24 October 2017
Community via subscription
Today, several webshops and retailers use subscription based earnings models—and this is well received by the consumers. Subscription solutions have become a popular way of shopping among many consumers because their need for convenience and excitement in an otherwise busy and hectic every day life is satisfied in this way. There is a huge potential in subscription solutions for your company since the consumers create a sense of belonging to your brand through subscriptions which is only getting stronger every day.
Dear customer – Let’s stay in touch
Subscriptions are not a new phenomenon – we have known it for a long time from the media and publishing industry. However, the solutions are no longer reserved for certain industries. As a result, it was one of the trends which Hesehus was inspired by when we visited the largest retail conference of the year in January Retail’s BIG Show 2017. More and more companies have cracked the code on how they can satisfy the consumers’ needs through a subscription based business model in which products and services are created to satisfy the customer continuously.
The subscription solutions are numerous and vary according to the product or service which the company offers. What is identical for all solutions is that the consumers develop a sense of belonging to the brand over a period of time which is difficult to break. A sense of belonging which can lead to communities between the consumers who all have the one thing in common that they are part of the same “brand” family.
Date fragrances before marrying them
Scentbird is one of the companies that have become successful with a subscription based earnings model. The concept is simply to provide the consumers with the possibility of trying various perfumes before they decide on which one to buy. Every month, the consumers can choose a new scent which is provided in an 8 ml. dispenser – one month’s consumption – for only $ 14.95. In this way, the consumers avoid having to spend much money on a perfume which they will get tired of after a while or no longer like. The consumers love Scentbird and it has created a huge “hype” on the social media where the consumers are happy to share their excitement and show others what the little bird has brought them.
Rapha - it's a great ride
Another type of subscriptions can be found in the company Rapha which has developed from only selling cycling equipment to be founded on a cycling club today (Rapha Cycling Club). For DKK 1250 a year, Rapha offers its customers a lot of options which can be used all over the world. The concept is based on a global community where cyclists worldwide can share their passion for the sport – whether it comes to training, competition or relaxation with like-minded people in Rapha's clubhouses. With this type of subscription scheme, Rapha provides its customers with the opportunity to become part of an international community with advantageous services in the clubhouses such as free coffee, oceans of events as well as the opportunity to borrow a bike – no matter where in the world they are.
Customer Success that provides good publicity – again and again
The success behind subscriptions lies in the satisfaction which the company provides to the consumer time and again. Where the traditional earnings model is based on purchases which might/might not be repeated, this earnings model is based on repeated purchases and thus repeated satisfaction of the consumers’ needs.
Through a continuous consumption of the company’s products, the brand becomes part of the consumers’ lives and in this way an essential part of their day-to-day living. They build a loyalty to the brand and will soon function as ambassadors who again and again tell others about their good experiences and invite them to become part of the community.
Code word ”customer knowledge”
The digitalisation has provided you with the opportunity to better understand your customer’s needs and thus create a unique solution that can satisfy them time after time. The code for the successful subscription lies in your data and the knowledge you therefore have to your customers. Are you interested in developing the subscription which creates loyal customers, increase brand knowledge and community among your customers, please contact us and let us together find the solution which your customers just have to share with others!
- Contact -
Casper Bo Jørgensen, Customer Relations Manager
Tlf. +45 23 30 79 56 eller mail: cbj@hesehus.dk
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