A lot of business models that were designed as “pay-once and use-forever” are now switching to subscription-based offerings. They are finding that there are numerous advantages to billing customers on a recurring basis.
A recurring payment model will lead your business to considerable and sustained growth. A monthly subscription service could also mean higher revenues and CLVs (customer lifetime values.)
Here are a few of the advantages your business could experience by offering a monthly subscription service.
Your customers get the benefit of easily repurchasing a product or service that they know they will need in the future.You get the benefit of customers returning to your business on a regular basis – and you have to work a lot less to re-engage them. For the right product, brand, and industry, the subscription model can be a very effective and lucrative approach to running your business.
If your business operates on a pay-per-visit model, you have to constantly attract and convert customers to earn revenue. Getting attention in a crowded, loud marketplace can be very expensive. A bad month can set you back and it will be harder to recover the investment you’ve made towards customer acquisition.
The monthly subscription service model allows you to receive customer payments on a regular basis. Because you will know the amount they will be paying at the time of the initial sale, you can predict your revenue each month. This will enable you to order only the supplies or stock that you need without purchasing excess and spending more.
When a customer signs up with a monthly subscription service, they do not have to search your website each time they want to order a product or book a service. In most cases, their subscription will renew automatically, refilling the products they use continually or re-enabling regular appointments for services. It takes the hassle out of them having to remember these tasks themselves.
The monthly subscription service not only keeps your revenue consistent but also prevents your customers from window-shopping other brands when they need something.
When your business model is based on a monthly subscription service, you have continuous contact with your customer base. Through this contact, you can build trust which makes it easier to market complementary and additional services. Subscriptions empower you to make upsells organic and easy: customers who have a relationship with your business will be more receptive to the value of your services.
With a monthly subscription service, customers can rely on your business to deliver. With intangible products such as software, your customers will expect to have access as long as they continue to pay their monthly fees and you meet these expectations by giving them uninterrupted access. With tangible products, an expectation is set that they will receive products from you regularly.
Both the intangible and tangible service subscriptions will keep you interacting with customers regularly on autopilot, allowing you to build relationships and trust by delivering as expected month in and month out. This trust creates a positive feedback loop between your customers and your brand and will ensure that your customers remain loyal.
Customers like the idea of paying $20 a month versus $600 upfront to engage with a business. There are exceptions to this rule, but typically the more you charge, the fewer customers you will have that can make purchases.
With a monthly subscription service, there will be more potential customers who can purchase your products or services. They may pay larger amounts over time, but it will allow them immediate access to your products.
Once you develop a subscription model, don’t just stop there. Find ways to keep subscribers interested and satisfied so they will continue to use your products and services.
Upscribbr enables businesses to list their monthly subscription services on the Upscribbr app. Your business can easily create and advertise your customized monthly subscription service to local customers on Upscribbr. Start bringing in new customers with Upscribbr and see how we can help you sell your products or services and generate recurring revenue.