In recent years, we have seen the constant growth of an interesting and innovative business model. Subscription boxes are starting to become the new face of e-Commerce in a market that loves personalized products as much as it loves online shopping. It only makes sense that this way of buying would become as popular as it has. Many different businesses and companies are using this model to offer their products and services, and so far, it has proven successful.
However, before we decide if such a model could work for us, we need to know what exactly subscription boxes are and how they work. Also, we need to understand what the consumers’ experience has been with these boxes. Only then we can start looking for ways on which we could apply this business model in our company.
Simply put, subscription boxes are packages that subscribers receive every month or every given period. Such boxes include different products, usually under a specific category or niche, such as clothes, makeup, snacks, etcetera. Whether they work under a monthly fee or one-time-charges, the market of subscriptions is a wide one, and it just keeps growing.
One of the reasons behind the success of subscription boxes is the personalized and handcrafted value they offer. The design and attention to detail of the boxes is appealing and attractive. Plus, the contents are as useful, interesting, and exciting for the consumers. Besides, it takes advantage of the convenience and simplicity that e-Commerce has brought along.
Another reason behind the overwhelming growth and success of the subscription box model is the personalization of the items. Every person has different passions, interests, and hobbies. Finding a specific niche to target a service provides a memorable customer experience. This allows companies to maximize their retention while building a valuable relationship with its subscribers.
The surprise factor plays an important role in the success of subscriptions, particularly more when the surprises come every month. The novelty of receiving or being able to try new products makes the experience much more remarkable, too. This is there are more than 5,000 subscription companies already using this model.
Many companies have focused on the model of subscriptions specifically. However, many existing companies, including Amazon and Wal-Mart, are looking for ways to apply this model, too. Therefore, there is no reason why you shouldn’t consider offering a subscription box to your existing or potential clients already.
Before we start thinking of the design of our box or the message it will include, we need to consider some other aspects. First of all, you need to think of who your clients are, identify your niche, and learn about your competitors. Then, think about the pricing, its content, and work on a prototype. We must keep in mind that, in the business of subscription boxes, personalization is a must. Before you launch your subscription box, build excitement and anticipation, and market the box appropriately.
Finding and keeping subscribers might be hard at first. Yet, remember that the advantages of this model are plenty, and most likely, both your company and your customers will benefit from this way of doing business.