Merchants that adopt a subscription business model can implement offerings such as mobile optimisation, feedback and rewards to drive conversions.
Nearly all, or 95 percent, of the industries’ top performers had implemented plan options in the fourth quarter of 2018.
A startup company, Pudpod has three subscription tiers, basic, premium and concierge as a way to test the market. According to Erick Eidus, CEO of the company, he noticed that “ approximately 30 percent of his subscription customers have chosen his highest-tier concierge plan, while most other customers have chosen his middle-tier plan. In contrast, few customers have chosen the basic offering. To purchase his offering, consumers can pay either through the PayPal or Stripe payment gateways, and they select a membership plan when they purchase their IoT wobbler dog toys on PupPod’s site.”
Nine in 10 of the top performer, or 90 percent, offered mobile optimisation in the fourth quarter 2018. A number of subscription offerings turned to mobile payments.
Hulu and Venmo teamed up late last December to provide the latter company’s digital payment services to the Hulu streaming platform. Through partnership, those who have an account with Venmo can sign up for a new account in a matter of clicks instead of entering credit card information. And, at the payment screen, consumers who select Venmo as a payment option can use a linked payment or their Venmo balances. Furthermore, the company stated, “We’re very excited about this partnership because Hulu is the first-ever TV streaming service to offer Venmo as a payment option for your subscription.”
Seven out of ten, or 70 percent, of the top performers had feedback in the fourth quarter of 2018.
The Farmer’s Dog used feedback to sign up for pet food subscription services. Pet parents need to answer a few questions about their dogs as if they are going to a vet nutritionist. The idea is to provide a different experience from the dizzying array of possibilities in the pet food aisle.
Fifteen percent of the top performers offered rewards in the fourth quarter of 2018.
Wayfair rolled out a paid membership program called MyWay. This new paid membership program offers benefits such as insider sales, discounts on installation and assembly services, free shipping and next-day delivery. The program was said to be available to Wayfair customers in the U.S. and benefits could also be used at AllModern, Birch Lane and Joss & Main. Ed Macri, Wayfair Chief Product and Marketing Officer said, “With the introduction of MyWay, we are inviting customers to enjoy an elevated level of service and value while offering yet another reason to make Wayfair their go-to destination for everything home.”
To sum it up, merchants who adopted subscription offers are turning to features such as plan options and mobile optimisation to meet the needs of their customers. Merchants should keep in mind to choose the best subscription plan that will fit needs of their services or product offerings to gain more subscribers in the future.
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