When you are creating a subscription style business the toughest aspect is creating enough reason for the audience to commit to a recurring payment. Some customers may not see the reason to regularly use a subscription service. Instead they might only be interested in using a short-term service to help them improve something immediately and then not engage again until the problem re-arises.
If you don’t offer a one-time product this can mean that some customers will not give you a chance, but could you offer this to entice customers into becoming recurring clients?
Demonstrating Your Regular Service
The biggest advantage of a one-time product is that it provides customers with the experience of having you solve their problems. Once they’ve seen how expertly and easily you can contribute to their success and problem solving they’ll be more inclined to work with you again. Research has shown that positive customer experiences lead to greater frequency of purchases and higher spending.
At the same time, it helps you build a strong rapport with your customers, people like to buy from people they can trust, and the more trust you can generate with the customer, the higher the chance they will become a long-term subscriber.
Why Is It Important To Get Recurring Customers?
Recurring customers are essential if you are looking to generate steady revenue that is predictable and cost effective. It is less costly to market and sell to existing customers than it is to acquire new customers. It also helps to improve the customer’s lifetime value, which is a vital component of your KPIs that you should be monitoring on a regular basis.
Finally, recurring customers are easier to deal with when it comes to completing tasks. A new customer will take time to learn how they like to be interacted with, their work dealt with and finally how they liked to be billed. Once you’ve established a rapport with your customers, this all becomes easier, taking less administrative time and therefore less cost to process the customer.
Integrating One-Time Products Within Your Subscription Service
Instead of just looking at what you can offer your customers in the long-term, look at an average month or period and assess how you would offer a product over that time. For instance, if you offer an SEO service – look at what work would be done over an average month and create a one-time product for that week.
Alternatively, you could offer consultation services in addition to your other services. For instance, you could offer an SEO consultation, either virtually or at their location, where you advise them of what needs to be done immediately and in the long term. This is advantageous for a couple of reasons. Firstly it provides them the details of exactly what needs to be done on a regular basis to achieve a professional standard, secondly, it helps to build a rapport between you and finally it helps to sell your expertise.
Additionally, by meeting the customer in this way, you are essentially giving them a long term project proposal – something they can go away and think about.
If you run a subscription service, or a business that offers repeatable products, then attracting regular, recurring customers is essential to your business’ success. However, customers might not be willing to commit to your services immediately on a long term basis. To combat this you need to create short-term or one-time products to entice your customers into becoming long term customers to generate significant revenue for your business.
This will help you to generate long term customers who will stick with you long past the original purchase.