In the US, more and more online store buyers are switching to the subscription model: last year alone, their number grew by 15%. Russian e-commerce is just getting started, but no one doubts that the trend, as always, will come to us a little later. So let’s get ready – get acquainted with subscriptions.
The growing popularity
of subscriptions is a natural process, and it is easy to explain. First of all, it is convenient for customers: instead of buying the same thing once a month, they simply pay money and receive the product directly korea mobile phone number data to their home. Those who have already
appreciated the benefits of subscriptions do not limit themselves to one: more than half of online store buyers have at least two.
For retailers, the benefits of subscriptions are obvious:
Savings on attracting new customers. The standard model, which is based on conversion, means that you have to spend a lot of effort and money on attracting customers. First, you turn a visitor into a buyer, and then work hard again so that he becomes a regular. The subscription model means that your customer immediately becomes a regular customer, and provides a stable income.
More accurate forecasts. To forecast income, traditional businesses have to rely on a number of assumptions and use a lot of analytics. The subscription model allows you to estimate income much more easily: you take the total number of subscribers, subtract the cancellations, and multiply by the subscription cost.
Optimized inventory management
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Imagine: you bought a product in advance, but it does not sell as well as expected. Or, on the contrary, a product suddenly goes viral, and its stock is running out, and you still have a thousand omnichannel customer experience strategy for saaS enterprises customers who want to order it. With a subscription, these problems disappear: you know exactly how many subscribers you have and how much product you need – you can plan your purchases more accurately and virtually eliminate leftovers.
And the best thing is that today, retailers have everything they need to implement a subscription model. They have many successful examples of companies and opportunities to use their experience in their niche.
Online books
In general, subscription-based models are ideal for two types data on of businesses: those who sell content, and regular services. We will return to the latter soon, but for now let’s talk about content in ecommerce – we are talking, of course, about the online book market.