Many subscription services have been launched recently, and some commentators have suggested that subscription fatigue is setting in. However, if you can get it right, a subscription service will generate recurring revenue and help form a close relationship with your customers.

What kinds of products do subscriptions work best for?

Subscriptions are typically used for consumables, i.e. things which are used regularly e.g.

Fresh food
Food supplements
Dog food
Health and beauty products

These items are things which are used on a daily or regular basis and the customer is shopping for frequently. Getting products on a subscription saves the customer time.

Steps to launch a subscription business

Step 1. Understand your customer

To launch a successful subscription business, you need to understand your consumer and consider whether there are products they are currently getting elsewhere.

Think about how you can add value to the consumer. Are there certain products which customers buy regularly?
Are there products that would complement your current range that could be sold on a subscription basis? For example, could you start a pet food subscription offer if you sell pet accessories?
Why should the consumer buy from you?

Step 2. Iron out your offer

Details to consider are:

What frequencies will you offer? E.g. Weekly, monthly, quarterly
Selection options. Is it a fixed offer, or can the customer selection options

Step 2. Choose a platform

You will need a platform to run your subscription service. There are 30+ apps on Shopify (of which Qpilot is one option). Compare the app's functionality against your proposed subscription offering and choose the one that bests fits your requirements.

How to promote a subscription service

Your offer should have a dedicated page on your site highlighting the features and benefits of your subscription scheme. Include:

Subscription contents, i.e. what you get
Subscription benefits. Why this helps the customer and the value it provides
Highlight benefits such as environmental impact
Subscription conditions. How will payment be taken, and how can the subscription be cancelled

To promote your subscription scheme, start by promoting the scheme to customers who are already frequently buying from your site.

Qpilot recommends giving a discount of no more than 10%. Pricing too low will leave less room for discounting in future. For example, You might want to run a sales event over a holiday weekend to drive additional sales

Improving performance

Understand your customers

Subscriptions can be very profitable as customers buy for several months before cancelling. Ask customers why they sign up and leave the programme to improve performance. By understanding why people leave, you can change your programme to improve performance.

Reducing churn

There are two types of churn