The Future Of Online Retail: Ecommerce Subscription
The revolutionary age of redefining all businesses is here with e-commerce subscription. As time passes, many brands are signing up for this subscription model to elevate their company to the next level. It is becoming the norm nowadays, from coffee deliveries to Spotify to Netflix, including the kits of food preparations. By the year 2022, this business model is expected to hit $1 Billion. We are hopeful that an ecommerce subscription is a future for all of us. We will take you deeper into the article by delving into the discussion.
How Does It Work?
You need to pay close attention to the mechanics of owning an e-commerce subscription-based model. It consists of a business type of model, where a brand offers ongoing services regularly, all in exchange for the customer’s regular payments.
Some relevant examples would be how Spotify, Netflix, and Amazon went in early and began establishing themselves as subscription OGs or giants. Here, these services tend to be present everywhere, so most consumers end up taking them for granted.
You will come across three forms of common subscription models. They are:
Replenishment: This subscription allows consumers to start automating their purchase containing necessities like nappies or razors.
Curation: This subscription provides new products. It also offers experiences that are highly personalized in categories like apparel, food, and beauty.
Access: Here, the subscribers tend to benefit from the lower prices or the perks of member-only.
The Advantages of Subscription Business Model
We will be highlighting some of the benefits that come from being a member of the subscription model. They are as follows:
- There is a credit back for all the extra purchases.
- You will have access to store credit.
- Members will enjoy discounted or free shipping.
- There are exclusive benefits associated with special occasions like birthdays and subscriber anniversaries.
- Early and exclusive access to content or products that are only for members.
- You will also enjoy discounts on the entire catalogue or certain selected products.
- Lastly, features such as free trials and exclusive/bonus items are present with the purchases.
Ideally, you must include features that end up leaning into what your subscribers base is valuing. These benefits present above will lead to a major uptick in the customer’s loyalty. The subscriptions’ recurring nature just means that the consumers will end up returning to you over time and the competition. It offers you a bigger share from their wallet.
Does Loyalty Matter Here?
The relationship between the brand and the customer is the key element here. The bond is important while they are a member and not just during the acquisition phase. We encourage you to motivate your consumer to stay. You can do this by providing certain benefits that come with the subscription model. Here, you can refer back to the points that we mentioned above. You have to remember that the interaction process is continual.
You will need to implement multiple business measures for ensuring loyalty in practice. We advise you to begin by incorporating your subscription model using a loyalty program. It allows you to offer additional value and perks to your customers. In this way, you encourage them to come back.
Does It Hold a Future for Your Brand?
Subscriptions models are becoming a major trend nowadays. You need to explore its possibilities for exploring generating long-term revenue. Majority of the e-commerce subscription models that are successful functions well whenever companies are well committed to treating the current customers with encouragement and care. Here, you need to think about two central themes whenever you explore this platform for your company. And those two themes include convenience and loyalty.