Grow To $1.5 Trillion by 2025”
Big companies like Google, Amazon, and Microsoft have already switched to a subscription model. You can see from the above stats that the subscription model is continuously growing and is going to have a huge impact on the market.
The above reason is enough to start a subscription program and start marketing it. Other than that here are some other benefits of the subscription model.
- Beneficial for Customers: The subscription model makes purchases for customers easy as they don’t have to pay every time they want something that they use on a monthly basis.
- Generate recurring revenue: Subscription is the best to generate recurring revenue, the customer will pay on a monthly or yearly basis to continue enjoying their subscription benefits, and your business gets a stable income source on a monthly or yearly basis.
- Retain more customers: In this entrepreneurial era acquiring new customers is pretty hard. The subscription model is designed in such a way that it makes use of its existing customer base to make repeated sales.
- Reduces Customer Acquisition Cost: If you apply some of the subscription strategies listed below it can be helpful in word-of-mouth marketing which will eventually lead to a decrement in customer acquisition cost.
Types Of SaaS Subscription Models
Here are some common types of subscription models that eCommerce store owners can consider:
1. Freemium Subscription Model
Freemium gives users free access to basic features so they can try them before they buy. Advanced features like reports or automation are locked behind a paid subscription.
For example, our WooCommerce Subscription plugin has a free version which gives you basic features to start a subscription program on your store, but if you want advanced features like a manual order creation cancellation limit then you can purchase the pro version of the plugin.
This is a great subscription marketing strategy for getting users in and giving them a taste of what’s possible with the premium version.
2. Pay-As-You-Go
A pay-as-you-go model is ideal for customers who prefer flexibility and want to pay only for what they use.
An eCommerce store offering a subscription for consumable products, like beauty supplies or household items, could let customers pay only when they order.
This model appeals to customers who may not want a rigid subscription but like having convenient access when needed, making it more likely they’ll return without feeling tied down by a fixed monthly plan.
3. Tiered Pricing
Tiered pricing allows stores to offer different subscription levels with increasing value.
For example, a store selling meal kits might have a basic plan with a limited selection, a mid-tier with more meal options, and a premium tier with gourmet or specialty items.
This lets customers choose based on their preferences and budget while offering an upgrade path for more committed subscribers.
Tiered pricing helps attract a wider audience and provides clear incentives for customers to spend more for added value.
Interested in the Tiered Pricing Model?
4. Per-User Pricing
Though often used for software, per-user pricing can be effective in family-oriented or group-based subscriptions.
For instance, an eCommerce store offering family games or streaming services could charge per family member added to the subscription, allowing each user to have a customized experience.
This model helps stores increase revenue by letting customers extend services to others while only paying for additional users as needed.
5. Flat-Rate Pricing
With flat-rate pricing, a single price covers access to the entire subscription program.
For your store, this could mean a fixed monthly fee that gives customers unlimited access to digital content, like courses or eBooks, or to curated monthly boxes.
This model appeals to customers who want a straightforward and predictable payment, making it easy to manage and enticing for those who value simplicity.
It’s especially effective when the product offering remains consistent and doesn’t require varied pricing.
How Do You Market a Subscription Program?
Below are the best subscription marketing strategies to market your subscription program…..
1. Engaging Social Media Campaigns
Digital marketing is continuously evolving and you can harness the power of influence on social media to market your subscription program. Create engaging and shareable content that shows the unique value proposition of your subscription. Use platforms like Instagram, Twitter, and Facebook to not only showcase the benefits but also to create a sense of community around your subscription brand.
Don’t Have a Subscription Program Yet?
2. Limited-Time Promotions and Discounts
Leverage urgency marketing and create a sense of urgency and excitement through your subscription marketing strategy.
Carefully create limited-time promotions and discounts. Introduce exclusive deals for new subscribers and provide exciting discounts for extended subscription commitments, you can also create a compelling incentive for potential subscribers to take the first step.
Promote these time-sensitive offers through various channels such as email newsletters and strategically timed social media posts that can amplify their impact, resulting in a swift and enthusiastic response from your audience.
3. Clear and Concise Communication
The digital marketing landscape is cluttered with marketing campaigns and In this cluttered landscape of marketing messages, the importance of clear and concise communication cannot be ignored.
Show the value proposition of your subscription program with simplicity and clarity. Avoid overwhelming potential subscribers with unnecessary complexity; instead, use language and visuals that are loved by your target audience.
By presenting a straightforward subscription message that highlights the benefits and advantages of subscribing, you can eliminate the entry barriers and influence potential subscribers to make quick and informed decisions.
4. Start a Loyalty Program
Keeping your customers satisfied is a crucial thing in a subscription program. A great way to do it is to set up a loyalty program. A loyalty program that rewards the customers for their continued relationship with the company. Treating these customers the right way returns to growing your business.
A customer loyalty program is a connection between a brand and a customer. When the company offers exclusive products, offers, discount coupons, promotions, or pricing; and in return, the customer agrees to “go consistent” with your brand through repeat purchases or engagement.
Customer loyalty is the outcome of a confident customer experience, consumer satisfaction, and the value of the product the customer receives when he transacts.
Create Your Loyalty Program
5. Trial Periods With No String Attached
Offer risk-free trial periods that allow potential subscribers to experience the full benefits of your subscription program without any strings attached. Make sure that the trial experience is smooth and requires minimal effort from the user to get started.
This no-strings-attached trial serves as a hands-on introduction, enabling potential subscribers to check the fit between their needs and your subscription offering before making a final decision.
The transparency and accessibility of this approach build trust and make it easier for individuals to explore the benefits of your subscription program.
6. Know Why Your Brand is Better
You should know what makes your brand stand out and better than others. Take a good look at your brand and understand what makes it good. You can use this information to market your brand in the best way possible.
For example, if your product is the cheapest in the market let everyone know that it is the cheapest, if it provides services better than other brands then let people know. People will not take action and will be excited until they know what they are getting.
Moreover, You can send emails, write blogs, publish this on your website, and promote and make announcements on social media platforms to gather the attention of readers.
In simple terms, Know your value and use it.
7. Interactive and Educational Content
Go beyond conventional advertising by creating content that not only promotes your product or service but also educates and entertains your audience.
Develop tutorials, guides, or interactive content that shows the practical benefits of your subscription program. Provide valuable insights and practical demos of your offering, this will help you not only attract potential subscribers through informative content but also will enhance their overall user experience.
This education approach puts your subscription program above other brands that are offering subscription-based services and shows your unique approach.
8. Quick and Smooth Onboarding
A smooth onboarding experience is the linchpin of a successful subscription program. Make the sign-up process quick and easy, minimizing the number of steps required and providing clear guidance at each stage.
Clearly communicate what subscribers can expect and how they can maximize the benefits of their subscription.
A frictionless onboarding experience not only rescues the risk of potential subscribers abandoning the process but also sets the momentum for a positive and hassle-free journey through subscription tenure.
9. Referral Program
Creating a Referral Program for your subscription can be a great subscription marketing strategy. You can transform your existing subscriber base into active advocates by running a user-friendly referral program.
Simplify your referral process and make it easy for your subscribers to share your subscription program with their friends. Create a simple and straightforward mechanism that rewards both the referrer and the new subscriber with benefits such as discounts, exclusive content, or even free subscription periods.
This is a practical approach that not only taps into the power of word-of-mouth marketing but also increases the feeling of community among your subscriber base.
Subscription Business Model Examples
1. OTT Platforms
OTT and Streaming platforms like Amazon, Netflix, and Hulu are the biggest examples of subscription models. People pay on a monthly or even yearly basis to enjoy their favorite shows and other services.
Source: medium.com
Amazon extended its subscription services by offering perks such as one-day free shipping, exclusive discounts, and access to Amazon services like Amazon Photo and Prime Reading. No matter how often people use the included services, they’ll always pay the same amount.
2. BarkBox
BarkBox is a subscription-based service that delivers a monthly box of dog treats, toys, and accessories to pet owners.
This is a great example of a “subscribe and save” model, where customers sign up for a recurring monthly delivery of pet products at a discounted price.
Customers have the convenience of having pet supplies delivered regularly to their doorsteps, combined with cost savings due to additional discounts, which has made this model popular among pet owners and has contributed to Barkbox’s success.
3. Healthy Surprise
Healthy Surprise delivers boxes of healthy and delicious snacks with a focus on ingredients, not calories. it’s best for those people who are looking for ways to eat healthy meals. They can easily subscribe to healthy meal services and order healthy snacks that are gluten-free, vegan, and soy-free.
Unlike any other product food is one the best items to sell as a subscription service due to two reason one that people eats all the time and occasionally need to reorder, and second that it’s easier to prepare healthy meal, it’s hard to find places to buy healthy snacks.
Healthy Surprise tapped into this point and created a successful recurring revenue business.
4. BirchBox
Birchbox offers unique beauty products that people have never tried before on a monthly subscription basis.
The company inspires people to try something new. Birchbox leverages the subscription model in three ways. Discovery surprise and personal curation
Customers are happy because they’ll receive a new thing in the box every month. This also adds an element of surprise which has contributed a lot in their subscription growth
5. Trunk Club
Trunk Club has a unique approach to the fashion industry. They offer fashion advice for men and a clothing selection that is delivered straight to their doors.
Guys find it difficult to find the perfect clothes which is why Trunk Club sends their clothes to try on and people keep what they like. They send back the rest and only get charged for what they keep.
They first started as a one-to-one fashion advice service and later moved to a subscription model.
Conclusion
And with that, we conclude our exploration of subscription marketing. In this blog, we’ve talked about the subscription model and its booming growth which is set to be $1 trillion by 2025.
Keep in mind that building a successful subscription service requires careful planning and execution, as well deep understanding of the genre and audience you are targeting.
We’ve highlighted some of the practical strategies for subscription marketing you can use to grow your subscription program. By following these marketing strategies, such as offering free trials, creating a loyalty program, special promotions, etc. you can increase the effectiveness of your marketing campaign and drive revenue and growth for your business.
Moreover, If you don’t have a subscription program yet create one with the help of the Subscription for WooCommerce plugin by WP Swings
If you have any questions or feedback, feel free to reach us in the comment section below.
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About the Author: Mohd Talib
