Buyer seller: A partnership plan.
Subscription model successes and failures are a well-known story in the leading business enterprises ranging from entertainment to e-commerce & healthcare sectors. But often companies are flummoxed when it comes to retaining their existing subscription box model in time . It is certainly a challenge to keep it going!
Why they work in the first place?
They may work if there is perceived value and convenience to the customers. And for the company, if there is revenue generation through repeat sales.
Here is where intelligent pricing matters. ( ensure it feels like a good and worthy bundle for the price of one from the Customers perspective.)
Here are a few suggestions from a company perspective on reworking the Box model.
Work on building a long term relationship with existing customers.
Chalk a customer-centric approach.
At times the surprise element can backfire.
Call and build awareness of the products and its USP beforehand.
Use the Customers who are satisfied for referrals socially.
Innovations in service and delivery can help.
Let the Customers know the products are service-oriented and not sales oriented. It charges their emotions towards a sale.
Companies perhaps offer treats tickets offline events and give some coupons freebies or opportunities for them to be brand loyal.
Work on building a community of people who get a product to try at a discount or offer a discounted first-month price. Will be a great chance to understand market demand.
Increase the customers’ perception of the utility of the products by creating greater awareness.
When an online purchase is done
Offer a subscription box at the point of sale with an offer and an explanation of how the company is doing good for the world at large.
User growth may eventually decline in the case of predictive products.
Keep it fresh and interesting.
Make sure to check complacency from employees once the monthly boxes are shipped. As a company be genuinely interested to know if the box is making a positive difference to the customer. Insert a survey link or feedback suggestions for improving the service.
Initially, Customers often start off wanting to exact the full value of the price paid in terms of the products or services. Like fitness subscriptions and then there is a waning interest unless the customer is kept engaged.
One of the proven flaws of the model is that it is suitable for certain Business and not for others. Like it may work where there is a service or product that is needed continuously but not for once in a while kind of demand products.
With too many entrants and the overkill that is visibly overwhelming to customers
Business models often need to keep improving their presentation, content, services and products and try exceeding the expectations of their registered clients for retention. In an extremely competitive market scenario, this is can be a double-edged sword.
There may also be waning interest of existing subscribers due to a perceived lack of control over the products delivered to them.
Financially is it viable?
This is a necessary question that a business must consider from time to time.
As in time, the user may prefer to choose between models that offer other likewise or similar category products.
And prefer only one among many such models after evaluating the benefits.
While every individual is different,
Customers may find the company idea of piecemealing or compiling all together redundant and may prefer to buy a one-off product that they actually need.
As simply sending something to a person continuously may make the product less wanted or needed in time.
With too many subscription models in the market, Customers cannot be conned as they are aware of the gameplan due to existing and already functional models
So the ‘why the model is good to buy’ is important to a seller to know and convey to the client always.
Time to rethink and unbox to connect the dots.