Subscription DNA Blog | Page 6 of 26 | Cloud Billing & Management Software

How to Create a Unique Subscription Service in a Crowded Market

Subscription services have exploded in popularity in recent years. Customers choose subscription services to sample a variety of products or to receive items they regularly use automatically. The field has become so crowded that subscription companies need to identify ways to stand out from the competition. The key is to find a unique niche and to fill a gap that exists.

How to Find Your Niche

Start out with a general idea about the type of products you want to sell. It’s best to focus on an area where you have prior knowledge through education, professional experience, or a hobby.

As an insider, you will understand why people are so passionate about the topic. You may have had personal experiences that others can relate to, or you may have tried and been disappointed by other products, just as your potential customers have been.

The internet can be extremely helpful when it comes to identifying a niche for your business. Blogs and online forums give people of all backgrounds an opportunity to ask questions, share advice, and vent about their frustrations. Reading comments can help you learn what is on people’s minds and identify problems that your business can solve.

Identify Ways to Set Your Company Apart

Research existing subscription services that sell products in the same general category you are thinking about selling. Consider the variety and quality of the products offered and compare those to the cost. Are customers getting their money’s worth? Are they receiving unique or innovative products that they would be unable to find in local stores or online?

If most subscription services in your target area appeal to a wide audience, think about specific groups who may feel left out. For example, if you want to sell meal kits, you might decide to focus on recipes for people who have a limited amount of time, who are vegetarians or vegans, or who have allergies. Perhaps your prospective customers would like to broaden their horizons with meals from other cultures or find healthier ways to make classic favorites.

Create a Unique Subscription Service

Starting a subscription service isn’t necessarily difficult, but standing out in a crowded field can be challenging. Understanding what makes your potential customers tick and recognizing the limitations of other businesses can help you differentiate your subscription service from competitors’.

Signing up for your subscription service and making regular automatic payments should be as straightforward as possible. Subscription DNA can make it easy for customers to enroll and pay for your service so they can focus on enjoying the products they receive. Contact us today to learn more about our subscription membership management services.

Younger Americans Are the Perfect Demographic for Subscriptions

It’s not a secret that young Americans of the millennial generation are in different financial straits than their parents. Many of them have thousands of dollars of student loan payments – which necessitates hefty monthly bills – so they’re not making large purchases such as homes and vehicles at the same rate that older generations did. Instead, they’re looking for goods and services they can pay for monthly. For this reason, young people are driving what’s becoming known as the subscription economy.

Why Subscriptions?

Since younger people don’t have the lump sums for large payments, they prefer to buy on a month-to-month basis. In fact, 92 percent have active subscription services, according to a recent survey conducted by Vantiv and Socratic Technologies. According to recent data from the Consumer Technology Association, music and video streaming services alone are projected to generate close to $32.3 billion in revenue in 2020. Add in everything else younger Americans are buying by subscription such as clothing, cosmetics, wine and beer, shaving supplies, musical instruments, and even cars, and the potential of subscription selling becomes enormous.

For these younger Americans, the subscription economy offers an option that’s simple, predictable, recurring and tailored for them. It’s probable that as this generation ages and becomes more financially secure, their subscription habits will likely stay with them. For this reason, it makes sense for companies to marketing subscription services towards the millennial generation for the long term.

How Do Subscriptions Benefit Your Business?

One of the biggest benefits of a subscription model is more regular and predictable cash flow. For smaller businesses or new businesses, the subscription model provides an opportunity to compete with larger or better-established companies. With an understanding that young American consumers are the highest adopter of subscription services, companies should be placing marketing dollars towards that demographic today to ultimately increase company value. It’s vital, however, to have an effective infrastructure for subscription management in place.

Look for a Dedicated Subscription Management Platform

Subscription DNA’s subscription management software is ideal for small businesses, and features group enrollment tools and group communications, email marketing automation, cloud billing automation and payments, intuitive membership management, CRM and premium content and paywall management. Your customers can even log in and manage their own accounts right from your Web site.

Even small businesses just beginning to use the subscription model can quickly and easily build the type of community that keeps subscription customers engaged, interested and loyal.

Contact Subscription DNA to learn how you can market to, communicate with and support younger consumers.

Monthly Subscription Boxes for Food & Drink Are Trending

There’s no denying what profound effect subscription boxes have had on consumption trends today. More people admit to choosing a subscription service that delivers products they use or want to try each month, versus going out and shopping brick and mortar stores for that purchase.

With the rise of giant online commerce platforms like Amazon and the ease of using mobile apps, we’re also continuing to new versions of subscription services be introduced constantly.

A report from McKinsey and Company found that subscription boxes experienced “explosive growth” from 2011 to 2016 with a 100 percent annual growth rate.

As this trend continues to grow, one of the major types of subscriptions people are turning to is the food and beverage category. Not only because it saves time and is convenient, but other unique options, like fully measured ingredients with recipes to create or foods that fit into a specific way of eating, can all be delivered directly to their door. There is also the opportunity to get certain regional or artisanal food or drink not available in a local area which is a major plus for some.

Think craft beers, artisanal cheeses, and cured meats. The list is endless.

The other great thing people find with subscription boxes for food and drink vs. just going online to shop for specific items when they need them is that they can get items that have been curated by experts who are choosing items they’ll likely enjoy without ever having known about them.

This “treat” element that is provided to consumers allowing the trend to continue moving forward with strong momentum.

For the companies offering the subscription services, this is also a great time to focus on building their brand and the experiences consumers have with their offerings as they’re seeking out new subscriptions to sign up for.

In addition to creating a unique value prospect for potential customers, it’s critical to have a subscription management service that works. One that involves minimal friction for the end-user and one that ensures monthly funds are deposited for the services without hiccups.

If you’re looking for a way to manage all your subscription service memberships, look no more. At Subscription DNA we have all of the management and robust reporting tools you need to manage and support your customer through their entire lifecycle.

Contact us to learn more today!

Do Small Businesses Need Subscription Management?

While subscription management may seem like the kind of things only large companies such as Netflix use, the truth is that even small companies are good candidates for the subscription business model. The advantages of subscriptions are offering your customers the flexibility to subscribe rather than purchase outright (and a regular amount to make budgeting easier), and for your business, it’s a good, steady stream of revenue.

Your business is a good candidate for the subscription model if:

You sell products or services that customers buy on a repeat basis, such as maintenance or cleaning services, or products that require regular refill supplies.
You sell services that people need to access on an ongoing basis. A good example is a web-based software that needs regular maintenance and updates.
You guarantee or warranty your products or services. The subscription billing model is ideal for product protection or replacement plans.
You have a lot of accounts receivable activity. A subscription management platform is a great way to manage your regular billing process.

The subscription model has the advantage of encouraging one-time customers to become long-term customers. These repeat customers your small business gains via the subscription model can help boost your customer retention rate and your revenue.

Putting the infrastructure in place to offer your customers a subscription model is easier than you might think. You can either do it in-house or adopt an easy-to-use, Web-based subscription management platform such as Subscription DNA that will allow you to charge, refund and manage subscribers, including email marketing and communications.

Even small businesses just beginning to use the subscription model can quickly and easily build the type of community that keeps subscription customers engaged, interested and – most importantly – loyal. Contact us to learn how you can not only attract more subscription customers but keep them loyal into the future.

Subscription Pricing Strategies to Consider in 2019

Subscription services have become popular because they allow customers to receive products they like on a regular basis and enable businesses to maintain a steady stream of revenue. If companies consistently provide products that customers want and value, subscribers will remain loyal and continue to pay for products. This, in turn, will lead to higher revenue for the company than it would earn if customers simply chose to make occasional purchases.

If you plan to launch a subscription service in 2019, setting prices appropriately will be critical. You will need to think about your immediate and long-term goals and create a strategy to meet both and to set your company on the path toward growth and sustainability.

How to Set Prices and Attract Customers

You will need to consider the needs and values of your customers. They will most likely not be a monolithic group, but rather will fall into several categories. Some customers will want a wide variety of products, while others will prefer to keep things simple. To be successful, your company will have to identify the specific needs of various groups and offer several plans or levels of membership at various price points so there will be something to appeal to everyone.

In many cases, particularly with relatively new companies, potential customers don’t know much about business and are unsure about the quality of their products and customer service. One way to help people gather more information and form a favorable opinion is to allow them to try out a company’s basic services for free and offer them additional options for a price. A freemium model encourages people to take a chance on a company and often leads to satisfied customers who purchase additional products or services and maintain their memberships for years.

Subscription companies become more successful and profitable when they grow and adapt to the needs and suggestions of their customers. If you decide to offer new products because your customers request them or because you think they would appreciate them, you will have to adjust your pricing model accordingly. You might decide to include a new product in all subscriptions and raise prices across the board, or you could offer an extra product as an add-on or create a new package.

Make Recurring Payment Processing Easy

Once you have set the pricing guidelines for your subscription service, you will need to make sure that it is easy for customers to sign up and those recurring payments will be processed efficiently and correctly. Subscription DNA makes that simple so you can focus on running your business and meeting the needs of your customers.

Contact us today to learn more!