Why A Subscription Model Is the Winning Strategy To Promote Your Services
If you are in the business of selling content—whether that means lectures, courses, webinars, how-to books, etc.—there are many different ways for you to price your services. However, the million-dollar question remains: how do you draw customers in?
You could try to sell all of your content packaged under a single, large fee. But can you convince your customers to pay that hefty price upfront? A higher asking price tends to drive customers away.
Another idea might be to offer an entry-level option that will give customers a taste of your services. Unfortunately, there is no guarantee that customers who purchase this entry-level option will be convinced to upgrade.
This leaves one strategy: the subscription. A subscription offers several benefits that every business should consider. It allows a business to sell content to consumers at an affordable price, while also allowing for flexibility and expansion in the types of content provided. In other words, the content you generate could allow your business to expand in new directions that you didn’t initially think were possible.
Here is just a glimpse of the various ways a subscription model could optimize your business:
Steady Cash Flow
If you’ve experienced the stress of watching your cash flow fluctuate drastically every month, then a subscription model might be the best solution to stabilizing your finances. Subscriptions provide a steady and predictable income that you can depend on, making the subscription model perfect for a start-up company.
There is one caveat: the churn rate. Churn rate refers to the customers who decide to cancel their subscription every month. It may sound like something to fear, but a business that focuses on providing exceptional value to their customers can retain a loyal group of subscribers month-to-month.
Build Brand Loyalty Faster
Providing exceptional value is a surefire way to increase brand loyalty. If your subscribers feel like they are benefiting from a great deal, they will be far more likely to recommend your business to everyone they know. This, of course, leads to even more business, and more loyal customers.
Subscription services like Netflix, Hulu, Spotify, and Dollar Shave Club are all companies that have seen great success using the subscription model. Even Apple has launched Apple Music in response to this trend. These companies have conditioned consumers to expect a large offering of high quality content at low prices.
This means that you no longer have to build a relationship with the consumer before you can sell your main product. With a subscription service, you can make money from your customers while building a relationship with them simultaneously.
A Community to Test New Ideas
If your subscription service builds an online community, take advantage. A business with a community of subscribers will be able to learn from their customers using polls and feedback before and after your new content ideas are developed. With this insider information, you’ll be able to build the perfect product without having to worry about revising it to meet customer preferences.
A Solid Foundation for Growth
The subscription model has allowed businesses like Costco and Amazon to grow into what they are today. Amazon began by selling books, while Costco sold various kitchen products. Now, Amazon has become the biggest online retailer, while Costco sells everything from backyard furniture to auto insurance.
Their success began with the subscription model. By offering amazing benefits—such as free shipping, bulk packaging, and lower prices—businesses made their subscribers accustomed to these perks, making them their first choice when customers needed to make a purchase.
For many businesses, a subscription model is ideal for promoting their services. Contact Intact Info to have them develop a subscription model custom-tailored to the needs of your business.