A subscription-based company is when consumers sign-up to receive regular delivery of particular items straight to their front door. And since consumers want simple and hassle-free experiences, there’s no surprise that there has been an increase in subscription businesses.
RazorCompany.com is a sample of one of those subscription-based businesses. They developed their product based on the need from consumers of razors and shaving products and the lack of places out there willing to deliver these items right to consumer’s doors when they need them. We’ve all run out of razors or had our razors become too dull when shaving right? That’s what RazorCompany.com aims to solve.
But starting a subscription business presents a unique set of challenges, such as attracting customers when they don’t have a physical store, and most importantly, retaining those subscribers beyond their first month of service.
Here are some tips from co-founder, Trevor Dennis on how to overcome those challenges.
Interact with your clients
“Try to interact with your clients as much as possible,” Trevor advised. He emphasized that trying to figure out what it is that your consumers like and don’t like will give you the feedback you need to improve your product and retain your customers. “Family and friends are great, but they are not as blunt as real customers and if you want to improve, real feedback is key.”
Make sure your systems work
Make sure that you have your systems working correctly. Trevor explained that at first, everyone is excited to get their website launched, but a glitch, even a small one, can turn your potential members off right from the start. “There are so many online stores, you need to make it as seamless as possible or the potential clients will move on to the next guy,” he said. So test your website and make sure your systems are working perfectly before you launch. Launching slower is better than launching quick and making a big mistake.
Pay attention to consumers needs
Acknowledging what your consumers want is critical to the success of your business and retaining your subscribers. People don’t always just want more of something for a better value. “The customer that just wants a great deal is typically the one that will just move on to the next great deal after yours and they are hard to retain as a customer.” So instead, pay attention the customers that want a quality product, along with a quality service, and make sure to look for ways to deliver and improve.
Create an affiliate program
Trevor shared that their affiliate program has been one of the very successful ways they’ve attracted new customers. Current customers can share a link to earn up to 25% commission on every order they push towards RazorCompany.com. “What’s unique about our program is that we don’t just pay on the first order a new member purchases, the affiliate gets paid out every time the order reoccurs for as long as that person is a member.” Creating something that rewards your long-term members and attracts new ones is a great way to keep and attract consumers.
Give them something exclusive
To keep receiving a box of shaving goods every month exciting, RazorCompany.com sends out promotions with every order that vary from a percentage off a new item or new, interesting information about some of their products. Each box comes with a surprise or something they haven’t received or seen before. This makes customers feel special and hook them to want to see what will come each month.
So if you are considering creating a business with a subscription model, consider the above to reach success and keep your customers happy.
About the Author
Lauren Marinigh is a Toronto-based online marketing and content development professional, who is completely addicted to traveling, puppies, and GIFs.