Now more than ever, businesses are turning to subscription-based models to offer unique and convenient experiences for their customers. From 2013 to 2018 alone, the subscription e-commerce market grew by more than 100%, and it shows no signs of slowing down anytime soon. Beauty products, healthy meals, pet supplies, clothing, fitness classes, workshops, seminars, television shows, movies; the types of subscriptions offered today are increasingly convenient and virtually endless.
With such a competitive market, though, how do you ensure your subscription-based business will stand out from the rest? Here, Flexbooker is sharing five ways to build and maintain a successful subscription-based business.
1. Offer subscription customization
If customers buy into your products or services each month, they want to feel confident they’re getting their money’s worth. Enhance their experience by letting them personalize aspects of their subscription. Here are a few simple ways to offer customization:
- Provide an introductory survey for customers to customize their preferences
- If your subscription is product-based, let customers choose the items they’ll receive
- Offer different subscription levels
- Make it easy for customers to change, skip, or cancel their subscription
2. Create referral incentives
One of the main reasons people sign up for subscriptions is because someone sends them a referral. Building a referral system is a great way to increase customer retention while simultaneously acquiring new ones. There are a lot of referral incentives you can offer, like:
- Discounts for existing customers who refer your business
- Sign-up discounts for new customers
- A point or reward system for referrals
- Unique promo codes for current customers or influencers to share with followers
With the right approach, a referral system can be a win-win for current and future customers — and an even bigger win for you.
3. Cultivate customer loyalty
As the competition continues to increase amongst subscription-based businesses, customer retention is more crucial than ever. After all, loyal customers spend 67% more than new ones, and 59% of them will refer their family and friends to a business or brand they love. A significant part of loyalty comes from positive customer experiences, which you can enhance by:
- Sending personalized emails and texts, including automated payment and shipment reminders
- Offering initial sign-up discounts
- Promoting subscriber-only incentives, like free shipping, birthday gifts or discounts, or a rewards program
- Providing higher cost savings for longer-term subscriptions
4. Gather insight and feedback
Because your business is customer-driven, you should consistently gather insights and feedback directly from them. Send occasional surveys to ask about your products or services, website, email and text communication, and anything else that could enhance or hinder their customer experience. You can even offer a small discount or bonus for each survey completed.
While you should always ensure you receive valuable feedback from your current customers, don’t forget about previous ones, too. Send out exit surveys to those who unsubscribe, or provide a set of questions during the process of unsubscribing to learn why they no longer need or want your services. Use the information to your advantage by adjusting to the needs and wants of your customers.
5. Use Flexbooker for easy scheduling and payments
If your subscription includes any appointment scheduling, use a tool that makes it simple and convenient. With Flexbooker, you can automate and streamline the entire scheduling and payment process, and, as a result, enhance your customers’ online experience. Schedule a recurring payment, and even set up membership plans inside Flexbooker to manage your subscriptions. You can even send text and email reminders, let customers modify or cancel their bookings in real-time, and keep track of client metrics.