A few years ago, the monthly subscription business model only applied to products like magazines and gym memberships. Recently, however, the subscription space has grown hugely in popularity. Covering everything from makeup to meals, it seems like there is a monthly subscription service for just about anything. New businesses launch every day with the goal of sending curated experiences to keen subscribers.
In this article, we’ll show how you can start your own monthly subscription business. So, if you are also considering starting a monthly subscription business, check out the tips below.
Conceptualise your Monthly Subscription Business
Start by exploring ideas and developing a brand concept. Once you identify your niche, do some exploring on social media and YouTube to find products that your ideal customer uses or loves. It is very important for you to develop your goal early. What exactly do you want to accomplish through subscription? More revenue, faster growth? Mapping out your goals will help you define how you build your buyer personas and structure your pricing tiers.
Conduct Research on Competitors and Product Suppliers
There are already tons of subscription businesses out there, so if you’re starting a subscription service, you need to have something that makes yours stand out. We’re talking about finding a niche that isn’t overly saturated, where you’ll be able to fill a void or improve on the products of your competitors. The only way you’ll be able to determine if your subscription business meets these requirements is by conducting some serious competitor analysis. Similarly, you must conduct research to identify the suppliers for the products that you’ll be selling. You will want to put extra effort to vet their reliability and determine whether or not their costs per product fit your budget.
Plan a Budget
It is equally important for you create a clear and well-defined budget. You must consider all of the costs involved in production, fulfilment as well as customer retention to get a clear picture of what you’ll need to spend/charge to be profitable and successful in the long term. You can start by mapping out:
- The amount you expect your customers to pay for the products you’ll be sending them
- The amount you expect to pay for the products you send every month
- The cost of packaging and fulfilment
- The average lifetime value of customers in your niche
- Marketing cost
Establish Your Branding
If you want people to notice your subscription business model you need to come with effective branding techniques. Start by choosing a catchy business name. It needs to clue people in to the type of business you’re in and the types of products or services they will receive when they order from you. You can also think of a logo. A great tip is to be unique but keep your design simple so that it is not difficult for people to understand your brand name. Then, remember to trademark your logo to ensure that only you have the sole rights for use.
Ensure that the Billing Process is Efficient
You can easily lose out on revenue of your subscription billing system isn’t reliable. When your customers are actively trying to pay you monthly, they must realise the value of your product or services every step of the way. You can do so by understanding the complex process involved in account billing using modern software services.
Create and Launch Your Website
Your website is going to be the foundation of your monthly subscription business and it will act as the public face of your brand. Moreover, your customer service, marketing and every other interaction with your customers will revolve around your website. If you’re new to Ecommerce, figuring out the technology side can be challenging. Remember to include various documents like Website Terms and Conditions of Use and a Privacy Policy.
Develop a Strong Customer Network
You monthly business subscription will be dependent on strong and lasting customer relationships. Build some buzz around your new offering to get people excited about signing up. You can do this by collecting email addresses, posting on social media and maybe by investing in some online advertising. Accordingly, it is also very important for you to focus on retaining customers for as long as possible by fostering these relationships.
Conclusion
Starting any kind of business can be an exciting time however, it can also be quite challenging, even daunting. If you need help setting up your monthly subscription business contact a business lawyer today.
