It’s Monday at 9 am. Your boss walks into your office and calls you into a meeting room and inquires about your team’s subscription strategy to dominate the industry for the quarter. You freeze.
No matter what your goals are—generating leads, increasing customer retention, or conquering the subscription market. This plan will set you down the right path all before lunchtime. So, grab a cup of coffee, and let's get diving into this ultimate guide, shall we?
Before presenting you with the know-how to dominating the industry, let us give you a quick rundown of where the subscription market is at currently.
According to research done by Mckinsey in 2018, the subscription market has grown more than 100 per cent a year over the past five years.
The above image is self-explanatory; the B2B industry is the fastest growing business model ever since January 2017. To further dive into the B2B business model deeper, let us take a look at another graph below.
Once again, deriving from the graph above, it is evident that the SAAS sector is the fastest-growing at the beginning of January 2017.
This subscription industry is growing as years go by; it is the best time now to start to find ways to strengthen your position within the market before it gets too saturated.
Now, finally, for what you are waiting for, here are the 4 tips that you could keep on your sleeve and present to your boss right after lunch.
1. Emphasize Unique Selling Point and Quality
What makes you stand out from your competitors? Spend some time to find your unique selling point (USP). Many businesses nowadays are just too focused on selling, selling and selling that they do not evaluate their business and continuously improve their USP. Knowing your USP is one thing, projecting it to your customers to get them to want you is another. Here is an example of a company that is doing this the right way.
Everyone in the industry was selling razors that were super high tech, had 10 blades, some even promises the disappearance of your hairs forever. On the other hand, Dollar Shave, as simple as it sounds "pay 1 low monthly fee' and you will see a box of razors at your doorstep.
Their simplicity is their marketing strategy, their unique selling point.
Having a USP is not enough to propel a business to success; it will need quality as well. Subscription businesses, most of them have differing USP and qualities. This quality refers to, one less trip to the grocer, having necessities delivered to your door, or even no more the hassle of toggling between different applications and having them all in one place.
2. Emphasize Convenience
A customer's general preference for convenient goods and services have a significant impact on their purchasing decisions. Customers usually are more inclined to buy a product if it helps them save time and effort to carry out a task.
Here, Netflix does a fantastic job at portraying this.
"Watch movies anytime, anywhere."
This brings convenience to a whole new level as customers do not have to travel to a store to purchase DVDs to watch their movies. They are also not only restricted to watching movies at home, but they can now watch on the go, on their mobile.
3. Emphasize Variety
Who doesn't like variety? Variety is subscription plans' key benefit, one of the vital soul of the subscription economy.
Here is another key industry player when it comes to subscriptions, Spotify.
Spotify advertises "unlimited music", basically a massive music library where the user can play the songs that they want anytime, anywhere, WITHOUT internet. (for a dirt-cheap amount)
This is what sets them apart from other pay-per-song product.
Spotify offers a wide variety for the lowest price. Variety is a unique quality of nearly all subscription business. However, as for SAAS products, they may not be varied on the products, but you can advertise on the variety of properties; such as no hardware or external software needed and so on.
There you go, the 3 things that go into the making of you becoming the next subscription tycoon. Now, you can confidently go to your boss after lunch and tell him/her that you can make the business soar to an unimaginable height.
Psst...don't forget us when you succeed.