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We are used to thinking of purchasing products or services as one-time rather than recurring, but why must you consider to start a subscription business?
Until recently, the idea of paying for something on a monthly or bi-monthly basis was reserved for services like phones, broadband, TV, and gym. Subscription businesses are trying to change that. Big brands and small merchants are utilizing this business model to have subscribers instead of one-time customers. They send products on a regular basis so that their customers don’t even have to think about when they might need to reorder them — the work is already done. It can also work to focus on themes subscription and provide new experiences with each delivery.
Even Amazon has picked up on this idea. They allow you to subscribe to household essentials through their Subscribe & Save program.
Subscription commerce are a fairly new concept in Malaysia and they can seem like an all-around win, but just like with consignment, this business model requires additional work with sourcing and focusing on customer retention.
However, it’s worth learning about how to start a subscription business because of the great potential to delight subscribers, obtain recurring order and earn predictable income.
Subscription boxes can unburden customers and provide steady business income
Most physical stores and e-commerce shops specialize in selling products one transaction at a time. In this model, the customers only get products when they remember or have time to purchase them. We all know about the power of the reorder point, but in our personal lives, it can be easy to forget to order more toothpaste or coffee as we run out.
Subscription businesses are a hybrid of services and products that sell an automated experience. Brands like Dollar Shave Club offer the luxury of never running out of an essential product and no longer having to think about reordering. Subscribing means that customers have one less decision to make in their personal lives, which is a compelling selling point.
The same goes for food subscription services — they take away all of the hassles of choosing recipes and shopping for the correct ingredients. Weekly deliveries from services like HelloFresh solve this. Subscribers win back time and energy — which can amount to a few extra hours per week — and subscription businesses win by building up a base of subscribers that provide regular income.
When you start a subscription box business your focus shifts from individual transactions to lifetime value (LTV)
The main challenge for subscription businesses isn’t just finding new customers, but actually retaining customers as subscribers. This requires a mental and financial switch. Subscription businesses view revenue over the lifetime of a customer — this is called lifetime value or LTV. If a company is not set up to properly track and improve retention, it won’t succeed as a subscription box business.
Subscription commerce let your business focus solely on a niche
Aside from regular recurring revenue, another reason you might want to start a subscription business is the ability to focus on a small niche. LittleBello, for example, sends pregnancy products to new mothers monthly custom based on their trimester.
With greater conscious awareness about the chemicals that are found from food/ snack to beauty products to baby care products, LittleBello was founded with the commitment to provide and promote brands that shared just those values – which were fundamentally important to pregnant women, new moms, and babies.
LittleBello is a monthly delivery club for moms who want to discover and save on the very best non-toxic, organic, natural and unique products for themselves, their babies and their homes. The Club offers customizable monthly boxes tailored for pregnancy, new baby, toddlers and beyond.
Get started with the all-in-one subscription e-commerce marketplace
PopWonders is designed to help merchants launch their own subscription businesses by streamlining the process for them.
PopWonders allow merchants or retailers to list products and use the backend system for free. PopWonders automate subscription processing and transactions for online merchants and will charge customers a small fee for each transaction. On top of handling all of the financial transactions for their merchants, PopWonders also provides services like inventory management/shipping tools, brand-building assistance via influencer marketing, hybrid AI chatbot and in-depth data analytics.
And on the other side, allow customers to discover and subscribe to their perfect box.
So signup now with PopWonders to experience the future of the e-commerce marketplace platform!
For merchant, contact us at:- merchant@popwonders.com
For KOL/Influencer or any inquiry, contact us at:- hello@popwonders.com