Survival of the Fittest: 3 Reasons Your Subscription Business Didn’t Work

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The e-commerce and retail landscape has changed drastically in a short period of time — and it will only continue. In fact, it is projected that 91 percent of U.S. consumers will be online shoppers by 2023. The reality is digital connection and ease of e-commerce sales are the future. Organizations need to get on board or get left behind.

Companies seeking to adopt a digital presence, and build a connection to their modern brand DNA, need to look no further than a subscription-based business model. Subscriptions are the future of commerce. The brands that focus on building these out strategically and place a focus on experience will win in the end.

In fact, nearly 48 percent of people say it’s easier to sign up for a subscription plan than to shop in a store. And more than 80 percent of U.S. consumers are active subscribers, accounting for more than 20 percent of e-commerce total sales. These are just some of the several key findings from the State of Subscription Commerce Economy Annual Report, put out by the Subscription Trade Association (SUBTA).

Related: 5 Tips for Growing Your Subscription Business

With this rising trend comes a unique opportunity for organizations to embrace the subscription-based model. But with so much success, there has also been a great deal of failure. Here are three reasons why your subscription business didn’t work — and how to fix it.

1. Lack of focus on the customer experience

Customer preference has moved to a focus on meaningful relationships with brands. After all, customers want to feel like they are a part of something and connect to a story. Businesses should leverage this desire for belonging by creating access to unique products through subscriptions.

Subscription-based businesses have an upper hand when it comes to customer experience with multiple touch points along the customer lifecycle. But many often fall short, neglecting the importance of understanding customer needs and ensuring results.

Here are a few ways to put focus back on the customer experience:

  • Understand what your customers are asking. Rather than utilizing scripted responses, work to understand the questions and concerns of your audience and use that data to better fuel your experience model.

  • Respond everywhere. In the age of increased connectivity, it’s important to monitor all communication channels where your audience may ask questions (social media, email, web forms and so on).

  • Utilize the first-party data you have to better understand your consumer’s behaviors and personalize their offering. The more personal you get, the more memorable the experience will be.

  • Prioritize training. A significant portion of your focus should be on customer service training and tips to ensure a smooth customer experience every time.

2. Neglecting your retention strategy

Focusing on customer experience can also help you build out your customer retention strategy. This is crucial for subscription-based models since they thrive on repeat customers.

Customer retention must be one of your key g

Source: Entrepreneur.com

Read more:
Survival of the Fittest: 3 Reasons Your Subscription Business Didn’t Work

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