159: 5 Simple Steps to Adding a Subscription to Your Product-Based Business
Episode description
Do you have a product-based business? Are you selling products via an Etsy store, in a pop-up shop or a retail store? Are you selling one-off products online? Adding a subscription box to your existing business is a no-brainer and can offer you so many benefits!
Adding a subscription box provides:
- A stable, predictable revenue stream - recurring payments benefit your business in so many ways, including stabilizing your cash flow.
- Customer loyalty - subscribers have committed to regularly purchasing products from you.
- Increased lifetime value (LTV) - do you know the LTV of your customers? My subscribers stay for an average of 18 months, generating thousands of dollars of revenue each.
- Opportunities for cross-selling and upselling - pair your box items with additional one-off items from your shop.
- Scalability - packing and shipping 500 of the same thing is much more efficient than 500 different orders.
Have I convinced you to add a subscription box to your business? I have 5 simple steps to follow to make it happen.
- Identify your best customers:
- Who are they?
- How often do they shop with you?
- Take a look at your top 20 customers and dial into who they are.
- Identify your best-sellers:
- What categories are your best sellers?
- What do people buy from you repeatedly?
- What are people asking for more of?
- Set your pricing structure:
- What is your average order value (AOV)?
- What is the AOV of your top 100 customers?
- Price your subscription box in that range.
- Create exclusivity and scarcity:
- What are the benefits of being a subscriber?
- Make items only available in the box.
- Make them only available by subscription.
- Create FOMO with your customer base - make them want to be part of something exclusive.
- Create a great user experience:
- Are your website and the checkout process clear and easy to follow?
- Make it easy for people to update or cancel their subscriptions.
- Provide a higher level of customer service - remember your subscribers are the VIPs of your business.
A bonus piece of advice, which is really the best piece of advice, is to talk about your subscription box a LOT. If you want to create a business that is 75% recurring revenue instead of depending on one-off sales, you’ve got to make it the main thing in your business. And that means talking about it… a lot!
Join me for this episode to learn how having a subscription box can change the game for your business. Predictable inventory, better cash flow, monthly recurring revenue, and more. Follow 5 simple steps to get started today!
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Are you ready for Launch Your Box? Our complete training program walks you step by step through how to start, launch, and grow your subscription box business. Join today!