If you have any doubt as to just how efficient and effective a subscription-based model can be for growing a business, check out just how many companies have experienced major growth with this type of business model. While there are several well-founded reasons to offer subscriptions when starting out and over time, here are three of the key reasons why, as an entrepreneur, you should use subscriptions to grow your business.
1. Value for Both the Customer and the Business
As an example, take a look at the business model of one highly successful e-juice company that offers top-of-the-line, trendy e-juice products. They offer an Auster e-juice subscription, which is a collection of subscription boxes that cost less than buying each juice separately.
Because of customer-perceived value, they sell more, making the subscription-based model a value-added model for the company. The bottom line in sales is value, so the surest way to increase sales is to offer greater value for less money.
2. Unbeatable Way to Build a Leads List
When customers subscribe to email lists, for example, you have a ready-made lead list that enables you to connect and reconnect with subscribers, whether they bought or not the first time around. Ask them to subscribe to your newsletter so that you can offer subscription packages at a promotional price.
Give them something of importance in each issue. It could be ‘how to’ tips or articles about the history of your company and/or its products. An informative newsletter is a must if you are seeking to keep them from unsubscribing in the hopes that one package or another will strike their fancy somewhere down the line.
3. One of the Best Ways to Build Brand Recognition
Finally, brand recognition is best accomplished by keeping your name in front of the general public. The mere fact that subscribers will be receiving regular emails from your company enables you to keep them thinking of your company in relation to what you have to sell. Always make sure your company’s name is in the subject line because they may not read that newsletter the first, second, or even the third time around.
Even so, eventually something will ignite a spark of recognition and they will open your email to see what all the ‘hype’ is about. It is suggested that your subject line be identifiable as well as actionable to get them to open the mail. Your brand is identifiable so include something engaging in the subject line that becomes a call to action, a call to click and read.
What You Can Conclude About Subscription-Based Business Models
The subscription-based business model is just now coming into its own. Many large companies achieved their current level of success by offering packages not available to anyone but subscribers/followers. It is human nature to want something which few others have access to and this is the way you help your audience feel ‘special.’
Give them what non-subscribers are not privy to and watch how fast your bottom line rises. It’s amazing what subscription promos can do.