Since the popularization of It is not strange to find a person who prefers to buy online. You must have done it several times yourself!
In addition to the obvious advantage of convenience, those who decide to buy online are looking for exclusive products, and usually with prices well below what is practiced in the market.
What will we pay attention to now? To monthly subscription clubs. There are wines, books and even shaving products!
Below we explain how this business model works and why it can be interesting for both entrepreneurs and brands. Follow us!
What is a subscription club?
The subscription club is a business model in which products are marketed on a recurring basis.
In practice, joining a subscription club is like subscribing to cable television. One buys a package of services and pays a fixed amount, receiving in exchange the product in our house without having to repeat the purchase process.
In the case of digital products, such as Y the user has unlimited access to your product and/or learning area.
Kindle Unlimited, for example, is a service available to both those who have a digital reading device and those who have a smartphone. In it you download the Kindle app and pay $9.99 per month in exchange for access to all the ebooks available on Amazon.
This amount represents a significant saving for those who have the habit of reading, since the minimum price of a single ebook on Amazon is around 3 dollars.
Another example is , a popular streaming service where the user downloads the application on the mobile phone without consuming the memory data of his device. The service is offered for free, but it also has monthly subscription plans with amounts that do not exceed 12 dollars USD.
But why would someone subscribe to a streaming service, if they can use it for free or at a lower cost? The answer is simple: access to its exclusive features.
Spotify Premium user can do various things that ordinary user can’t, like infinitely skip tracks and even listen to music offline. In the same way, those who use Kindle Unlimited can read enjoying the comforts of having a huge collection at their disposal.
Here is our golden advice: before creating a subscription service, think about the advantages that you will offer to the consumer!
“What can I do to improve my subscriber experience and how to implement it in my business in a sustainable way?”
Another question you should always ask yourself: “Does this functionality add value to my product?”
If the answer is no, consider the options that best fit your brand.
At we talk specifically about Y the ssubscription services. Take the opportunity to take a look at them!
What are the main characteristics of a subscription club?
Although convenience is one of the main characteristics of a subscription service, it is not the only one. Here’s what you most need to offer to provide quality considerate service:
Selected products
The factor that most encourages people to participate in subscription clubs is the quality of the product being marketed. For that reason, make sure you offer high value-added items that help the consumer reach a desired state or solve a problem.
Exclusiveness
Subscription club consumers are looking for services and products that are unique to the market. This model is therefore an extraordinary opportunity to test solutions before .
Recurring payment
In a subscription club, the client does not need to worry about payments, since the amount for the service provided is deducted from the credit card or bank transfer through payment receipts issued automatically.
To serve all consumer profiles, from the riskiest to the most conservative, it is important that you offer and be flexible in plans.
What are the advantages of having a subscription club?
The subscription club model offers several advantages for both those who sell and those who buy products.
Benefits for the entrepreneur
We show you below how you can benefit from developing this business model.
Customer loyalty
One of the main advantages of creating a subscription club is the ability to retain your customer for a longer period of time, with which you have more possibilities to present the differentials of your product, hook your base of customers and increase Lifetime Value or LTV of your company.
The LTV, for those who do not know, is a marketing metric that determines the value that each customer generates over the period of time in which they have a business relationship with the company.
To obtain this variable, all purchases made by the user are considered, from the moment of acquisition. In the case of the LV subscription club = amount of the monthly payment for the time of recurrence.
It goes without saying that the higher your LTV, the higher your average ticket will be and, consequently, the .
Greater predictability
By having a fixed monthly subscription, clubs generate recurring income, as they are less affected by market fluctuations and .
The equation is simple: if you have control of the number of active subscribers and the payment information of each one of them, you will know exactly how much you are going to invoice in that month and you will not depend on the behavior of single sales, if you also use this model.
If the income is linear, consequently you have more freedom to make investments, which can attract more users to your subscriber club, creating a positive cycle for your business.
Better stock management
In the case of physical product subscription plans, you know exactly what will be shipped in each kit, so you don’t run the risk of having products accumulated in your stock due to lack of demand.
For that reason you also manage to negotiate better prices with your suppliers, since you will buy large quantities of a certain item.
Reduction of operating costs
The predictability of the subscription club is not only limited to the financial aspect.
By knowing the number of subscribers you have and having greater stock control, you can optimize distribution logistics and thus reduce operating costs and waste.
Bonus: Product Feedback
Imagine the following scenario: you are a digital producer and you sell language classes, but suddenly you decide to diversify the format of your product.
Now instead of just selling conventional, you also want to talk a little about the culture of each country. Actually, you can do that in several ways, but you still don’t know which is the best format.
In the example above, the subscription club can serve as a sampling to test your ideas and ensure the premise of exclusivity for the buyer. This is a simple way to do it:
- Make the first version of your product available to your subscribers.
- Monitor accesses and comments from buyers.
- Make the necessary optimizations based on the suggestions made by your audience.
If you want a more specific result, you can do an opinion poll with your subscribers, using tools like Y .
The permanent management of your community will help you understand what your public expects and always send you the news that you want. .
User Benefits
Here’s why membership clubs have become so popular with consumers.
Easier checkout process
According to the eCommerce evolution and perspectives report carried out by the renowned , “63% of the online stores surveyed calculate that this growth will be more than 10%, compared to only 41% who considered this data a year ago”. That means that online shopping is no longer a trend, but a reality.
Despite this, there are still some users who refuse to buy online for fear of fraud or because of the delay in the purchase process.
With subscription clubs, the consumer only has to make the purchase once and receive the product at home and, in the case of digital products, have immediate access to its content. In other words, the subscription club gives buyers a much more comfortable and less bureaucratic experience.
More affordable prices
In the subscription club model, the entrepreneur earns more based on the number of subscribers than on the number of products sold, since the payment is recurring. Thus, the prices are cheaper than if you buy a product or service individually.
In a wine club, for example, the consumer pays a fixed amount per month and receives a number of bottles of the drink at home. If he were to buy those drinks separately then he might have to pay a higher price and still not have the confidence that the delivery would be of the same quality.
Exclusiveness
Subscription club customers have access to exclusive services and products before they are launched on the market. Netflix, for example, offers several of its own productions that we cannot find on cable television stations or on the Internet, at least not legally.
How can you create your subscription club?
To create a club subscriptions You need to decide the type of product you are going to market, the audience that best fits your promotion and the best platform to host your products.
In this topic we are going to talk about each of these steps!
1.Choose the market of action
The first step in creating a club subscriptions is to decide the product that you are going to commercialize.
First of all, we advise you to do research on different markets before making a decision. At this stage Google will be your best friend, of course!
Ideally, the chosen niche has a good demand and, at the same time, is sufficiently segmented so that you can offer a differentiated service. And of course, it also has to be an area that arouses your interest, which will facilitate your management.
Learn now to do your following only 4 steps.
2. Know your audience
The subscription club model fits like a glove for people who use the Internet to perform routine tasks such as studying, paying bills and shopping. But within that generic group some cutbacks have to be made to also known as a buyer person.
Obviously, having a goal for your promotion will save you both time and money!
3. Select the products
After conducting a market survey, it is time to select the products that you are going to market with your subscribers.
Let’s imagine that you have chosen the fitness niche. In this case, the…
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