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8 Essential Tips for Growing Your Subscription-Based Retail Business

Subscription-based retail businesses have been growing in popularity in the Philippines in the past few years. Many local consumers, especially those living in urban areas, have become quite familiar with the conveniences of signing up for subscription programs that specialize in providing custom meals, curated beverages, pet toys and treats, clothes and accessories, and a myriad of other products. But it’s not just consumers who are getting enamored with this selling format. Entrepreneurs appreciate how offering subscription programs enables them to have predictable revenue. Subscription-based retail also presents a business with opportunities to get started with a lower upfront cost, explore innovative offerings, and target niche markets made up of dedicated customers.

Perhaps you’re in the middle of growing your subscription-based retail business or you’re considering giving your customers the option to sign up for your brand’s subscription program. In that case, you can use the following tips to ramp up the growth of your venture.

Launch Referral Programs
Launching referral programs can be a powerful growth strategy for your subscription-based retail business. Encouraging your current subscribers to refer friends, family, and acquaintances can quickly expand your customer base. Satisfied customers can serve as ambassadors for your retail business, and their recommendations can help your brand build trust and credibility. This, in turn, can convince more people to sign up for your subscription program.

To encourage more of your customers to share news about your subscription program, offer incentives for successful referrals. This can be in the form of discounts, exclusive content, or even free months of subscription. Create a streamlined referral process as well, and provide sharable referral links that make it easy for your existing customers to spread the word.

Accept Various Payment Options
Providing a variety of payment options is crucial for the growth of your subscription-based retail business. By accepting credit and debit cards, digital wallets, bank transfers, and even cash on delivery, you can cater more to your customers and reduce friction during the checkout process on your e-commerce store. This accessibility ensures that potential subscribers don’t abandon their carts due to limited payment methods.

To this end, choose to integrate a highly flexible WooCommerce payment gateway into your website. Maya Checkout, for one, is a payment gateway WooCommerce-based businesses prefer to use because it’s capable of accepting a wide variety of payment options. At the same time, the Maya Plugin for WooCommerce makes it easy for business owners like yourself to integrate this payment option into your e-commerce platform. There is also a similar plugin for Shopify users. By accommodating a range of
payment preferences, you make it convenient for more people to subscribe to your offerings.

Use Personalization Strategies
Utilizing personalization strategies can greatly enhance the customer experience and drive growth for your subscription-based retail business. You can make your customers feel seen and valued by tailoring content, product recommendations, and marketing messages based on subscriber preferences. Personalization, then, leads to higher engagement rates and encourages longer subscription commitments. To gain insights into customer preferences and behaviors, use data analytics and deliver targeted messages and offerings that resonate with your subscribers. For instance, you can recommend products based on their previous purchases or send personalized offers on their subscription anniversaries.

Offer Diverse Subscription Plans
Offering diverse subscription plans enables your business to cater to a wider range of customer needs and budgets, thereby fostering growth. By providing options for different levels of service, features, or access, you can attract a broader audience. For example, you can make it an option for subscribers to sign up for tiered plans with varying pricing and benefits, such as basic, premium, and deluxe tiers. This ensures that potential subscribers can choose a plan that aligns with their preferences and financial capacity.

Provide Free Trials and Samples
Free trials and samples remain an effective means of gaining returning buyers even for businesses that offer subscription programs. Allowing potential customers to experience a taste of your subscription offerings before committing financially helps build trust and confidence in your products. It removes barriers to entry and fully showcases to consumers the value they can expect.

To maximize the impact of this promotional effort, make sure the trial period is long enough for users to fully explore and appreciate your offerings. If you offer a subscription box service, for instance, consider providing a free sample box to selected individuals or offering a limited-time free trial to entice potential customers to subscribe.

Implement Upselling and Cross-Selling
Maximizing upselling and cross-selling opportunities can significantly increase the revenue of your subscription-based retail business. Upselling involves encouraging subscribers to upgrade to a higher tier plan with more features. Meanwhile, cross-selling involves offering complementary products or services. For example, if your subscription business is for beauty products, you could upsell to a premium plan with exclusive products or cross-sell with skincare accessories. Effective upselling and cross-selling boost average revenue per subscriber and enhance the program’s overall value proposition.

Provide Excellent Customer Support
Excellent customer support is a cornerstone of growth for your subscription-based retail business. Promptly addressing inquiries, concerns, and issues helps build trust and loyalty among your subscribers and encourages them to stick with your program, as they have an assurance that you’ll make every effort to give them a satisfactory experience. A positive customer experience, in turn, increases the likelihood of renewals and referrals. To provide excellent customer support, ensure your customers can get in touch with your business through email, live chat, and phone support. A comprehensive FAQ section on your website can also go a long way in addressing common questions and providing customers with resources for common issues and concerns.

Reward Long-Term Subscribers
Recognizing and rewarding long-term subscribers can foster loyalty and retention in your subscription- based retail business. With loyalty programs that offer exclusive perks, discounts, or early access to new products, you can encourage subscribers to stay committed to your service. A “loyalty tier” product line just for subscribers who have been with you for a certain duration, for example, can give your long-term subscribers something to look forward to. Such an offering acknowledges their loyalty and creates a sense of belonging, thus making it less likely for them to cancel their subscription.

By implementing strategies such as launching referral programs, using custom payment gateway WooCommerce and Shopify websites typically employ, and making every effort to offer satisfactory customer experiences, your subscription-based retail businesses can take steps to achieve sustainable growth and expansion. These approaches not only attract new subscribers but also nurture existing ones, contributing to a thriving and successful business model.

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