What is a subscription model business and how can it boost your sales?

Expand your customer base, increase sales, and learn how Evri can help with your subscription services.

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A subscription model business in e-commerce

No matter your industry, you’ve probably seen the explosion of online subscription services lately. It’s easy for customers to sign up, and this trend is set to keep growing - especially in e-commerce. Now’s the perfect time for your business to dive into the subscription model!

Keep reading to discover what a subscription service is, why it’s gaining traction, and how you can successfully introduce subscriptions into your business.

What is a subscription business?

A subscription business offers customers a product or service they can enjoy regularly, without needing to place repeated orders. It's a convenient option where customers pay over time - weekly, monthly, or yearly - making it feel more affordable than a one-time purchase.

For businesses, this model provides a steady income and makes it easier to manage stock and supply. For example, if you’re delivering a monthly magazine, you’ll know exactly how many copies to produce and deliver each month, ensuring customers always get their order.

Retaining customers after a subscription ends

Customers might decide to cancel their subscription or not renew after a set period, like 12 months. This could be because they no longer need the service or have found another option.

It’s important to give them a great experience so they’re happy to come back if they change their mind. Even if they cancel, leaving a positive impression can make them more likely to sign up again in the future.

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Why you should set up a subscription model strategy

A subscription model is a smart, flexible way to grow your business. It’s profitable, easy to set up on e-commerce platforms, and a great way to keep customers coming back. With just one sign-up, customers get their product or service delivered regularly, without the hassle of reordering. This convenience means they won’t run out of what they need, and deliveries go straight to their door. The ease of this service builds loyalty, while the flexibility to pause offers customers control over their subscription.

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Examples of subscription marketing

It’s likely you’re familiar with subscription services, and you may already be a subscriber to some of the most well-known giants like Amazon Prime, Netflix, or Spotify. Other examples of a subscription model business include:

  • Amazon Subscribe and Save
  • Smol
  • Gousto
  • Harry’s
  • Bloom and Wild
  • Beer52
  • Pact Coffee
  • The Pot Gang

Of course, plenty of other companies make use of this model, including small businesses that have successfully implemented their subscription marketing strategy.

But why exactly has the subscription model business proven to be so popular?

Types of subscription marketing strategies

When it comes to setting up your own subscription marketing strategy, we recommend the following tried and tested approaches. You can combine parts or both models together to create a subscription strategy that works best for your business.

1

Consumption model

The customer pays for your product or service based on how much they will use it. For example, a food delivery box once a week.

2

Bundle model

The customer pays for your product or service and gets a bundle of other handy and related items, services, or member benefits. For example, a wellness subscription to access online webinars and yoga classes, but customers also receive a box of essential oils, herbal teas and health snacks each month and discounts on partnering products.

How can Evri help you master a subscription model business?

So, now you know exactly what subscription marketing is and how you can use it to grow your business. If your new subscription service involves delivering physical products, our great value Courier service can help you keep costs low! Here at Evri, we’re experts in getting your parcels to your customers as quickly and cheaply as possible. Not only that, but when you choose us as your delivery service you get all these extra benefits:

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Made convenient for you

Send 7 days a week from one of our 16,000+ ParcelShops or Lockers, or arrange a Courier collection from your home or workplace

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Global reach

We not only deliver to 99% of the UK mainland but also to 200+ international countries and territories from just £6.08

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Regular tracking updates

Get end-to-end tracking via our website or App

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Parcel divert options

If your customer isn’t available, they can easily divert the parcel to a chosen neighbour, safe place, or collect from one of our 9,000+ ParcelShops when it suits them

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Seamless delivery experience

Your customers get a 1-hour delivery window, 3 delivery attempts, diversion options and deliveries 7 days a week

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Photo confirmation

Your customer will receive photo confirmation when their parcel has been delivered to a ‘Safe Place’ for peace of mind

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£20 FREE parcel cover*

*excludes Postable parcels

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Easy marketplace integrations

Send multiple parcels at once using our Bulk Send tool. Link your Evri account with major marketplaces like eBay, Amazon, Etsy, Shopify, and more. We’ll also update your orders automatically with tracking information to keep your customers in the loop.

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How to create a subscription marketing strategy

Now that you know what the subscription model business is, and reasons why you should invest in it, you can now consider how you can create one in your marketing strategy.

Here are our recommended steps to get started:

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1. Research your customers

First off, it’s crucial to understand who your customers are and what they’re after.

If you’re already established, you'll likely have a good idea of this. But if you’re just starting out, researching your target audience is key. Find out who’s interested in your products and what they expect from a subscription service.

For example, if you have a small candle-making business, ask your loyal customers what keeps them coming back and how you can improve their experience. Would they sign up for a subscription? How much would they pay? What would they want included? This will help you see if a subscription service is a good fit.

2. Analyse your competition

Once you’ve got a good grasp of your customer base, take a look at how your direct competitors are reaching them.

This will give you important insights:

  • Who they are
  • Their subscription model
  • The price, contents, and frequency of their service

By understanding these details, you can learn from your competitors and spot any gaps in the market. Maybe you can offer a more affordable option or let customers choose how often they receive deliveries. Knowing what your competitors are doing helps you tailor your subscription strategy to draw in more or different customers.

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3. Make yourself easy to find

When you’re set to roll out your subscription strategy, make sure your business is easy for customers to find. This might mean boosting your presence on online marketplaces, marketing on social media, or creating a website. The easier it is for customers to find you, the better your subscription service will do.

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4. Make the process of choosing a subscription seamless

It’s one thing to make your business easy to find, but it’s just as crucial to keep the sign-up process simple. When customers find you, they should be able to subscribe to your product or service in just a few quick steps.

5. Ask for regular feedback

Lastly, don’t forget to ask your customers for feedback on your subscription service. They’re the ones using it, so they’ll know where you can improve. Keep the feedback process simple, just like your sign-up.

If a customer cancels, find out why and consider offering incentives like discounts or bonuses to keep them on board.

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Ready to start your subscription model business?

Sign up with Evri today to start sending parcels to your customers straight away. Discover all the tools and resources you can use with your Standard Account.

If you're regularly sending lots of parcels, why not check out our full range of Business Account options and see which could be the right fit for your needs?