- TECHNICAL CENTER
To successfully grow a subscription business, companies need a solid acquisition strategy. Aside from having the support of a great subscription billing platform, what else do you need to succeed in this industry? Here are a few pointers:
Know your customers
The first step to gaining new customers is understanding your user base. What is your target demographic, or do you have more than one? Do unique demographic groups use your platform differently? Take a hard look at subscriber behavior to find common trends. This information will help you develop the right messaging to attract new customers. At this stage, it might help to develop unique customer personas to help your business learn how to communicate with each one. Millennials may be attracted to different aspects of a service than baby boomers, for instance.
Choose the right customer acquisition channels
Drawing in new subscribers involves a combination of inbound and outbound marketing. Depending on how your prospects respond, choose a combination of strategies, including display and pay-per-click advertising, email marketing, social media, and even affiliate networks. Developing an understanding of your current subscriber base will help you determine the best mix of tactics to use to draw in new customers. Word of mouth is also a crucial strategy. Consider using current subscribers to attract new customers. Provide incentives for customers to share the service with friends, for instance, by offering a free month of service.
Promotions are a great way to gain new users or draw in lapsed subscribers. When it comes to subscriptions, the free trial is the favorite way to promote your services. It may be difficult for first-time subscribers to take the leap the first time because a subscription requires commitment. A customer may be reluctant to pay for a whole month of a service they are unsure about. Limited-time free trials give prospects a chance to try out your service before they pay for it. Use digital channels to raise awareness about free trials and other promotions, for instance, three months of service for the price of one.
Make payment easy
After you’ve hooked a customer on your service, it’s a shame to lose them just because making a payment was difficult. Make sure it’s easy for customers to submit payment. The first step is to provide a wide variety of payment options so subscribers can select their preferred method. In addition to credit cards, allow customers to use PayPal and other services if they desire. Another aspect of easy payments is creating pricing structures that make sense. As CIO pointed out, complex pricing structures may confuse customers and prevent them from signing up. Keep the pricing structure simple so prospects know what they’re signing up for.
Acquiring customers is an important part of maintaining a successful business. Just make sure that you continue to focus on customer retention as you add new subscribers over time. The result will be an active customer base that continues to engage with your brand.