The subscription economy is growing rapidly, and SMEs are well-positioned to take advantage of this trend. Subscription models offer a number of benefits for SMEs, including recurring revenue, customer loyalty, and predictable cash flow. Here are five ways that SMEs can win in the subscription economy:
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Offer a valuable subscription product or service
The first step to success in the subscription economy is to offer a subscription product or service that is truly valuable to your customers. This means offering something that is unique, convenient and solves a real problem.
For example, a subscription box company might offer a box of high-quality snacks delivered to customers’ doors each month. Or, a software company might offer a subscription service that provides customers with access to the latest and greatest software tools.
When choosing a subscription product or service to offer, it is important to consider your target market and their needs. What are their pain points? What problems are they trying to solve? Once you understand your target market, you can develop a subscription product or service that is specifically tailored to their needs.
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Make it easy for customers to sign up and manage their subscriptions
The subscription process should be as easy and convenient as possible for customers. This means having a clear and concise sign-up process, as well as a user-friendly dashboard where customers can manage their subscriptions.
It is also important to offer a variety of payment options, such as credit card, debit card, and PayPal. This will make it easier for customers to sign up for and manage their subscriptions, regardless of their preferred payment method.
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Provide excellent customer support
Customer support is essential for any business, but it is especially important for businesses that offer subscription products or services. Customers need to know that they can rely on your business to provide them with the support they need if they have any problems with their subscriptions.
Make sure that your customer support team is responsive and knowledgeable. They should be able to quickly and efficiently resolve any issues that customers may have.
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Use data to personalize your subscriptions
The subscription economy is all about data. By collecting and analyzing data about your customers, you can gain insights into their needs and preferences. This information can then be used to personalize your subscriptions and offer your customers a more tailored experience.
For example, a subscription box company might use data to personalize the contents of each box based on the customer’s past purchases. Or, a software company might use data to recommend new features and tools to customers based on their usage patterns.
By personalizing your subscriptions, you can show your customers that you value their business and that you are committed to providing them with the best possible experience.
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Monetize your subscription data
In addition to using data to personalize your subscriptions, you can also use it to monetize your subscription business. There are a number of ways to do this, such as selling your data to third-party advertisers or using it to develop new products and services.
For example, a subscription box company might sell its data to food manufacturers who want to target their products to specific demographics. Or, a software company might use its data to develop new features and tools that are tailored to the needs of its most loyal customers.
By monetizing your subscription data, you can generate additional revenue and grow your business even further.
Case studies of successful SMEs in the subscription economy
Here are a few case studies of successful SMEs that have thrived in the subscription economy:
- Dollar Shave Club: Dollar Shave Club is a subscription service that delivers razors and shaving cream to customers’ doors each month. The company has been very successful, with over 5 million subscribers worldwide.
- Birchbox: Birchbox is a subscription service that delivers beauty products to customers’ doors each month. The company has over 4 million subscribers worldwide.
- MasterClass: MasterClass is a subscription service that offers online video courses taught by world-renowned experts. The company has over 1 million subscribers worldwide.
- Wix: Wix is a subscription service that offers website builders and other web development tools. The company has over 5 million subscribers worldwide.
- Canva: Canva is a subscription service that offers graphic design tools and templates. The company has over 60 million subscribers worldwide.
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These case studies show that it is possible for SMEs to be successful in the subscription economy. By following the tips above, SMEs can develop and offer valuable subscription products or services, make it easy for customers to sign up and manage their subscriptions, provide excellent customer support, use data to personalize their subscriptions, and monetize their subscription data.
Conclusion
The subscription economy is a rapidly growing market, and SMEs are well-positioned to take advantage of this trend. By following the tips above, SMEs can develop and offer valuable subscription products or services, make it easy for customers to sign up and manage their subscriptions, provide excellent customer support, use data to personalize their subscriptions, and monetize their subscription data.
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This article was first published on 6th October 2023 and updated on October 10th, 2023 at 9:33 am
nnaemeka-emmanuel
Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.
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