As a business owner, you’re always on the lookout for new revenue streams. If a subscription service is top on your list, it would be no surprise. As of 2020, the subscription economy had grown by more than 435% over the previous nine years. This growth shows no signs of slowing down, with subscription services predicted to become a $1.5 trillion market by 2025. Consumers enjoy the tangible benefits subscription services offer, such as discounts and convenience. And for businesses, offering a subscription service is a great way to generate recurring income and boost customer retention.
If you’re considering a new subscription service, or if you already offer one and are looking for ways to get new subscribers, here are ideas to grow your annual and monthly subscription offerings.
Getting your offer in front of customers
The age-old marketing rule of seven states that a buyer needs to see an ad for a product or service seven times before they purchase it. So, finding ways to inform or remind customers about your subscription and its value is essential. Here are some ways you can do this.
Run an email marketing campaign.
Email remains one of the most effective ways to promote your business online, with a $36 return for every dollar spent. With Square Marketing, you can send personalized and automated email and text campaigns that include updates about your subscription. For example, you can set up a welcome email with a discount for new subscribers to encourage subscription sign-ups.
Share updates on social media.
Showing up consistently on social media helps you stay visible and top of mind. For example, if you sell subscription boxes, you can share behind-the-scenes photos of packaging a box or packages delivered to customers. Watch for posts from existing customers, then engage and reshare the best content.
Upsell subscription offers at the point of purchase.
Upselling customers at the checkout counter remains an effective marketing strategy. You can offer a free trial or discount to make the offer more appealing, but first, it’s crucial to deliver a smooth payment experience to make it easy for your customers to say ‘yes’ to your subscription offer. For example, with Square POS, you can create automatic discounts for a specific item or category or set up a limited-time offer. That way, once customers accept the deal, you can process payments quickly without any delays.
Promote subscription offers on your website.
Create a FAQ page that answers customers’ most critical questions about your subscription offer. Include a link to the FAQ page in your navigation menu and other pages where customers are most likely to see them. If you have an online store, you can easily create new pages and manage navigation menu links within the Square Online site editor—no coding or programming knowledge is required.
Promote subscription offers in-store with decals, signage, etc.
One promotional idea is to print a QR code that takes customers to a discounted subscription offer or free trial. When customers scan the code, they can pay directly from their phones.
Revamping your current subscription program
If your subscription program has been around for a while but new sign-ups have plateaued, it may be time for a reassessment. Even if your subscription is popular, a few adjustments could bring some “freshness” and get customers talking about “what’s new” — precisely what you need to attract new subscribers.
A great way to see what needs changing is to request feedback from current subscribers. Square Feedback allows you to collect private customer feedback through digital receipts. The feedback is connected to transaction records so you get adequate context, allowing you to respond intelligently. You may consider conducting a survey to get more specific customer insight on your subscription offers.
The most critical areas you may want to get feedback on are:
- Value: Do customers feel they are receiving value for their subscriptions?
- Price: Is it right?
- Subscription model: Are you using a suitable membership model? Perhaps your customers are interested in tiered offerings, but a one-size-fits-all subscription or membership may be easier for your customers to understand.
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Making an irresistible offer
It’s not enough to promote your subscription; you need to ensure your offer is attractive to new customers. Here are some ways you can do this.
- Communicate the value of your subscription in clear, simple terms. Show customers how the subscription can save them time, money, or effort.
- Create a sense of urgency. The easiest way to do this is to create a time-based offer. You can offer customers who sign up within a specified time frame additional perks, gifts, or bonuses.
- Include guarantees. This could be a free trial or money-back guarantee.
- Personalize offers. For example, with Square Customer Directory, you can assess crucial customer data like purchase history, store locations visited, loyalty status, and more. You can then make tailored offers based on that insight.
Subscriptions are a great way to generate recurring revenue for your business. Done right, it can help you attract loyal customers and increase customer lifetime value.