Do you run a subscription-based business? Kudos! Creating a subscription offering with great products takes a lot of effort. What’s harder is to gain traction and convert your prospective customers over to subscriptions.
But if you look on the bright side of the subscription business model, even the smallest improvements can result in compound success over time. All you need is effective strategies to optimize your subscribers’ experience.
Not sure where to begin? Here are three proven tips to help you get the most out of your subscription business in 2022.
Get Insights About Your Customers
One of the biggest faux pas that subscription-based marketers make is ignoring the importance of customer insights. Just like any other business sphere, learning about your customers and their behaviors can help you achieve efficient results.
The best part is that there are myriads of ways to get insights about your subscribers. The right thing to do is install an analytical tool on your website. Tools such as GoSquared and Kissmetrics help you understand your customers. You can then use the collected data to determine what you need to improve your website.
Other ways to determine your subscribers’ behavior and attitude towards your subscription products include customer feedback, sentiment analysis, and third-party data.
Update Your Pricing Model Often
Pricing is the most valuable aspect of your subscription business. If your price isn’t right for customers, you may miss out on acquiring new customers and increasing the value of your existing customers.
You should decide on a price level that feels right to your target audience. If the price is too cheap, subscribers won’t value your offering. If the price is too expensive, they will become reluctant to invest.
Subscription pricing strategies can be decided according to functionality. You can also offer discounts based on the time of use and incentivize bulk purchases.
If your ultimate goal is to increase your subscriber base, you can provide free trials, early bird coupons, virtual coupons, and long-term commitments to attract new customers. We suggest starting with two or three basic pricing tiers and adjusting them over time, as per your customers’ response.
Focus On Building Connection With Your Customers
In the UK, people spend more than £2 billion every year on subscription services, which means there is enough scope for a subscription-based business to grow exponentially. One of the sure-shot ways to stay at the cutting edge of the competition is to focus on building a strong connection with customers.
Besides creating a steady flow of interest in your membership offer, you need to develop a strategy to retain your customers who have already signed up. Upsells and cross-sells are a great way to increase customer value, as well as your revenue.
You can also take advantage of messaging platforms to keep your customers engaged. For example, personalized video messages and emails are effective marketing tactics that help develop strong relationships. Consider the example of live cricket online streaming sites – they connect with people by posting content in the form of real-time pictures, live videos, live scores, and blogs. Some platforms also have the option of live chat.
A study by REaD Group shows that 80% of customers are more likely to make a purchase if the retailer shares personal content. Thus, use whatever you know about your subscribers to develop trust and a sense of reliability among them.
Subscription businesses are the future of the market. In order to stand out from the crowd, you need to test multiple strategies (as mentioned above). Once you know what’s working and what’s not, you can easily find the right combination to take your subscription business to the next level.