Can your business offer a subscription?
More and more, subscriptions are becoming a common way to pay for products and services. Generally tech enabled; streaming service subscriptions, subscription services for basic goods like razors and toothbrushes, free shipping subscription clubs, newsletter and podcast subscriptions, monthly clothing subscriptions, gaming and e-sports subscriptions, creator subscriptions, food of the month subscriptions, coffee of the month subscriptions, wine of the month subscriptions, Amazon Web Services, reoccurring donations, subscriptions, subscriptions, subscriptions. There’s a lot of subscriptions, and there’s a reason for it! Subscriptions are a fantastic way to keep customers engaged with your business and offer them the flexibility of being able to cancel their membership at any time.
It may be hard to remember, but the primary way of making money on Apple’s App Store, a $64 billion business, used to be selling access to an app as a one time purchase. It was only in 2011, when Apple started offering subscriptions for apps on the App Store, four years after the iPhone was announced. Back in the early days of the App Store, developers would usually sell their apps for 99 cents, or more if the app was a professional grade app or premium service. This was great at the time, as it was a new way for software developers to monetize their work, and a brand new way for consumers to find and buy apps for their cellphones. As smartphone adoption became the mainstream, app stores became common and subscriptions became standard, Apple’s App Store and others like it became platforms that enabled whole new industries that created billion and trillion dollar companies.
If you sell an expensive product or service, can you turn that price tag into smaller monthly payments? Photoshop used to be an extremely cost prohibitive software for people to use, or let alone buy to see if they like graphic design. Because of this, graphic design was much more expensive and difficult to find people with experience. As more people started using computers, and Adobe introduced a new monthly subscription plan, more people are now able to download creative software, and figure out if that’s a skill that they’d like to learn.
Software isn’t the only business that is going to a subscription model. Panera Bread, known for bread bowls, bagels and baked goods is now offering customers a coffee subscription plan. For the cost of a couple cups of coffee a month, subscribers can get unlimited coffee. This keeps those customers coming back for their coffee in the morning, where they now may now buy a breakfast sandwich. That customer may now go to Panera for lunch now too, because of the free coffee refill. Subscriptions can be any part of your business that keeps your customers engaged with your business.
Most website platforms that offer commerce tools also offer a subscription plan for businesses to create. You can get creative with what you offer, like a surprise of the month club, or use a subscription to collaborate with a local nonprofit, like a book of the month club for a local coffee shop. If you’re a yoga studio, can you offer a subscription to unlimited classes, or virtual classes? If your business has an expertise, then maybe you can create a paid newsletter for information and advice on your domain. What will your subscription be?
