Subscription Club

Is it worth starting a subscription club for my business?

Postado por: em 14/06/2018

Ever since e-commerce became popular, it is not hard to find people who prefer to make their purchases over the internet. Regardless of the product, those who buy online are searching for variety of prices, convenience to buy at any time and the comfort to have it delivered to their home.

Who wouldn’t want all these advantages? Therefore, digital retailing is not a fad, but the future of Brazilians’ buying habit, who every year find out about the benefits of buying through a computer, tablet or phone.

Monthly subscription clubs have turned into a reality for books, makeup, wine and even natural products’ companies. A trend that has come to stay. The service only grows and reinforces the fact that the Brazilian market has changed the way companies do business and win customers. The focus is on convenience, quality and customer retention. However, what would a subscription club be?

In general terms, they are companies that sell products or services on a recurring basis through monthly payments. In order to be able to have access to it, consumers must subscribe to a package per month, per semester or per year. The best examples of this new business model are Netflix and Spotify, popular audio-visual and music streaming services respectively that have revolutionized the entertainment industry.

Both allow the user to download the app via mobile phone (or access through the website) and consume movies, series or music without using the memory of your device, as well as preventing illegal means of downloading and sharing copyrighted content. Spotify, for example, offers free service and, if you want to access the ad-free version, they offer monthly subscription plans that cost no more than R$ 30.

The Brazilian example of subscription clubs is TAG Books, curating service where consumers pay a monthly fee and have exclusive top-quality books delivered to their home. Unlike traditional online stores, subscription websites have unique features that go far beyond simply delivering products to their consumers’ homes. The greatest benefit is that the service is customized, taking the real needs of their customer into account, operating according to the connected lifestyle we have been currently experiencing.

Is your company ready to meet the requirements of an increasingly savvy consumer willing to pay for quality service?

Check out the main features of a successful subscription club:

  • Quality: Today’s consumer wants to get high quality products;
  • Convenience: Today’s consumer wants the convenience of having products delivered to their home;
    • Exclusivity: Today’s consumer wants more added value to the product or service, knowing that they can trust their source;
  • Recurrence: Today’s consumer is willing to pay for the convenience of having the monthly subscription automatically debited from their bank account, have it paid on their credit card or even via deposit slips.

Subscription clubs have become beneficial not only for consumers who are provided with better customer service, exclusive products and convenience, but also for those who work in this business model.

Check out the advantages of starting a subscription club for your business:

Easy planning: With recurring revenue and a predictable inventory, it is easier to perform financial management;

Customer retention: During the period that the customers subscribe to receive your product you are more likely to create a long-term relationship with them, and you can even turn them into great promoters of your brand;

Reducing operational costs: By knowing the number of subscribers you have, it is possible to have a better inventory control in addition to optimizing your distribution logistics, therefore reducing operational costs and waste.

Undoubtedly, subscription clubs are already far beyond having magazines or newspapers delivered as they innovate and include more and more services and products. Certainly, your business can start thinking differently in order to offer quality, convenience, exclusivity and recurrence to your customer. If your company is not yet inserted in the digital market, it is worth assessing the possibility of coming out ahead and standing out in your segment, always aiming at better results for your company.

Stay on top of everything about recurring subscription clubs on Rits Blog. Please feel free to request a quote and send us your project.