There was a time when platforms such as Netflix or Amazon Prime would come to your mind on hearing the term “subscription based ecommerce model.” Well, not anymore. Today, people have subscribed for vast amount of online products & services that includes their grocery supply, clothing, cosmetics, medicines, etc. This clearly indicates that the subscription based online business models have certainly been a hit.
This surge in the adoption of subscription-based e-commerce has been clearly driven by the convenience it offers to the customers. They have no problem in spending money on something they need and something that they’ve become accustomed to.
On the business side, this subscription based approach can be advantageous in many ways for online businesses. But it is important to select an expert angularjs development company which can help you bringing your ideas into reality leveraging the latest technologies
One of the most obvious yet one of the most important benefit of having a subscription based business is consistent cash flow. Every business – whether online or offline – want to have consistent flow of cash, and they’re on the constant lookout to find out ways for it.
For online businesses, subscription approach can be a key tool in creating a loyal customer base and generating consistent revenue. This approach increases overall stability of your business and you can have a better cash flow management as you’re aware of the fixed revenue.
If you’re into e-commerce space, you know how stressful inventory management sometimes can be. And if not planned and/or implemented properly, inventory management can hurt your business in the short as well as in the long term. But because you have the idea about the orders from customers who have subscribed, it can greatly relieve you from all the hiccups and bumps coming your way
Every business wants to build a loyal customer base. Do you know why? Because it’s lot easier to retain an existing customer than finding a new one. In form of subscription model, online business has a golden opportunity to retain their customers. Not only that, it eases the path of customer relationship management as you know the current status of all the customers who’ve subscribed.
We are the result of the decisions that we take, and so are our businesses. Whether it’s deciding the annual budget, hiring people, deciding spendings, expansion of business or hundreds of such decisions, every business has to take these decisions quite frequently.
Many of the times we don’t take right decisions as we don’t have the right data on our hands. With subscription based approach, we have many forms of data such as cash flow, types of customers, product popularity, etc. Such data helps you forecast things better take better decisions.
What’s the first thing most investors ask when presented with an investment opportunity in a company? They ask for the valuation of the company, right? When you have a consistent cash flow in your business, you can proudly tell them about your company’s earning capacity and that adds a significant value to your company. This not only increases your chances of getting investment, but it also helps you establish reputation as a solid company.
There’s only one kind of customer subscribes to your business, and that’s the happy type of customer. It’s great to have happy customers but this puts two responsibilities on your shoulders. The first is to make them stay happy and the second is to make them even happier.
Subscription-based model gives you the opportunity to interact with your customers on a regular basis and improve the relationship. Hiring expert ecommerce web developers would help you serve the purpose of offering the best user experience
You can engage with them by taking their feedback, keeping them updated about your offerings, having a conversation with them about a cause, surprising them with some kind of a gift, etc. There are tons of ways to improve customer relationship, if you’re truly willing to.
As you know, there are many stages before and after one becomes your customer. And as it’s the case with all businesses, you must be fighting on all fronts. But if you have a base of customers that have already subscribed to your product or services, you don’t need to convince them anymore. Instead you could focus on nurturing relationship with those customers and focus on acquiring new customers. This will help your business grow on a consistent basis and will help immensely in the long run.
The main reason why customers opt for subscriptions is because they want to get rid of all the hassles involved in ordering, coordination and delivery. With subscription based model, they don’t have to go through it. On your side, this will ease the burdens on your customer support department as there’ll be lesser complaints.
As we saw earlier, only happy customers will the subscribers of your business. You could use this as an opportunity to pitch your premium plans/services to them as they’re already satisfied with your business. You could offer these services in form of trials and the ones who like them can purchase it.
We humans are funny animals. Sometime, we take all the time in the world to form a habit and sometimes we form it without being aware of it. However, one common thing in both types of habits is that they’re a lot harder to break. So if you could convince ten thousand customers to subscribe, you can stay relaxed as most of them will stay your customers for a long time, simply because they’re habituated to it.
Subscriber-based businesses and their benefits sound great on paper, and they are. However, building a business on such a model is a difficult task at first as you’re asking your customers to trust you with their money and financial information.
This can only happen by winning their trust. We once knew a company that wanted to enable subscriptions on their website and wanted to hire Magento 2 developer, but that didn’t work out well as they hadn’t won the trust of their customers.
Therefore, rather than focusing on subscription model, first you should think about giving the best user experience. Once you’re confident enough, you could hire an ecommerce web design services provider to enable your site for subscription based model.