Start a Subscription Service in the Cloud

Start a Subscription Service in the Cloud

Establishing a recurring revenue stream through the online sale of products, information, or services via subscription allows you to better plan for your business's future. There's nothing novel about subscriptions: you sell items or services to customers in exchange for regular payments (often monthly or quarterly). 

Now is a perfect moment to start a subscription business because of the recent rise in popularity of such services and the low barrier to entry associated with doing so online. What are the key ingredients for the success of this company plan? You can increase your consumer base and improve your product quality with careful planning and effective advertising.

Business Strategy

Create a subscription plan for something you're truly interested in. One example is a fitness-related subscription service, although this model may be applied to any industry. You need to care deeply about your concept in order to want to come up with new ideas for your subscription's theme on a regular basis.

One possibility is to offer lawn and garden management on a subscription basis, with customers able to specify how often they'd like their lawns and gardens cared for.

Consider starting an art subscription service in which you provide your customers with a rotating selection of seasonal artworks.

Identify the features that will set you apart from your competitors. If you want your subscription business to take off, you need to provide your clients with something they can't get anywhere else. Anything from a curated assortment of goods to professional guidance to a product or service that can only be obtained through a subscription service fits this description.

One possibility is to provide a compiled online article collection written by authors from all over the world on a given subject.

Learn as much as you can about the industry and your rivals. Once you have identified your target market, you may move on with targeted marketing efforts. Investigate current trends and see whether any other companies are operating in your industry from whom you might get insight. Using the data you've collected, visualize your ideal client in order to more effectively reach out to them in your marketing efforts.

If you want to launch a magazine subscription service, you may research competitors to see how they organize their websites and what kinds of features they include.

Get to know your target audience by conducting interviews, sending out questionnaires, or holding focus groups.

A lady in her twenties who is enthusiastic about gardening or eco-friendly practices could be an ideal consumer for your business.

More clients will be attracted if you provide two or three tiers of subscriptions. Provide various alternatives so that clients don't feel like they have to settle for one. If you want to provide the consumer with more flexibility in selecting the subscription that best suits their needs, you may offer a variety of subscriptions at varying prices and with varying features.

Subscription boxes can range in price from $25 for a smaller box with six items to $50 for a larger box with 14 items.

You may provide a more expensive "à la carte" menu where customers can pick and choose what they want.

Choose a price that allows you to earn a profit while still offering a reasonable discount to the customer. Determine a reasonable price by determining how much your subscription offerings would cost if purchased singly. It is important to calculate how much you will lose on each subscription before deciding on a price that will allow you to turn a profit while still providing a discount to your customers.

Don't worry too much about keeping your prices completely static, as it's possible that you'll need to make some adjustments as your firm expands or you learn more.

Make sure the cost of your subscriptions fairly reflects the value you're providing.

Maintain an order log for subscriptions using an online store. Although this can be done via email or your website, an online e-commerce platform can be a more efficient way to manage your orders. If you choose to use a platform, there are many from which to pick, including BigCommerce and Shopify. You may view details like who placed the order, how much they owe, and the specifics of the order itself on a straightforward interface.

Identify a provider for any subscription services you plan to use. To sell your things, you must find someone to sell them to. Whether you prefer online marketplaces like Etsy or eBay or brick-and-mortar shops in your neighborhood, you have many excellent choices. Find a vendor who will sell you goods in bulk at a discount, or shop around for the best deal. Get to know them early on so you can rely on each other later.

For a subscription box with a nautical theme, you may contact various sellers on Etsy that specialize in boat-themed handmade goods.

If you're going to be creating the goods yourself but still require the raw ingredients, you might want to check out whether or not a nearby shop offers discounts on large orders.

Take care to ensure that the goods you're selling to consumers are of high quality and not of questionable value.

Promotional Activities and Customer Interaction

Launch a web page where readers can browse available subscriptions and sign up online. Though you could create a site from scratch, using a website builder like Wix or Weebly makes the process simple. Make it simple for visitors to your website to locate the information they require by including navigational tabs like "About Us," "Products," and "Contact Us." Making your website user-friendly and aesthetically pleasing will increase interest in your goods.

Make it simple for clients to pay for their subscriptions on the site.

Ensure a polished appearance by picking a simple and elegant layout.

If you want more people to view your website, you can pay for advertising. There are those who believe that the best way to promote a product is to have as many people as possible see the ad. This can be accomplished using any number of online mediums, including standard websites, blogs, and profiles on various social media platforms. A good place to begin investigating online advertising is with Google Ads.

To get the word out about your company, set up profiles on several social media sites. If you run a subscription service, one of the best ways to reach a large number of potential clients is through social media. Create an account on Instagram, Facebook, or Twitter (or all three!) for your company and publish frequently to increase exposure. Share your website's URL on your various social media profiles.

For instance, updating your social media business page once or twice every week with relevant content will help you attract and retain followers.

Don't let your personal life seep into your work social media profiles, and always stay on topic.

For example, if you were to establish a book subscription service, you might take a picture of the books you send out and caption it, "Just some of what we're reading this month." "Need a good book to read?" "Let us bring them to you!"

Take photographs of the many beauty products you sell and include a short description of why they're so fantastic in the caption to promote a beauty subscription service.

Launch a customer-to-customer referral program to attract new clients. Incentivize client referrals by offering a discount on future subscriptions to both the referring customer and the new customer. A brief online announcement or an email will do the trick. This is a fantastic method of encouraging your existing clientele to actively seek out new business for you through their personal networks.

Maintain a steady stream of patrons with attentive service. Customers can be lost if you don't address their concerns quickly or if you don't contact them again after they've made a purchase to provide them with additional information on their subscription. Maintain open communication with your current clientele. Respond to their concerns as soon as possible if they reach out to you about a problem, preferably within a day or two.

When you're just getting started, it's extremely important to get input from clients about what's working and what may be improved.

You need to make it simple for your customers to reach you. The most efficient method is to have a "Contact Us" page on your website where all correspondence can be handled internally. Customers can contact you directly via email or phone if you provide those options. Doing so shows that you value their feedback and are interested in finding solutions to their problems.

Don't forget to include your contact details on your social media profiles.

Keeping Up With Your Company

Adjust your prices as needed to reflect the value of your products and services. You can adjust your prices once you've received some orders and have a clearer sense of the total cost of assembling each subscription. Perhaps there has been an increase in interest in your subscription service, in which case you could consider increasing your prices.

Carefully consider whether or not a price increase would result in a loss of subscriber savings.

To encourage them to sign up, you may provide coupons or discount rates.

As your company grows, you will need to hire employees to assist you. You may have been able to handle everything on your own at first, but now that your business is booming, you may need to hire more staff to ensure that your customers continue to receive the same fast and friendly service they've come to expect. Use online classifieds and forums to discover willing helpers, but make sure they share your enthusiasm for the company's success.

Verify that the wage you're offering each additional worker is competitive but does not significantly cut into your profit margin.

Maintain your investigations and your creative thinking about how to advance the company. Always be thinking about fresh methods to expand your business, such as adding seasonal extras to your subscription boxes or new products to sell individually. Because of this, you can rest assured that your company will continue to thrive and expand, much to the delight of your clientele.

Maintain a close eye on the competitors to determine if they have introduced anything new.

Manage your money well to guarantee a profit. It's easy to lose sight of the figures amidst the excitement of a company's expansion. Maintaining accurate financial records and a strict adherence to a spending plan can provide you with a clear picture of your financial standing at any given time.

A professional bookkeeper should be considered once your company has reached a size that requires accurate financial record-keeping.

It's important to take client comments into account and make any necessary adjustments. A few hiccups in your business strategy are to be expected before you find your footing. The greatest way to learn what is working well and what could be improved is to listen to your consumers. Send out questionnaires with questions like "How are we doing?" to get honest feedback and make improvements based on that.

If you want to get more responses from your consumers, you might offer them a discount on their next subscription in exchange for filling out a survey.