For a monthly cost of USD 10, beauty lovers can receive a customised box of makeup and skincare samples. In addition, subscription boxes now include razors, coffee, wine, and even t-shirts, among the products and services available.
Adding additional revenue streams can help your subscription business grow, whether it’s in the midst of a crisis or not.
You’ll go through nine potential new revenue sources that subscription business owners may use on their Shopify store to enhance revenue and strengthen their subscription model business.
1. Make Yourself Stand Out
With so much competition in the subscription business field, you’ll need to conduct more research to guarantee that your company provides something unique that clients can’t get anywhere else. Customers will want to order a product or service repeatedly, which is a particular issue for subscription businesses.
This severely reduces your options by eliminating large-ticket items and one-time purchases. Because subscriptions are regular transactions, you’ll need to work extra hard to persuade clients that your product is one-of-a-kind and valuable enough to warrant repeated purchases.
2. Flexibility wins every time.
Ensure that whatever product or service you’re selling, from toiletries to apparel to software, your customers have the best options for determining what they require. You must be able to adapt to your client’s needs quickly.
Make sure the subscription level isn’t set in stone to the point that clients can’t adjust if their needs change. You’ll have a higher chance of getting consumers to sign up for your products or services if your membership terms are more flexible. You can also provide multiple subscription tiers to appeal to different types of customers.
3. Ensure providing mental well-being
Some clients are hesitant to use subscription services because they are concerned about being locked into a long-term agreement. Many people are also worried about cancelling the service since they may have had a poor experience with a firm that made it tough to balance in the past.
To ease your customers’ worries, provide them with a guarantee. It may be as basic as promising a money-back guarantee if they are dissatisfied with their products or services, or it could be as simple as saying that terminating the service is straightforward and painless.
Customers should feel at ease signing a contract since they know they’ll get good items and won’t be locked into anything they’re not happy with.
4. Take Care of Your Subscribers
It would help to give your subscribers the impression that their subscription is valuable and create a sense of community. For example, consider offering your subscribers access to exclusive sales or discounts so they feel like they’re receiving their money’s worth.
Consider hiring a professional or even a celebrity to curate the products or services available to subscribers.
For example, consider having a well-known builder speak about the building material collection that will be available for a specific period if your company offers building materials. These types of activities will help you keep subscribers and expand your consumer base through word of mouth.
5. Stay updated on your brand.
You need to know who is buying your services and who isn’t to create an efficient business plan. So please do everything you can to collect sales information; you should know your subscribers’ demographics, their degree of interest, and the specific types of subscriptions they are interested in.
You should also be aware of the reasons why consumers discontinue memberships. This data will assist you in determining whether your services are satisfactory. This will also tell you whether or not there is a market for your new items or services.
6. Assist Subscribers in Making Use of Your Products
Helping consumers better understand how to utilise your products is one of the most effective methods to raise their demand. This will excite people’s interest in the products and the company. This is done because subscribers are interested in learning more about what you have to offer.
For example, if your monthly membership service includes a facial pack, consider introducing a demo or video illustrating how to apply it to the face. People will be more interested in keeping their membership if they understand how to use your items.
7. Add-ons might help you expand your services
Providing attractive add-ons can provide an income stream that existing consumers are willing to buy into, similar to upselling. In addition, subscribers can use add-ons to pick and choose certain features they’d like to add to their product or service rather than upgrading to a new membership tier.
Digital editions or exclusive insider access to photo archives may be available as add-ons to a print magazine or newspaper. In addition, add-ons such as kitchen supplies or cookbooks may be included with a baked goods subscription box.
As a result, add-ons are as distinct as the businesses that create them. Add-ons and upselling work together to provide a new sort of monthly recurring revenue known as expansion MRR. These revenue sources have the potential to not only strengthen your business but also mitigate churn-related revenue leaks. It’s a highly effective strategy!
8. Customer Lifecycle Management has been improved
Gone are the days when your sales staff had to manually check where a prospective or existing customer was in the sales funnel.
You can have complete control over your whole customer and prospect base with subscription management. It means you’ll be able to figure out where each customer is in their lifecycle and provide a better customer experience as a result.
You can cross-sell and upsell products to existing clients if you can examine the customer lifecycle using subscription management. As a result, your revenue will rise.
9. Identify any gaps in your product or service.
Understanding what holes your organisation may not be filling requires subscription management. Essentially, your subscription service can create a “development plan” of your B2C clients’ transactions.
As a result, you’ll be able to identify where customers get stuck in the buying process before returning full circle. This means that a product or service that sits at the end of your customer’s “buying process” may not be seen by them.
You can create a plan for your products based on consumption data using your subscription service. You can also make a plan based on your service package and the financial performance of each step of the subscription cycle.
Subscription businesses are one of the trendiest types of businesses, and many businesses have had great success with them. That isn’t to say it isn’t fraught with difficulties. Within this industry, competition is fierce. It’s critical to conduct research and ensure that you provide a service that adds value to your users’ lives.
Some businesses can make do with one-time customers. Subscription businesses, on the other hand, rely entirely on repeat orders from clients.
Starting a subscription business, despite its hurdles, may be quite lucrative. You could be on your way to a multimillion-dollar business if you know what you’re doing and stay focused on the consumer.