The Power of Subscriptions for Every Business
Do you have a billion dollar business hiding inside your company?
Asking customers to pay to join a special group of your best patrons can increase your revenue, encourage customers to buy new products and services from you, and provide a healthy boost to your cash flow. At Amazon, in exchange for an annual fee, customers get: free two-day shipping, unlimited videos & shows and books to borrow for free.
It’s a compelling offer, which is why, according to TIME Magazine, more than 10 million people have signed up for Amazon Prime. If you do the math, that makes Prime close to a billion-dollar business for Amazon. And like most subscription programs, members pay upfront, giving Amazon a big injection of positive cash flow.
Additionally, Prime memebership changes the buying behavior of the average Amazon customer. Prime customers are eager to “get their money back” by purchasing a bigger and broader array of products from Amazon. According to TIME, the average Prime customer now spends over $1,200 per year with Amazon compared to $500 the average non-Prime customer spends, almost triple.
Private member models are nothing new or unique. Many businesses are using them to sell everything from razor blades, to clothes, and beauty products. They create customer loyalty because of the investment of the fee and they are more likely to purchase additional products or services.
Getting your customers to pay to join your subscription club does require you to design a compelling offer. If executed correctly, not only will the club return a profit, it will also provide a boost to your cash flow, create customer loyalty and a ready market for additional products and services.
There are a variety of subscription models that can be applied to products and services from any industry. Contact me to explore this option for your business.
