Subscription Models – “The Consumables Model”
Isn’t it annoying when you run out of something you really need? You wake up on a monday morning and the cat is staring at you, demanding his food – but you forgot to buy it, your razor is too dull so your morning shave is really uncomfortable, or you want to make a cup of coffee to start the day with but the coffee container is empty – because you forgot to buy more… These situations are easily avoided. How? By subscribing to the products you really need.
Make life easier with the Consumables Model
With the Consumables Model you as a business can offer your customers a subscription to things like everyday items they need on a regular basis, or feel-good items they want as a treat, or maybe hobby related items the customer consumes for fun. Most common is probably everyday items such as coffee, razors, pet food or groceries. Businesses that use the Consumables Model typically sell everyday products of some kind, to customers or to businesses. One of Reepays customers using this method is Matas, Denmarks largest health and beauty retailers.
If you already have a webshop selling everyday products you probably have a lot to offer your customers subscription wise. I’m sure you as a consumer can think of several products you use in your everyday life that you could subscribe to and make your life easier! And why not implement it on your own products?
So who should use this subscription model?
If your business has a customer group with busy lives that are willing to pay extra for the convenience of having products delivered instead of going shopping for them, you are a good fit for the Consumables Model. Or if you sell everyday products that aren’t that much fun to buy and are annoying to have to make an extra errand to replenish, like cat food, you should also consider the Consumables Model. Or if you sell products that naturally run out, like coffee. Or why not toothpaste!
Keep this in mind when you use the Consumables Model
Many other businesses are already using this model, one of the most well known are the american e-tailer Amazon, that provides their customers with product subscriptions on a regular basis. Of course, Amazon can offer a multitude of products that not many other businesses can compete with, but that’s no reason to get discouraged! Just make sure that what you offer is different from what other companies offer, so that you stand out from the crowd and the customer is choosing you.
– offer discounts
– your own brand items
– or any other way to make the customer pleased with choosing you for a subscription.
This model works both for big and small businesses, and if you’re a smaller company you need to be clear about how the customer benefits from choosing you and not some big, maybe more well known company. As a smaller business it’s hard to compete with the bigger companies’ prices, product range or free shipping – but what you can do is to focus on the shopping experience when the customer is choosing you. Make them feel valued and appreciated, add a personal touch, offer what discounts you have budget for at the moment or other things that enhance the shopping experience. Time will tell, but in the long run you’ve most likely gained more loyal customers and more profit.
What can you do?
Take some time to think about your company’s products. What can you offer your customers that can make their lives easier with a subscription from you? And how can you stand out from the competition? When you’re ready to make a subscription plan, let’s talk – we’re happy to get you started!