In the ever-evolving eCommerce market of 2023, subscriptions are becoming a popular and lucrative business model. The market expands at a whopping rate of over 100% per year. It offers merchants a consistent revenue source and guarantees customer loyalty while lowering market investments. Most businesses use it as a tool to boost sales or smooth functioning of services. It serves as a core business for some and an add-on for others.
Exploring Subscriptions Business Model
Subscription models offer customers an option to avail a product or service under a recurring plan. They will be privy to various benefits, deals, and discounts until they decide to cancel the subscription.
Subscription Model Types
Below are examples of some successful business model types.
- Most OTT streaming platforms like Netflix, Amazon Prime Video, Disney Hotstar, and Hulu function on the subscription model. They give an option for customers to subscribe on a monthly or yearly basis. The benefits depend on the type of subscription.
- The gaming industry makes use of the subscription model as well. A typical example is Electronic Arts.
- Some sites, like the beauty and lifestyle industries, offer Mystery Boxes to customers who subscribe. These boxes reach the customers at stipulated intervals, filled with different products from the genre, adding mystery and excitement to the mix.
- The online education industries offer modules based on subscriptions to make courses affordable for everyone. Customers can avoid the initial lumpsum investment and pay the entire amount over a period of several months.
- Popular eCommerce platform Amazon provides subscriptions in the form of Amazon Prime with multiple added benefits like one-day delivery and free shipping to subscribers. Clients can also choose to subscribe to specific products for additional discounts.
Subscriptions Business With WooCommerce
WooCommerce is the best platform to start a subscription business. The robust WordPress-based platform lets users initiate subscriptions and recurring payments with a few clicks without prior programming experience. It will be prudent to start a subscription business with the help of a seasoned team providing WooCommerce development services. This blog explores ten popular best practices to help you run a successful subscription business using WooCommerce.
Some Smart Pointers to Successful Subscription Business
Here, we have assimilated some perceptive ways you can run an established subscription business.
Choose the Right WooCommerce Subscription Plugin
The first step in starting a subscription business begins with picking the correct WooCommerce subscription plugin. WooCommerce offers various options like WooCommerce Subscriptions, Subscriptio, and YITH WooCommerce Subscription, each with unique features. Ensure your chosen plugin aligns with your specific business needs, offers easy management, and has powerful customer support.
Diversify Product Offerings
To attract a wider audience, you need to change up the list of product offerings. You should not stop at selling just one product or service. Consider offering different subscription plans with various pricing tiers, product bundles, or exclusive perks. This diversity can cater to a wider customer following and improve your revenue potential.
Streamline the Onboarding Process
Create simpler methods for customers to subscribe to your services. Ascertain that the subscription sign-up process is straightforward, user-friendly, and doesn’t involve unnecessary steps or complications. A smooth onboarding experience can lead to improved conversion rates and lesser churn.
Personalize Subscription Options
Personalization is a key ingredient to retaining customers. Customize subscription plans to allow patrons to choose their preferred frequency, delivery schedule, or product selection. This level of flexibility ensures that your offerings align with individual preferences, increasing satisfaction and reducing cancellations.
Implement a Robust Customer Retention Strategy
Customer retention is the biggest factor in the subscription business. Provide loyalty programs, bundled discounts, and authoritative content to keep subscribers hooked to your site. Organized communication, customized deals, and outstanding customer service are all part of a successful retention strategy.
Invest in High-quality Content
Content is crucial to engage subscribers and keep them returning to your site. Whether it’s in the form of newsletters, blogs, videos, or exclusive member-only content, invest in creating valuable and relevant content that enhances the subscriber experience. It will help you cut through the noise of competition and establish long-term commitment with your buyers.
Monitor and Analyze Key Metrics
Track important metrics like churn rate, customer acquisition rates, and subscriber lifetime value. Analyzing these metrics will help you understand your subscription business’s efficacy. You can implement this information to refine your strategies and build data-driven decisions for growth.
Provide Flexible Billing Options
Customers can choose their preferred billing cycles – monthly, quarterly, or annually – based on their needs. This flexibility will help acquire customers from diverse budget preferences and encourage long-term commitment from subscribers. Additionally, consider offering multiple payment methods to accommodate various customer preferences. Most customers abandon paying if their preferred payment option is absent on a website.
Offer Robust Customer Support
Prompt and reliable customer support is a building factor in retaining subscribers. Since they are recurring customers, they need to feel at home in your web store. Address their queries and concerns promptly, and be ready to handle any issues that may arise with billing, product delivery, or any other vital aspect of the subscription service.
Optimize the Model for Mobile Devices
Given the prevalence of mobile shopping, it is imperative that you give your WooCommerce subscription business a mobile-friendly design. Every customer turns to a handheld device for research or actual purchases. A responsive design and easy navigation on mobile devices can significantly improve user experience and conversion rates.
WooCommerce is one of the most favorable platforms to run a successful subscription business. However, running a thriving subscription business with WooCommerce requires careful planning, constant monitoring, continuous optimization, and a customer-centric approach.
You can establish a strong foundation by choosing the right plugins, diversifying your offerings, streamlining onboarding, and focusing on personalization and customer retention.
Additionally, data analysis, flexible billing options, reliable customer support, and mobile optimization are vital for ensuring success. We are confident that by following these best practices, you will be well on your way to a thriving subscription business that delivers consistent revenue and loyal customers.