How your store can profit by memberships

A subscription strategy is applicable for 90% of e-commerce companies. Subscriptions can apply to physical items, virtual products, delivery (through Premium delivery), or services. Offering customers subscriptions or product boxes will help to expand your monthly earnings and build loyalty. Let’s take a look at how your store can benefit from offering subscriptions, no matter how big or small they are, and some tips to keep in mind if you choose to implement them.

Subscriptions create a repeating income stream

A challenge that all store owners face is not just finding a way to make money, but finding a way to regularly make money. In the world of e-commerce, sales can spike one day and virtually disappear the next, all seemingly without any rhyme or reason. A subscription-based sales model introduces regularity into this world of chaos and unpredictability. Store owners will always know how many subscriptions they have running at any given time, how many subscribers belong to each tier, and when the next billing cycle will occur. With subscriptions, a stream of reliable, recurring revenue is introduced that store owners can count on from month to month or year to year.

Subscriptions can take many forms

A subscription doesn’t have to be limited to a monthly delivery of a physical product. Nor does it need to be restricted to a license key for a piece of software. Subscription-based products can take many forms, and you can deliver them in many different ways. With a little thought and experimentation, you’re certain to find a setup that’s suitable for your specific business model.

Multiple tiers allow for maximum flexibility

Many subscription-based services have multiple “tiers” — that is, different levels of pricing, delivery schedules, and sometimes perks — that allow customers to pick and choose which options fit best into their lifestyles and budgets. These tiers give customers more flexibility, which can often increase your conversion rates. The more flexibility you can offer your customers, the better. Multiple tiers definitely require more work to set up, manage, and ship. However, you’ll see bigger gains in conversion rate and long-term profits, and your customers will thank you for thinking of their unique needs.

Great experiences will create customer delight, loyalty, and buzz

Subscription-based packages and plans give you an incredible opportunity to delight and surprise your customers and incite loyalty in ways that one-off shipments and purchases simply can’t. Subscribers are already giving you their full attention on an ongoing basis — it’s up to you to take advantage of it. Here are just a few ideas to create those desired emotional ties with your subscriptions:

• Offer subscriber-only perks. Whether it’s access to a special area of your website, subscriber-only products or downloads, or a small discount on every item, these perks can both draw in new subscribers and keep your existing ones happy with you.
• Sneak in special bonuses. If your subscription model relies on shipping out monthly packages, try sneaking in an extra item every now and then just to say “thanks.” It doesn’t have to be big — a sticker or T-shirt will do. But a little surprise like this can go a long, long way.
• Reward repeat subscribers with discounts. If someone renews their subscription, consider giving them a discount for coming back. You can even give them a discount for renewing early or renewing multiple times. It shows you care, and that you recognize the value of their ongoing support.

Now that you know all the benefits of subscriptions, are you thinking of offering one (or more) in your store? Or do you already have a subscription-based business you’d like to show off in the comments? Let us know what you’re thinking; we’d love to hear from you!