Generate Sales for Subscription Business
New year will be very important for the subscription economy. There is one thing we've learned in 2020 that more and more traditional product-based companies such as Adobe and Caterpillar are adopting the subscription business model.
In today's fast-paced subscription market, customers are regularly searching for the latest products or services. The customers want to get their hands on the updated version of your product or service, whether you're selling digital products, SaaS, or traditional services. This is one reason why many product-based companies are continually adapting the subscription & recurring business model.
Given how well subscription-based companies have done in the past ten years, they're growing nine to ten times quicker than the average company on the S&P 500 index. For example, let us take a look at the number of Netflix paying streaming subscribers worldwide from 3rd quarter 2011 to 1st quarter 2020.
As you can see, there is a humongous 29900% growth in only nine years, from half a million in Q3 2011 to more than 150 million active paid subscribers in the Q1 of 2020. The subscription business is on the rise and will continue to grow in the future.
If you own a Subscription or Recurring Business and want to increase your sales, then this is the article for you. Here we are going to cover the essential tips that can help you generate sales for your Subscription Business.
How to Increase Sales of your Subscription Products and Services
Subscription Business model is becoming highly-competitive and challenging day-by-day, every month you'll see a new subscription-based product or service getting launched in the market. The only way a subscription business model can be successful is to fulfill one of two essential criteria.
1). It's an absolute necessity – For Businesses, CRM is an absolute necessity; Salesforce is a good example. It's an American cloud-based CRM company.
2). It has unmatched attractiveness – Netflix is a prime example. It might not have an absolute necessity, but people will eventually pay to join or continue with the service even if they are not using it.
Is your product or service matches any of these two criteria? If yes, then this article is for you. As long as what you are offering is in demand and solves your target market's problem, the customers will pay for the subscription. We've made a list of essential things you should focus on before launching your subscription business.
1). Supply & Demand – Both are important for the subscription economy because they impact the prices, competition, and services within the economy.
2). Product Market – Too many subscription businesses create their model on unnecessary ideas and then struggle to find or attract customers.
3). Right Pricing Model – Pricing helps in determining sales, returns, competition, product or service images, and a ton of things. Get this right, and your product is guaranteed to sell more.
Coming back to our main topic, how to generate more sales for your subscription business? Here are some of the best ways that you can use to boost your subscription sales.
Try Different Marketing Source
One of the biggest mistakes that I see most of the subscription business make is that they only have one source of leads. It's just from one marketing source through cold calls or paid ads. And when the company only has one lead or sales source, it becomes vulnerable because if that single source ever dries up, you're doomed.
So don't ever settle for just one lead source. What I recommend is that you have a couple of marketing strategies for different platforms. Maybe three to five reliable lead sources that are slowly and consistently bringing in leads.
Because what that does is, even if it's just a couple of leads a month from each source, that's a lot of leads when you multiply it by five different sources.
Some of the popular marketing sources are search engine marketing, social media marketing, email marketing, content marketing, brand marketing, influencer marketing, and traditional marketing.
Create & Share Valuable Content Consistently
Content is one of the best ways to build a relationship with your prospects, and it's like a separate entity of your subscription business. But, one of the common challenges is how to create valuable content? What counts as quality content? Let me tell you how you can create and share relevant content with your audiences.
1. FAQs – Think about the most commonly asked questions in your industry. Note down each topic and start creating content that answers the user queries. To find these frequently asked questions, you need to get involved in your industry's online communities. Take a look at blogs related to a subscription business, join forums, check Reddit, Quora, or YouTube there's plenty of sources from where you can collect these common questions, convert them into a blog post and publish on your website.
2. How To's – If you've ever helped your friend download a file from the internet or fix your home's slow computer, you already have an idea and structure of "How to's" writing. Following the same process, you can create "how-to" articles related to your product or industry; all you need to do is research, address your audience's specific needs, select a topic, and draft content.
3. Product or Service Reviews – Product or service reviews can help boost your brand's image. But make sure the reviews are honest, and they should come from an independent author.
Give your Prospects 3 Options in your Sales Proposals
You can add as many on the sales proposals you want, but three are the most commonly used pricing proposals. Use proposals with three options ranging from the least expensive option with the lowest added value to the premium option with massive added value. By doing this, you are allowing your prospects to choose the best option that satisfies their needs. When you offer your customer a couple of pricing choices, you are reframing the customer's mind to start comparing based on a product's worth rather than a price.
Create Case Studies
A case study is a method of developing a complete understanding of a process, program, event, or activity. Create a client case study, there is nothing more compelling to a prospect than an example of what you have achieved in the past. The case studies focus on the results you have created with your clients, not on the deliverables, not on what you did but on what you accomplished for the client. Case studies are a great way to convert a lead into sales; it is a way to capture the quality and uniqueness of your products or services.
Testimonials are one of the most effective ways to not only generate more sales for your subscription business but also build trust, create credibility, and improve your brand's image. It would be best if you asked your clients who had a great experience while using your product or service to give feedback, and this can prove that you've customers in the first place, and secondly, your product is solving people's problems.
Most of the people read online reviews and trust other consumers over businesses before buying anything from them, and for a good reason. Make sure you've got the testimonials from real clients to build trust and create more credibility in front of your prospect.
Which of these ideas did you find most useful? Apply these strategies on your Subscription Business and see what works best then stick with that strategy as long as you are getting more sales. Remember one thing, selling more does not mean selling harder, it means selling smarter.