The subscription business model first emerged about a decade ago, and after a brief lull in recent years, it has spread to almost every major industry. With predictable revenue for businesses and convenience and savings benefits for consumers, subscriptions have become an integral part of consumer culture.
Last year, the “subscription economy” in the UK was estimated at around £395 million. Obviously, consumer attitudes towards subscription services are noticeable, as evidenced by the fact that today’s millennials have an average 17 paid media and entertainment subscriptions each. But one area of the subscription market that’s been booming lately is subscriptions. boxes: Offering everything from beauty products to pet food, a subscription box can encourage consumers to build a long-term relationship with a brand by promising the ultimate in convenience.
With the right product and the right box model, a subscription box is the perfect way to increase your loyal subscriber base – even for a start-up business.
So, if you are thinking about starting a subscription business or adding a subscription service to an existing offering, read on to find out how to start a subscription business.
How to create a subscription box idea
The great thing about subscription boxes is that you can create a model that suits different demographics and interests. However, when it comes to launching your first box, it’s best to pick an area in which you already have a decent amount of knowledge. It’s important to have a good understanding of your target market and what might resonate with it.
The initial idea and research steps are the most important: no stone can be left unturned here! Assess the market and try to gauge the level of demand and competition that already exists. You can then think of practical requirements such as developing a good website and of course marketing your box to your target audience.
Find your niche
A few of most popular subscription boxes include food boxes, shaving boxes, and beauty boxes, but the possibilities are (nearly) endless – as long as it fits in a reasonably sized box! Subscription boxes have grown tremendously over the last decade, so whether your idea is for crafters, coffee lovers, or fitness enthusiasts, you can create your own box for just about any purpose.
Of course, the more niche your product offering the smaller your available market. However, there are likely fewer competing brands in more niche areas, so you need to find the right balance between demand and competition. Do you have an idea that will fill a niche in the market? What is new or different about your idea? Don’t be afraid to think outside the box.
Study your ideal client
Another important step is to research your ideal client. Once you have a few subscription box ideas, think about who will be interested in your products. Demographics are a key component of your target market, including factors such as age, gender, marital status, and income, as they will help you understand your ideal customer’s needs and interests.
Your subscription box won’t get off to the best start if you don’t consider your ideal customer. Find time to create a personality, as this information can also be used in a marketing strategy to generate leads and brand awareness. Once you understand who your ideal client is, is anthis is something you can keep referring to.
Figure out your operational plans
Creating a subscription box involves a lot of operational planning. From storage to packaging to shipping, you must consider how you intend to ship your subscription box from A to B, as well as how you intend to manufacture or ship the products contained within and the packaging in which they are shipped. .
Your operations must run smoothly or you risk disappointing consumers by offering below par services. Every month, your subscribers will expect a box to arrive at their door on time and meet their expectations, so be sure to calculate the costs involved and choose the right suppliers. Take a closer look before deciding on things like courier services to find the option that fits your exact needs.
Create your website
Every subscription box needs a good website. As a new subscription business, this means creating a website with a clean yet attractive design, useful yet engaging content, and the tools your customers need so they can seamlessly manage their subscriptions from their devices.
For example, to ensure seamless payment and billing, you may partner with third-party service providers that automate recurring payments. This will keep things simple and convenient for your customers and allow you to focus on important things like marketing and creating great content rather than dealing with payment issues. Read this guide to understand how the recurring billing process should work.
Advertise your subscription
When marketing your subscription box, the initial goal is to increase your brand awareness. Social media is a great way to increase your reach and make yourself known. Instagram is perfect for sharing aesthetic content like creative flat layouts of each box, while TikTok can bring you a global audience! Just be sure to use the right hashtags to properly target your social media posts.
How about reaching out to influencers? If you have a big marketing budget, sending boxes to influencers in your niche can earn you social media endorsements – find out who the big players in your field are and boost their value.
What are the benefits of a subscription business?
There are many benefits to starting your own subscription business. The subscription business model is a great way to provide a predictable income while providing your customers with a cost-effective service every month – win-win!
Here are the top three benefits of subscription boxes you should be aware of:
Predictable income from customers
When someone subscribes to your box, it’s very easy to calculate your projected monthly income. Depending on what packages you offer, some subscribers may be tied to an annual subscription, or they may have the option to skip months here and there, depending on their needs.
Either way, knowing how much money is coming in will help you optimize your business so you can reinvest in growing it. Take Spotify for example: their subscriber base has grown dramatically over the past few years and now has more than doubled since the beginning of 2017. While you may not achieve the same level of global success, you can start building a loyal customer base and a reliable source of income.
Subscription boxes represent future e-commerce trends
The subscription model has become more popular than ever before. Existing subscription brands increased the overall customer base by 31% only in 2021 as customers get a personalized experience and cost savings from subscribing to a product or service they love.
Subscription boxes should become the new shopping standard as e-commerce grows. Many brands are adding subscription boxes to their sites as they are quickly becoming the preferred way to shop due to the convenience and flexibility they provide.
A great way to develop cooperation and partnerships
Have you considered collaborating with other similar brands to create a variety of boxes? By teaming up with other brands in your niche, you can take your boxed subscription game to a whole new level and improve your brand profile.
Maybe selling a limited edition collaboration box will help you get more customers. For example, if you’re selling a coffee subscription, why not partner with other independent coffee brands to include their merchandise, such as coffee beans, insulated cups, or mugs, in your box? When they share their collaboration on their social media and websites, you will reach a wider audience.
Starting a subscription box business is not going to be easy anyway, but with a lot of planning, hard work and high quality service, you can scale quickly and gain loyal followers across the country and beyond.