Running an eCommerce website is not easy. It’s more like running on a hamster wheel. You struggle for sales, earn a few of them, celebrate your victory, and the cycle continues. It is a tiring job for anyone to keep themselves struggling for sales on a regular basis. If you are a business website owner who wants a steady and profitable income, then you need to have an eCommerce model based on subscription. According to the SEO Toronto Experts, it can revitalize your business in a significant manner. It is more like training your pet dog to fetch something you throw at it regularly, which is way more comfortable than a hamster wheel. In this article, you will learn about the subscription model and how it can help you revamp your business in an effective manner.
What is a Subscription-Based eCommerce Model?
Remember the magazines that your siblings used to get very excited about(Yeah, I’m talking about those automobile and comic magazines). That is what we call a subscription model. However, it is not limited to magazines anymore. You can think of fresh meal kits that are delivered to your doorstep, your monthly supply of beard oil, or the box of chocolates that are made according to your preferences. To get such subscriptions, you have to pay a recurring fee to get their services on a regular basis. This will ensure a predictable revenue stream for you, which is way more beneficial than the traditional way of conducting your eCommerce business.
Types of Subscription Model
Here is a list of commonly used subscription models that are used in eCommerce given below:
- Consumable/Replenishment Subscriptions
These subscriptions handle the regular delivery of items such as razor blades or pet food. These help the customers to avoid running out of these items when they need them the most.
- Curated Subscriptions
They offer a curated choice of products that are often themed or personalized. They offer customers a new way to discover new items on sale.
- Access Subscriptions
Various websites offer exclusive access to their content or platform with the help of access subscriptions. Streaming services and online courses also fall under this type of subscription.
- Fixed Subscriptions
Many manufacturers offer products with all the features included for a monthly or annual fee.
- Unlimited Subscriptions
It is a kind of subscription where you get unlimited access to various specific services and products. Gym membership falls under this category, which is really beneficial to keep you fit and healthy.
- Pay-as-you-go Subscription
It allows the customers to pay the fee according to their usage. It is often offered with tiered plans or price-based usage.
- Tiered Subscriptions
This kind of subscription offers different levels of access and benefits at various price levels. They cater to different needs of customers.
- Hybrid Subscription
It is a blend of different models that create a unique offering. For example, personalized TV packages.
- Freemium Models
It offers a basic tier of free services with the option to upgrade to a premium package to experience additional benefits.
- Membership Subscription
Various companies offer membership subscriptions that give exclusive access to various communities, events, discounts or perks to promote loyalty among members.
You need to keep the following factors in mind to select the right subscription model for your products:
- Products and services you offer.
- Target Audience.
- Business Goals
Various eCommerce services use these subscription models to capitalize on their revenue streams and build customer relationships for a long term.
Now, let’s discuss the benefits of the subscription model.
Advantages of Subscription-Based eCommerce Model
Here are some of the finest reasons why many people prefer the subscription model for their eCommerce ventures given below:
- Predictable and Consistent Revenue
As compared to the traditional eCommerce models, subscription models are known to provide a more stable and predictable income stream. It will help you know how much money you can earn each month. Sounds fun, isn’t it? Well, this model allows you to plan your inventory and productions, which can be a relief for many business owners. It also streamlines the management of your inventory, which further reduces the chances of overstacking or shortages.
- Customer Loyalty
Who doesn’t love it when customers continue to stick with your brand and buy your products and services? Well, with a subscription model, customers can feel valued, which will help you build strong relationships with them.
- Convenient for Everyone
Convenience is the biggest factor that has helped many businesses achieve success. Customers want their service providers to offer them the convenience. It saves their time and effort and increases the chances of customer loyalty to a significant level.
- Lower Cost of Customer Acquisition
It is a known fact that retaining old customers is quite cheaper than getting new ones. With the subscription model, you can keep the customers happy. It also lowers the need to change your marketing methods.
- Increased Chances of Positive Cash Flow
In this model, the payments are always received upfront, which increases the chances of maintaining a positive cash flow. It further relieves you from any financial pressures.
Read: Elevating Brands with Web Design and Marketing Expertise in Cardiff Digital Firm
How Can You Make Subscriptions More Attractive for Your Customers?
Let’s face it, running a business should not suck your soul away(however, it is like that somedays). You can get creative with your subscriptions and have some fun. You can follow the ideas given below to get your business in the right direction:
- Introducing Various Themes
Many online businesses offer coupons like a monthly movie subscription with popcorn, candy, and personalized movie choices.
- Offering Delightful Surprises
You can include bonus items or early access to new products in the subscription boxes. It will keep your customers guessing about the benefits they are going to earn.
- Involve Your Customers with Interesting Games
You can offer rewards to your customers with points, badges, or discounts and turn your online store into a playground for them.
Final Words
Subscription-based eCommerce models are changing the landscape of online business. It is helping various service providers to earn huge profits in the easiest manner and keep their customer base happy and satisfied. Furthermore, it offers an opportunity to make your business more vibrant and attractive for your customers and improve the customer loyalty factor, which is essential for any business. That’s how this model is helping them to ensure recurring revenue streams.
Author’s Bio:
Amir Waheed is the co-founder & CEO of SEO Toronto Experts. He intends to bring a massive transformation to eCommerce SEO Services. His team of talented IT professionals knows the secret of getting huge conversions.