I don’t know about you but I’ve been watching the subscription industry and how it’s grown and changed over the past few years. Subscriptions started back with deliveries of milk and eggs, grew to newspapers and magazines, and has grown to include deliveries of online newsletters, and physical boxes of makeup, clothing, books and full blown recipes. I’ve ventured once or twice into a home delivery subscription of products, but I’m particular about things so I have yet to find anything current that I really want to subscribe to. But let’s talk about the business of subscriptions, and why they’re something people enjoy and why they’re successful.
One of the great things about some of the subscription options is the joint venture opportunities they create. Yes, in some cases you’re subscribing to one specific product or brand, but many of the subscription options include a variety of items that changes with each delivery. The boxes talk about being “carefully curated” to include a mix of products to try, leaving the next step up to the recipient, they can use/share the products and move on, or they can follow up with the brands in the box and purchase additional products or more of what they got in the box. For businesses, it’s a great opportunity to build a business relationship with another company, to do cross promotions with the company and to be introduced to an audience they may not have really considered before.
Subscription deliveries create recurring revenue for companies. This is a big reason that companies want to get into the subscription business, because they’re getting consistently paid without all of the work of trying to get new clients/customers. Of course you have to have great content in your box or people won’t stay subscribed, but if you can consistently provide unique items that your audience is interested in, you can keep them as a repeat customer for many years.
Subscriptions work well because they take a lot of the work out of the customer’s life. Many people will tell you that they’re too busy to do the research into picking a recipe and shopping for the right items or finding new skincare to try or finding new books to read, and let’s be honest you can do tons of research and you may never hit on the products included in the box because there are just so many different companies in every niche and industry. Subscriptions are an easy way to introduce people to the variety, novelty, and/or something bigger/better that they’re interested in finding but don’t have the time or knowledge to know where/how to look.
There are of course challenges to being in the subscription industry, including quality of products, offering something people don’t want, not having some competitive advantage or standing out from your (many) competitors, the finding a happy middle on cost of the subscription for you and your customers, and being able to keep up with demand. I don’t think the subscription industry is going anywhere any time soon, and I think there’s still room in the industry for some quality boxes and deliveries.
Have you considered offering a subscription option, and if so how far into the consideration and/or planning are you? If you offer a subscription, what have you learned from it and where do you think the industry is headed?