Subscription services are the future of e-commerce businesses. As matter-of-fact as that statement sounds, it’s less limiting when you think about how subscription service models can be implemented in nearly every industry. Company leaders should explore subscription service models if they want to keep up with the evolving needs of consumers and their growing list of values.
Utilizing subscription services to full effect can be intricate and time-consuming without proper market research and the completion of pre-production tasks that streamline the assembly and marketing of your subscription service. To implement a successful subscription service, you’ll be required to effectively manage customer relationships, ready your entire company for the transition to or addition of this service, and efficiently address the challenges associated with this unique business model.
Let’s discuss why subscription services are so popular amongst consumers. We’ll then take a look at some potential challenges you may face when switching to a subscription sales model as well as some trends to look forward to with subscription services.
Why Subscription Services are So Popular Amongst Consumers
Subscription services are increasing in popularity among consumers because their values have shifted to prioritizing convenience and price. This shift in values can be attributed to stay-at-home orders enforced all over the world due to the COVID-19 pandemic. Consumers were forced to shift their purchases to online platforms for convenience and protection against this highly contagious virus. They also had to buy essentials just as much as other products, forcing them to look more closely at prices as they now incur shipping & handling costs.
The promise of products being delivered consistently with the touch of a button provides consumers with peace of mind, convenience, and a personalized brand experience. They no longer have to worry about remembering to purchase products with recurring usage. They get to enjoy the convenience of getting necessities delivered right to their door, eliminating any need to navigate busy retail stores and become at risk for illness.
Many subscription services offer consumers an opportunity to save money on products they otherwise wouldn’t have in physical stores. These services are so popular among consumers because they promise content, a product, or service with a level of quality, brand loyalty incentives, and an overall experience unmatched by businesses without this option.
Challenges with Switching to a Subscription Sales Model
Although the perks of switching to a subscription model are often detailed with the heart of the consumer at the forefront, there is also value in discussing the B2B subscription sales models and their benefits to your company. According to AppDirect, “B2B subscription commerce covers all of the technology and business operations that power the sales of digital products for businesses on a recurring basis.”
Understanding that subscription sales models can span B2C and B2B businesses makes the challenges associated with switching to a subscription sales model that much more complicated. These challenges include:
- Disrupting what you already have in place.
- Quality assurance and meeting experience expectations.
- Conducting thorough research before implementation.
- Acquisition and retention.
Not properly addressing these challenges or simply acknowledging their existence in your transition will result in a negative impact on your company’s profit margin, customer loyalty, and ability to expand. Mistakes to avoid when offering subscription services include:
- Not being ready for subscription services company-wide.
- Disrupting existing channels without any notice to customers.
- Not analyzing the financial impact on your business.
- Not doing any research before implementing the subscription sales model.
- Not marketing the subscription service properly.
The Future of Subscription Services
With eCommerce evolving rapidly due to the pandemic, consumers have adapted by embracing subscriptions as an important part of functioning normally in their daily lives. From the media streaming services we all know and love to health and beauty products, all the way to business software services, consumers don’t plan to give up the flexibility and convenience that comes with subscription services any time soon.
Adopting a subscription sales model will not only help you maximize your profit but also satisfy the ever-growing needs of your current and potential customers. You also have a powerful opportunity to build brand awareness and get the value they’re constantly searching for in front of consumers. The future of subscription services in business will look like this:
- A subscription service rolling out for EVERYTHING and it uses running deeper than media-streaming services.
- Outsourcing appropriate tasks to keep up with efficiency, production standards, and consumer demand.
- Implementing unique inventory management strategies for these services.
- Crafting different subscription service models across various industries.
Implementing a subscription sales model into your business can result in a loyal customer base and successful integration into your product’s entire lifecycle. Subscription services are perfect for anything your customer uses and replaces over and over again. Convenience, price, and experience are a consumer’s best friend, hence why subscription services are being created for various needs.
Keeping up with future trends in subscription e-commerce, and strategizing with potential challenges and increasing popularity in mind will ensure a holistic approach to implementing a subscription sales model into your business.