5 strategies to grow your subscription business
Whether you are already running a subscription business or planning to get started, setting up subscriptions is no easy feat. Because acquiring and retaining customers long-term is harder. Customers who churn quickly result in both money losses, but there are many things you can do to grow a profitable subscription business. To foster trust with your subscribers, you must be armed with relationship-building and marketing strategies.
Here are some of the effective and proven strategies to grow your subscription business.
Create a stronger bond with your customers
When you are running subscription businesses, for example, an OnlyFans clone site, customer retention is more important than customer acquisition. You have to create a steady flow of interest in your subscription offer, but if you fail to make a strategy around keeping the customers who have already signed up for your services, your churn rates would be high.
Upselling and cross-selling can be used on your long-term customers to keep them, and if you want to organize a live event, your subscribers will be the first people who would buy your tickets.
Building relationship with your customers include:
- Asking for customer feedback.
- Implementing loyalty programs.
- Responding to customer reviews, comments, and questions.
Improve your email strategy
Start with sending emails about your subscription business. Or, if the subscription pricing model is a recent addition to your business, start by sending emails to your existing customer to let them know.
If you have been offering subscriptions for some time now, it’s time to hit them with a well-timed email with exclusive discounts. A proven method of converting your audience is by offering a convertible subscription.
Here is how you can do it.
- Offer a free trial-sized version that converts to a regular-sized product.
- Give your customers a free gift.
- Offer the first subscriptions at a discounted rate.
Emails must always be sent at the right time, and make sure you strike a balance between the number of emailers. Research states that 69% of customers will unsubscribe if they are spammed with too many emails.
Update your pricing model
Do not make your pricing model the USP of your brand just to beat the competition. Price your services according to its value and focus on other USPs. Make sure you update your pricing strategy frequently to ensure that you are in line with industry pricing, account for inflation, and are flexible enough to keep long-term subscriptions secure.
Pay attention to the performance metrics
The growth of any business doesn’t equate to progress until you analyze and measure it. The same is true with running a subscription business. Analyzing the performance metrics will help you estimate the health of your subscription business, how well it is performing, and whether your profitability is going in the right direction. Performance metrics will also help you track important key performance indicators (KPIs).
Important KPIs for subscription businesses include:
- Monthly recurring revenue: Calculate how much revenue you will receive monthly or yearly by calculating the number of subscriptions.
- The average revenue per user: Use this metric to calculate the average revenue you can collect from each user on a periodic basis.
- Customer acquisition cost: The total money you have to spend on acquiring a new client.
- The lifetime value of a customer: The total money a user spends on your subscription site consuming your products and services.
- Churn rate: The rate at which users unsubscribe your platform and do not renew their subscriptions.
With subscription business models expected to rule the content platforms in the coming years, understanding how to measure revenue-related metrics will make you understand where your subscription business is thriving and where it is lagging behind. This way, you will know exactly when to change your pricing model and business growth decisions.
Invest in building valuable content
High-quality content is one of the important factors that owe to the growth of subscription platforms. Investing in creating valuable content can make your subscribers come back for repeat purchases.
Content of subscription platforms can be in a different form:
- Exclusive images and videos.
- Podcasts of videos.
- Downloadable eBooks and guides.
- Exclusive subscriber online content like discount codes.
From adult content to podcast episodes and training videos, the content options are endless. Knowing not just how to create great content but also how to distribute it is also important. Make sure you post the content on social media platforms as well but keep the exclusive content just for your subscription platform.
Build your subscription platform
The first step of running a subscription platform is to build your own subscription platform or marketplace. Adult content subscription platforms like OnlyFans are gaining high popularity due to its business model and exclusive content. If you want to create an OnlyFans clone, the best approach would be to choose a ready-made software solution to build your website with all features and functionalities you need to grow and scale your business. If you want a software recommendation, Fanso is a professional OnlyFans clone script that you can leverage to build your adult or non-adult fan club website.
Prioritize customer retention
As you might already know it, acquiring new customers can be more expensive than retaining your existing customers. Hence, it is important to give priority to retaining your existing customer, which can increase your profits by up to 95%. Customer retention is more cost-effective and easier than customer acquisition.
Revamp your marketing strategy
Don’t limit your marketing efforts to just word-of-mouth referrals when running a subscription business. Make sure you follow an Omni-channel marketing strategy that includes the following. Link your social media profiles to your subscription website so that your customers will know exactly where to look for you.
- Search engine optimization.
- Social media marketing.
- Email marketing.
- Influencer marketing.
Building a subscription business that people want to sign up for is great. But you need to focus on building relationships with your customers to boost your growth strategy. Customers would choose to renew their subscription if they trust you, and this will help you get more leads from the connections you build and nurture.