Text message Subscription based business models are generally based on selling a product or service on a recurring revenue basis. Instead of focusing on customer acquisition, they focus on customer retention, reducing customer churn rate.
Essentially, subscription business models create long-term relationships with their existing customers. Why? Because it's easier (and cheaper) to keep a customer than to find a new one.
That said, how can you ensure your subscription business model is successful? How can you build a system that keeps subscription consumers coming back, month after month? Here are a few tips:
Make it easy to sign up and cancel
Customers should be able to sign up for your service with just a few clicks. And if they decide they want to cancel, the process should be just as easy.
Know that no one wants to be locked in. Even if your online store or service is excellent, customers will still appreciate having the option to cancel. Give them that peace of mind, and they'll be more likely to stick around.
For example, your subscription website platform should make it easy for customers to sign up, update their payment information, and cancel their subscription if they need to. You can do that by providing clear links and instructions.
Imagine if Netflix made it difficult to cancel. How many customers would they lose? So, ensure that your customers can easily sign up and cancel without any hassle.
Offer a free trial
A free trial is a great way to get customers interested in your service. It allows them to try it out without commitment. And if they like what they see, they're more likely to become paying customers.
For example, many software companies offer free trials of their products. Once the free trial period is over, the customer can decide whether or not they want to subscribe. It's a great way to get customers interested in your service and ensure that they're getting value for their money.
Another example, you can offer free subscription boxes for a limited time. This way, customers can try out your subscription box and see if it's right for them. And if they like it, they're more likely to keep coming back for more, leading to repeat customers.
That said, it's important to make the free trial period clear. Customers should know how long the free trial lasts and what they'll be charged once it's over. This way, there are no surprises, and they can make an informed decision about whether or not to subscribe.
Finally, don't forget to follow up with customers after their free trial ends. Send them an email or give them a call to see how they're enjoying the service. This is a great way to get feedback and show that you care about your customers.
Subscription businesses should provide value
Your service should provide value for your customers. If it doesn't, they're not going to stick around. Figure out what your customers need and make sure your service delivers.
Value can be anything from convenience to entertainment to education. It doesn't necessarily have to be something that's essential. But it should be something that makes your customers' lives better in some way.
For example, Spotify provides value by giving users access to millions of songs and podcasts. They can listen to whatever they want, whenever they want. It's a great way to kill time and relax. And it's something that people are willing to pay for.
Another example is Netflix. They provide value by giving users access to a wide variety of TV shows and movies. They can watch whatever they want, whenever they want. And with their monthly subscription, they don't have to worry about commercials.
As you can see, there are many ways to provide value for your customers. It doesn't necessarily have to be something big. Just figure out what your customers need and make sure your service delivers.
Keep your subscription services simple
Don't try to upsell your customers or add too many features. Instead, keep things simple and focused on what they need. This way, your subscription model will be easy to understand and use.
For example, Netflix keeps things simple by only offering two plans: Basic and Premium. And they don't try to upsell their customers with extra features or add-ons. This way, people know what they're getting, and there's no confusion.
The same goes for Spotify. They offer two plans: Free and Premium. And they don't try to upsell their customers with extra features or add-ons. This way, people know what they're getting, and there's no confusion.
So, if you're a software company, don't try to upsell your customers on a higher-priced plan with more features. Just offer one simple plan that meets their needs.
Find the right price for your subscription service
Your subscription model should be priced in a fair way for both you and your customers. Figure out how much your service is worth and charge accordingly.
It's crucial to find the right balance between too high and too low for your SMS subscription service pricing. If you charge too much, your customers will look for a cheaper alternative. And if you charge too low, you won't be able to make a profit.
The best way to find the right price is to survey your target market. Ask them how much they would be willing to pay for your service. It will give you a good starting point. From there, you can adjust the price up or down based on your costs and profit margins.
Once you have a subscription model that customers love, be sure to work on delivering value and keeping them happy continually. This will help keep your customer base coming back month after month (or year after year) and increase the lifetime value of each customer. Also, they're more likely to recommend your service to others, which can help you acquire new customers without you even having to lift a finger.