Subscription marketing is proving to be one of the most lucrative ways to market your business. According to McKinsey, effective subscription marketing has been responsible for billions in revenue over the past decade.
Both consumers and businesses alike love subscription services. It’s a surefire way to retain past customers and for those customers to receive more discounted products and services.
And the subscription service model is looking more promising by the year. With continued success from our friends at Loot Crate and the boom of digital streaming services, subscription businesses have a bright future.
In fact, according to Deloitte, nearly 40% of survey participants began using subscription streaming services like Netflix, Hulu, and Disney+. Of those asked, over two-thirds said they’d be interested in continuing their new subscriptions. And with tools like connected TV, it’s no surprise that subscription-based businesses are gaining more traction.
What Is Subscription Marketing?
Subscription marketing is marketing a business’s products and services to repeat customers regularly. With subscription marketing, the main crux of the marketing strategy is acquiring new customers while also retaining your existing loyal customers. Business owners and digital marketers are constantly working towards creating the perfect experience for subscribers.
Subscription services run the gamut from monthly pet supplies orders to your door or your favorite digital streaming service. The challenge for these services is: what about my product will entice new and existing customers to opt-in? How do you nurture a customer-business relationship for a subscription business?
Let’s step back and look at the best ways to capitalize on subscription-based business models and how to achieve customer retention better.
You Need Email Marketing
Along with social media marketing and paid advertising, email marketing is one of the most valuable tools in a digital marketer’s toolbox.
Email marketing is vital to the success of any digital marketing campaign, and this is doubly true of subscription-based businesses. After all, you’re aiming to build long-lasting relationships with these people.
Good email marketing is much more than just an attractive subject line (although that’s crucial, too). And while a classic CTA (that’s a call to action, for the uninitiated) is great, it simply isn’t enough to bring in conversions.
Email is a great way to reach your customer in myriad ways. The email can offer discounts, sales, incentives, upsells, and cross-sells to the recipient. It's also a valuable method of building and enhancing the bonds you've already forged with the customer.
Always Be Posting
Tying in with email marketing, keeping up a relevant and engaging Internet presence is excellent for your subscription model.
Your customer base needs to see that your company has a pulse. A great way to do this is by remaining fully visible by posting content often. A great way to bolster your outreach is by engaging in SEM and SEO campaigns.
You need to craft nuanced content that serves multiple audiences: one, your potential customer, and two, your existing customer base. This two-pronged approach involves singing the praises of your product or service at a general level while doubling down on the current benefits. Essentially, why has your existing customer already bought into your subscription service?
Know Your Value (And Use It)
When advertising to potential customers, you must know your value. But you should have already established this before engaging in digital marketing efforts.
What sets you apart from others in your industry? Why should the customer choose you over other alternatives? When amid the branding design process, you should always ask questions to fully flesh out your mission, goals, and brand voice.
Part of knowing your value is knowing your target audience. Again, a fundamental aspect of good marketing is knowing your customer.
If you have a firm grasp of these concepts, then you already know your value. And that’s the key to growing your brand.
But once you know your value, it's time to double down. There should be recurring information in the aforementioned emails and blog posts that should entice viewers to subscribe. Why would a customer choose your product? More specifically, what about your product or service engenders trust and reliability so that a customer would subscribe long-term?
Think of consumers who are dedicated to certain subscription-based services. Why are they that way? Maybe it’s the great UX/UI or the prior years of satisfaction with the product. Examine what makes your target audience tick and use it to your advantage.
Subscription Marketing: Your Key To Brand Growth?
Subscription marketing is highly versatile and requires adaptability to grow. After taking these strategies to heart, your new marketing campaigns should open up more possibilities for your subscription business.
When you and your digital marketer implement these new methods into your business model, your customer will be hard-pressed to ignore your efforts. Remember to invest in good email marketing, post new content often, and sing the praises of your unique product.
In the end, the conversions and sales will speak for themselves. And, hopefully, you'll acquire an army of new long-term customers.