Most subscription companies think if they just increase the value they deliver to their members, that retention will improve. While adequate value is crucial, delivering more value does nothing to increase retention. Instead, you grow your community, create engagement and build the value of what you’re delivering and show the customer how what you’re delivering solves problems. Then show them how they can use it in their life and how they can get tremendous value. It’s not about the product you’re delivering, you must demonstrate how to use you’re the product you are delivering to improve or solve problems in your members’ lives. There are a lot of great insights in today’s episode with my guest Leslie Emmons Burthey, VP of Marketing for the successful subscription box, FabFitFun. A subscription box with a great retention rate, even though it’s one of the premium priced offerings within the subscription box niche, … Continued
Thousands of new subscription boxes have launched in the last two years; however, only a few have reached one thousand subscribers. Sadly, many failed boxes did manage to grow to 10,000 or even 50,000 subscribers initially. What are the differences between the subscription boxes that grow versus the ones that never launch or those that stall? This answer can help you grow any subscription business to generate steady monthly recurring revenue. Stefan Pretty runs a software platform for subscription boxes called, Subbly. Thousands of boxes are managed with his software, and he has access to their proprietary numbers. I asked Stefan what the difference is between subscriptions that grow within a few months from the ones that never seem to get off the ground? Decision Drives Success He said, “People who tend to actually succeed in gaining traction quickly, are the ones who, either have a: experience, or b: sheer … Continued
What if you had to compete against the Wall Street Journal, Investors Daily, Financial Times, Barron’s, MSNBC, Yahoo Finance and thousands of other paid and free resources. Dan Fink, managing director of Money-Media, offers innovative solutions and lessons learned from his years of competing against some of the biggest publishers in the world, and winning. “It’s really about having a 365-day mentality that if you’re going to try and renew these people a year later, your job starts in day one to make sure that they have a good experience all year long. And then the pressure’s off when renewal time comes.
The real money in a subscription business is not in getting new subscribers, it is in keeping them and increasing their value. They might visit if your sales process is good, but they’ll only stay if your content is truly engaging and you are communicating with them in an entertaining and engaging way.
Jim Sinkinson founded Infocom Group in 1980 and sold it in 2015. The company produced online data services, newsletters, webinars, books, special reports, ad-based media, live professional development conferences and seminars for the PR/corporate communications market. Continued
Georg has been an executive at the highest levels of some of the largest, fastest-growing subscription businesses for the last three decades. And, for you, he reveals the biggest subscription mistakes to avoid, how to deliver value subscribers will eagerly pay to receive, and the single most effective strategy in jump-starting membership growth after it has plateaued. And for inventory, Georg advises against getting carried away. “People say, ‘No, I’ll have 100,000 members immediately,’ and then they buy inventory like crazy, and they sit with a pile of stuff they can never sell, which is a sad story. I would always encourage people to be conservative in the beginning, rather work with scarcity and build up slowly. Conserve your capital. Be very cognizant of capital and spend it in media, and try all kind of channels you can try.” He suggests adding surprise to pique interests. “A little cliffhanger, little … Continued
However, a membership program instantly positions you as an expert in your field, making your communication welcomed by your prospective customers. It makes you a celebrity in the eye of your consumer. And, when it comes time to sell your business, you generate the sales price from your core business and you can sell your membership as well. My longtime client, David Lucca, was co-owner of an investment management firm. His firm worked exclusively with airline pilots, and he was looking for a way to attract airline pilots to become clients of his firm, versus all of the financial investment choices out there. David launched a new stand-alone company, the Airline Pilot Financial Association, to become the marketing arm of his financial management firm and provide great custom created financial resources for airline pilots across the country. I recently interviewed David for my Membership and Subscription Growth podcast. He has … Continued
Your subscription product is more than a simple transaction and needs to be treated differently. Rather than selling that product, you need to be selling results. The results that your customers are going to personally experience by using or receiving your product are where the focus of your sales message should be. Every time you mention your product, rather than talking about it, talk about the transformation or how that customer will feel because of your product. “You’ve got to be different from what everyone else is talking about,” suggests Babak. “I am talking so much more about brand and, really, the sense of experience, because that is one of the bigger things that I’m starting to see across pretty much every industry. That focus on creating an experience and creating a memory and stories around it is a big deal, but at the end of the day, it’s, what’s … Continued
Too many people create a subscription business because they heard it’s a lucrative business model. While it’s true that the membership model can help you scale your company faster, generate long-term stability and enable you to grow a vibrant tribe of thrilled members, generating revenue can’t be your only priority. Instead, when you focus on generating a positive impact on your members lives, they’ll reward you with membership and subscription growth. In a recent interview for the Membership and Subscription Growth podcast, I spoke with Tim Broom, the co-founder and CEO of ITPro.TV. Tim transitioned to a subscription business model four years ago and is set to hit $8 million in revenue this year. What he has done, you can do. Your product may be much different than his, but the keys to his success can be applied to any subscription model. ITPro.TV is, as Tim describes, “a Netflix for … Continued
Passion, customer impact, focus, feedback and service are crucial for maximum subscription and membership growth. For an example, take a look at PopSugar and their subscription box, PopSugar Must Have. While I recommend you subscribe to learn more about building your own subscription program, here’s five “Golden Rules” you can use immediately from a recent interview with Lisa Sugar, PopSugar’s founder and CEO. Continued
Customer success determines retention rates in the membership economy. If your member does nothing with what you sell her, she’s going to cancel your subscription.
The old model of leaving it up to your customer to figure out how to get value from what you sell may have worked in the old one-and-done product sale world.
Your membership and subscription growth is determined by how well you ensure customer success. It involves helping your members find a lifetime value in subscribing to your product or service. I refer to it as turning your subscribers into a vibrant tribe of followers. And, it starts with how you attract your them.Continued