Today the subscription model is mostly attributed to virtual goods, premium accounts, etc. with companies like Spotify, LinkedIn and Amazon (Amazon Premium) proposing some advantages over free use.
Why Thinking About a “retro” Product Subscription Model Makes Sense
The time has come to think a little “retro” style. India WhatsApp Number List Not everything there was before was worse than what we have now. Sometimes even the opposite. What makes the subscription model so attractive is that instead of selling one product, several are sold at the same time.
Trend towards more comfort : people have less and less time. We try to outsource or minimize all the activities that we don’t enjoy, such as cleaning, going to the supermarket or whatever.
More leeway in marketing : when you sell a subscription to a product you do your calculations differently. You can invest more because each sale generates more benefits. If it is a monthly subscription,
It Is Like a Sale of 12 Units of a Product at Once.
Better customer loyalty : the loyalty process is included in the sale of each subscription. It’s like getting a customer to buy from you repeatedly. India WhatsApp Number List . Savings in shares to increase the repurchase ratio is important. Key factors to set up a subscription model with products – case study Black socks Probably one of the best examples to carry out this idea is the Swiss company Black socks . As the name indicates, its main product is black socks. In a subscription model they have managed to sell more than 3,000,000 pairs since 1999.
1. A niche with little competition : although the world of clothing is highly competitive, no one had specialized in the sale of black socks. No one would have seen a business opportunity because focusing on what you wear on your feet while also focusing on a color would have seemed crazy to other people.
2. Frequent use by wear : men in suits. That is your main target audience. The product that wears out the most are socks. If your profession requires you to wear a suit, it is very likely that you will have little time to buy new ones and/or have better things to do. India WhatsApp Number List . Typically after a few months the socks have their first hole. With a subscription I don’t have to worry about buying new ones.
3. Economical shipping : you need a product that is light in weight and does not require a lot of space. In this case the shipping costs can be minimized. India WhatsApp Number List . Depending on your pricing policy, you could offer a product at a lower price or save your customers a significant percentage on shipping. In both cases you would benefit from adding more value to your offer.
4. Margins to Offer Discounts :
A subscription of products also gives you more maneuver on the part of suppliers. You can more quickly reach a level that gives you more bargaining power. India WhatsApp Number List . This cost reduction can easily be translated into a better price for customers while achieving better margins. In the case of Black socks, the main purchasing argument for customers is not price but comfort.
The “retro” does not return only in fashion. It is worth taking a look at past trends to see if there are possibilities to adapt them to a current context.