It’s hard to think of an industry that hasn’t entered the subscription service game. From television streaming to food delivery, this business model is thriving in popularity. As a result, marketing agents are looking for tips and tools to understand how marketing these subscription services might differ (or be the same as) traditional campaigns.
Subscription services as an industry have grown at 200% annually. This represents a huge growth margin for marketers to try their hand at a successful subscription venture. But marketing a subscription service might be a step outside the comfort zone of some marketers.
That’s why we’ve put together a useful guide for understanding how marketing subscription services differ from traditional campaigning and how it’s the same. Compare and contrast to better formulate your own approach to service marketing.
How Subscription Service Marketing is Different
Marketing a subscription service is an involved endeavor requiring constant assessment and innovation. The key difference in this business model is that customers must be retained monthly for a consistent income. In other words, you must continuously prove and incentivize customer loyalty.
While selling any product or service has these elements, the subscription service market differs mainly in audience and focus. Here’s what you should know.
Subscription services blend B2B and B2C audiences.
Experts in subscription service modeling understand from experience the value of a user-friendly service no matter who your customers are. Whether your products are typically business-to-consumer (B2C) or business-to-business (B2B), all desire the same ease of use as a B2C model.
Marketing a subscription service even to businesses requires highlighting the accessibility of your product. Businesses want to be treated just like any other consumer when it comes to navigating a subscription service, so make business accessibility a focal point of your marketing outreach.
Subscriptions come with varying levels of service
To hit on a diverse user base and increasingly expand and retain your subscribers, you need to offer varying levels of service. This might take the form of popular free and freemium tools like those available for content marketing. Varieties of service ensure that customers are finding, using, and sharing your product.
Consider free samples or even a free version of your service to generate interest. With a variety of offerings, your marketing strategy can reach a broader audience.
Maintain a greater focus on customer retention
Without a consistent subscriber base, your service will not achieve the desired results. With traditional product models, a single purchase may be all it takes to generate sufficient revenues. In a subscription model, customers must retain their subscription over time. This means a greater focus on customer retention is vital.
Consider new ways to improve the service and perk offerings that you can market for greater user interest.
Constant innovation is a must
As with any marketing strategy, effective brainstorming and planning will improve the product. With subscription services, however, the need for constant innovation and new offerings is necessary to keep subscribers interested.
A good subscription service uses a marketing strategy that plans for these innovations, allowing the product to grow and thrive over time.
Understanding these points of difference in subscription marketing versus traditional campaigns will help you plan for innovating the service overall. Marketing is often only as good as the product. With a service that listens to feedback and can innovate to maintain interest, you’ll be in a better position to offer businesses and individual consumers the experience they want.
How It’s the Same
Despite the difference in focus points for a subscription campaign, not everything is new. The same elements of planning, outreach, and consumer targeting help you achieve success.
These elements include:
For any marketing campaign, a full and definitive plan should be in place from the beginning. Subscription services are no different. With a suite of planning documents and back-up plans for a variety of inevitabilities, you can all but ensure your success.
Marketing is only effective if it actually reaches interested consumers. This means planning your strategy to meet audiences where they are. Revamp your customer engagement tactics no matter your product type for a calculated approach to email, social media, and customer service.
No marketing campaign is complete without the effective use of consumer data. Understand your audience, build profiles, and understand analytics through useful platforms. Subscription services need the same—if not more—awareness of consumer behavior. Collecting this information through all available means is a recommended approach for any marketing strategy.
With the right planning and audience insight, any marketing campaign can be effective. Subscription service marketing is no different. Develop your strategy, reach out through all available mediums, and utilize data for the best effect.
Subscription services are taking off. With audiences seemingly waiting in line to activate certain subscriptions, the industry is ripe for the right marketing approach.
Though an effective subscription service marketing campaign requires tightened focus, varied strategies, and constant innovation, marketing these services isn’t too much different than traditional campaigning. An efficient understanding of data analysis and consumer targeting will help you craft an ideal campaign, regardless of service.