Dogboxmedia: Subscription-Based Model? Join the club!
Over the past few years, there has been a significant rise in the use of subscription-based models. Many successes include Netflix, Spotify, and the UFC, with the introduction of their PPV Model.
The subscription-based model is not an old model and was primarily adopted by magazine companies and large news organizations in order to grow their monthly revenue.
Recently many companies across different sectors have begun to adopt this model, mainly because of the core benefits that it provides. Digital Agencies, Subscription box services, Software Platforms, and Content rich providers have all bought into this model, citing benefits such as competent budgeting, staff management, client retention, and healthy predictive revenue.
Subscription-based marketing could be the way to go for your agency or business, and here is how you can apply it
Offering Free Trials
Focus on VALUE. Offering a free trial allows for potential customers to get a glimpse into your onboarding process and the type of services they will be receiving from you before going all the way.
As a business this allows you to offer a service that won't damage you financially and that you are able to perform with ease for your potential customer in an effort to wow them. Showing a client the value of your business early on is a good way to increase your sales, revenue, and customer retention.
Many examples of this can include software companies that offer 14-day trials, making it so appealing that they have high customer retention percentages and increased business.
To be successful in the free trial process, emphasis must be put on user experience, effective communication, and customer satisfaction. Many overlook this part of the subscription model but it could be the spark that helps your business grow and scale exponentially.
Work with Affiliates/Influencers
In this wonderful new world of influencers, it is important to partner with brands or people who are able to reach masses. A way to do this would be to source influencers to like, share, and promote your product or service either by using it within a post or creating awareness around it on their preferred platforms.
Sourcing influencers can be as easy as sending a direct message via Instagram or checking out their profiles which usually has a contact email for and queries. The only stumbling block in this approach would be choosing someone who resonates well with your brand and does not engage in acts that could tarnish your company’s reputation.
An example of this can include Lance Armstrong, who in 2012 lost many sponsors after admitting to the use of banned substances. Among these sponsors included a health and wellness company, 24-hour fitness.
What makes you different?
It is important that agencies and businesses focus on differentiation. The success of the subscription model is dependent on how well the company can differentiate itself from its competitors whilst still delivering a product or service that is better, quickly accessible, and easy to use.
Adobe and Canva both provide a platform for individuals to create high-quality graphic designs but they effectively differentiate themselves in order to appeal to their desired target audiences. Adobe focuses more on digitally inclined individuals in a much more professional space, whereas Canva is open to the broader public, especially those who are looking to get into graphics design or digital marketing.
Subscriptions are the new way to go for many companies in our day and age, but the only way to win new customers and retain loyal ones is to offer value for money, work with those who have more reach and place an emphasis on differentiation.