Uncovering The Facts About Subscription Ecosystem

If you are planning to enter the subscription business market, many people would have already told you that the market is replete with competitors, it is too difficult to establish your brand name and a lot more things. Some of these presumptions come out to be true and some are nothing but myths. So, it is pretty confusing to understand what is the right time and the right point to start your subscription business.

There are indeed many types of subscription businesses already thriving in the market. Subscribers have so many choices to get subscriptions for certain services or products. Even if you succeed in bringing enough customers on board, customer retention is the next challenge that you must overcome to maintain the flow of recurring revenue streams.

Despite all these problems, entrepreneurs can find entry points for themselves. All that is needed is the business acumen to turn challenges into opportunities. In this article, you are going to explore various facts about the subscription ecosystem and find the point when you can enter the subscription business market.

Also Read: The Challenges Of The Recurring Revenue And The SaaS Business’ Growth

Who Should Opt for Subscription Business Model?

Subscriptions can fit any business, you will read and listen to such suggestions when you think of adopting a subscription business model. It is actually true that the subscription business model is not limited to the SaaS companies anymore. Many industries that one could not even imagine are offering subscriptions. From SMBs to large enterprises that run supply chains beyond borders are part of the subscription ecosystem. Here, you will find small companies as well as subscription business giants.

Still, you need to give it a thought whether subscriptions are MADE FOR YOUR BUSINESS OR NOT. The first parameter that can help you decide if subscriptions suit your business plan is the recurring need of the customers. If you are going to offer products or services that people will need regularly, then you are good to go. It is better to discuss your business plan with experts. Many subscriptions management platforms offer free consultancy, you can book an appointment with some experts to discuss the feasibility of your subscription business plan.

Also Read: How Automated Recurring Invoicing Management Empowers Global Subscription Market

Market Research

Just like any other business, entrepreneurs who want to enter the subscription business market need to research the subscription business model. Passion is the strength as well the weakness of the entrepreneur. Entrepreneurs are so passionate that sometimes they do not dedicate enough time to research the subscription business model and the market. Some entrepreneurs who aim to start the subscription business fail to even target the right customers.

Entrepreneurs should communicate with the customers to know customer demands.
Study the sales and purchase data of the recent past that can help in formulating a workable business strategy.
Compare the various subscription management software that people are using in the market so that the right platform can be found for the business.

Extensive research of the subscription businesses can help in finding the points to enter the market.

Competitors in the Market

Competitive analysis is usually considered part of market research. However, it is quite an extensive concept and you cannot start your subscription business if you have not analysed the strengths, weaknesses, and marketing standing of your competitors. When it comes to competitive analysis to find the entry point in the subscription business market, there can be two scenarios:

You have competitors in the market who can give you cutthroat competition.
You have a unique subscription business plan and find no competitors.

In the first case, you need to ask yourself one question. When there are so many people offering them the same thing, why would customers come to you? Keep in mind, offering cheaper rates and freemiums can help, but there are many other factors beyond this. You can create differences based on the subscription plans, subscription models, and incentives for the customers etc.

However, if you have no competitors, then the risk is higher. It is better to double-check everything before you enter the market when there are no competitors.

Effective Marketing Strategy

If you are going to enter the subscription market as a SaaS business entrepreneur, then your marketing strategy will be different from the usual business marketing strategies. Why?

Because your customer cannot touch, feel, or see your product or services. Moreover, in the digital realm, it is time for inbound marketing. Inbound marketing is based on influencing the customers to come on board with effective and relevant content. The best source of marketing for saas subscription business entrepreneurs can be:

Email marketing
Social media
Webinars

Marketing is a crucial point when you are about to launch your subscription-based business. When you implement your marketing strategy, you will need to observe certain KPIs to know if your strategy is working as per the expectations or not. These key performance indicators include lead conversion rate, customer lifetime value (CLV), and customer churn. Marketing set the ground for any entrepreneurial activity so, dedicate enough time and resources for it.

Also Read: Email Marketing is Inevitable for Subscription-Based Clients—Connect & Grow with SubscriptionFlow-Mailchimp Integration

Some Innovative Subscription Business Ideas for Entrepreneurs

The subscription business economy is showing improvement in its performance with every passing day. Experts predict, in near future, a major chunk of businesses will shift to the subscription business model. If you are up for finding some entry point for yourself in this market, then you need to think out of the box. Innovation is the first tool that you ought to have. Team SubscriptionFlow has enlisted some of the subscription business ideas for entrepreneurs who want to start their business based on recurring billing.

Vitamins Subscriptions

Recently, COVID-19 has made even those people health-conscious who never had health as their priority. These days people have become more careful about their health. People who are interested in earning recurring revenue can start their business to offer subscriptions for different vitamins. For instance, there are many regions where sunlight is not all time available or people spend too much time in offices that their Vitamin D intake gets disturbed. They look for pharmacies and stores that can offer them regular intake of Vitamin D. The scope of the business is wide. You can start with offering Vitamins subscriptions and move towards insulin shots subscriptions etc.

Grandparent Care Subscriptions

Today the lifestyles have changed in a way that people do not even find time for themselves, let alone the grandparents and children. Though, people should spare some time for their grandparents, what to do when they need all-time care? That’s the point where you can enter the subscription business market. Start your business by offering subscriptions for elderly care services. You can even offer subscription plans based on the hours of the services.

Spa Day Subscriptions

Nothing can be more relaxing than a spa day after long working hours. The market is already there, you just need to make an entry with different subscription plans for spa services. From some basic services to complete therapies, various services can be offered that people need recurrently.

Also Read: What to Expect in 2021 and Beyond? Top Predictions For the Subscription Market and Subscription Management

Entry points to all business markets involve risks. You need proper planning and a well-thought business strategy to enter the subscription business market. You can minimize the chances of failure if you onboard SubscriptionFlow for the management of subscriptions for your nascent business. Whether it is a small business plan or a large business with a huge investment, SubscriptionFlow is subscription management software for small businesses and large enterprises that can help in turning your plan into a success.