What You Need to Know About Business Subscription Models

A subscription business model is a recurring revenue model that allows you to leverage your customer relationships to create a steady stream of income, just like you would do for cash for car junks. Customers are charged on a monthly or annual basis for products and services, and they can renew their subscriptions after a certain period.

As a customer, you will have the convenience of automatically repurchasing a product or service that you know you will need in the future. As a business, you will retain customers for future sales rather than re-engaging them frequently. For the right product, industry, and brand, the subscription model can be a very effective and lucrative approach to running your business.

How Subscription Model Works

In a subscription model, customers get charged regularly for a product or service. They choose how long and how often they want to receive each offer, and most subscriptions provide the option to make renewals or cancellations at any time. You should think of a subscription as a contract between you and the customer. The customer will agree to pay for a product or service for a period of time as long as the customer completes their recurring payments. When the contract is up, the customer has the option to renew or cancel the subscription.

Here are some of the main benefits associated with subscription models.

Customer convenience

Subscription models are quite convenient to customers. People are busy and if they can get a product delivered when they need it, with little to no effort on their part. Subscriptions are quite good in saving people from having to research new products and shop for them. Subscriptions create a more seamless customer experience.

Discovery of new products

With subscriptions, customers can discover new products. Customers will be able to tp save money from not having to travel to the store. Additionally, they will get new items that they may not have purchased on their own. Take an example of Snake Crate, where you can purchase boxes of snacks from around the world. With this form of subscription, you might discover a new favorite snack that you never knew existed.

Revenue Prediction

With a subscription model, businesses can accurately predict revenue. This type of model makes it easier to predict how much revenue your business will receive each month. Since your customers will be paying repeatedly, you know when they are going to make a payment and how much it will be for. When you are putting forward a budget into your business strategy. it will help you have an accurate representation of the resources your company has.

Attracting more customers

Subscriptions attract more customers. Sometimes, the price tag on a product or service can be cost-prohibitive for a customer. Charging weekly, monthly, or even annually will allow you to set a price that is most affordable and will let your consumers budget on their monthly bills. Additionally, subscriptions decrease customer acquisition costs.

Stages of the Product Life Cycle

As a tow truck or any other business marketer, it is important to understand how your marketing tactics and strategies will change depending on the stage your company is in. A brand new product will market differently as compared to an already established one. For a new product, marketing will be focused on raising brand awareness. For any product, it goes through different stages, right from the time is it produced, enters the market to the time it exits the market.

Product Life Cycle

A product life cycle is a cycle that a product goes through from its development to decline. It is normally broken up into different stages. Business owners and marketers use the product life cycle to make important and informed decisions on aspects such as advertising budget, product pricing as well as packaging.

Here are the stages of a product life cycle you need to understand.

Development

the development stage of a product life cycle involves the research phase before a product is introduced to the market. It involves a time companies bring in investors, develop different prototypes, and test the effectiveness of a product and come up with a strategy for the launch. Due to the nature of this stage, companies find themselves spending a lot of money without necessarily bringing in much revenue. The duration of this stage will be depended on the complexity of the product as well as competition.

Introduction

The introduction stage happens when a product is first launched in the market place. It happens when marketing teams build product awareness and reach out to potential customers. Typically, when a product is being introduced, sales are low and demand starts to build slowly. This phase is heavily focused on advertising and marketing. Companies work to build their brand and work on testing distribution channels as well as educating their potential customers about their products.

Growth

During the growth stage, customers have already accepted the product on the market and are fully buying. Demand for the product is growing and profits are kicking in. During this phase, marketing campaigns will normally shift from getting customers to buy-ins of the established products. Companies work hard to continue building and growing their brand, as well as keeping their reputation. Additionally, as companies grow, they will begin to open new distribution centers.

Maturity

The maturity stage is normally when sales being to level off from a rapid growth period. At this stage, companies will begin to reduce their prices so that they can stay competitive among the growing competition. At this stage, a company continues to become more efficient and learn to improve from mistakes done from previous stages. Marketing is normally focused on differentiation rather than awareness.

The last two stages are maturity and decline. During maturity, competitors have begun to take a portion of your market and a product will experience neither growth nor decline. Most consumers will be using the product but there will be many competing companies.

The last stage is the decline. If a product doesn’t become the preferred brand in a market place, you will typically experience a decline.

How to Win Back Customers After Stalled Growth

When customers are not engaging with your brand, they might feel left out. Retaining customers and keeping churn rate as low as possible is an admirable goal for any business. Towing services in Kettering have perfected the art of keeping their customers engaged and doing so helps in keeping rate as low as possible. Many customer win-back strategies are targeted towards customers who have started to disengage from your brand. Customer win-back strategies can be very effective with stats showing 45 percent of customers who have started to show signs of doing business elsewhere are ready to get back to you.

Here are sure ways on how to create a customer win-back program

Plan a comprehensive email marketing strategy

Your customer win-back program should start and end with a personalized customer win-back email campaign. The campaign you create should include a series of emails that are meant to re-engage customers who had initially started to disengage. It could mean those customers had stopped reading your emails or have not made any purchase from you. For your success, ensure the email campaign is well personalized. You can use recipient names in their email, offer good product recommendations, and customize all your offers.

Make a realistic offer

To have your customers come back, you must offer them some form of incentive. While offering them those incentives, ensure you are realistic in what you can give them. The offer you give them should be hard to refuse, while at the same time, remain true to what you can deliver. The offer you are giving to your customers doesn’t necessarily have to be a discount. It could be a coupon, free shipping, or product upgrade. Whichever the offer you decide to settle on, ensure it offers solutions to the problems a customer is facing.

Be strategic

While creating a customer win-back strategy, you need to be strategic. Ensure your emails contain a sense of urgency while also communicating solutions to the problems customers are facing. You can also use another strategy of creating the fear of missing out. Additionally, give customers options so that they can choose the deal that works best for them. While sending emails to ton your customers, give them the option to dictate their frequency and also decide on unsubscribing to emails.

Ask for feedback

During your email campaigns, you need to ask your customers for feedback. Doing so will show to your customers that you take their input seriously. You can send some form of a questionnaire or ask questions on specific products and services that gauge overall customer satisfaction. Asking for feedback can also help you come with new strategies that can help you serve customers better. If you can know why your customers are churning, you will be better equipped to solve all their issues and prevent further churn. Always take your customer feedback seriously because there will always be something vital you will learn from their interaction.

For everything you do, always test and measure results you get and keep on improving.

Wood Treatment Options for Homes using Logs

logsProtecting and maintaining your logs should be an easy job, but in most cases, its one that is highly neglected or forgotten. Treatment to protect your logs should begin before the actual construction begins and should continue for the life of your home. Maintaining your timber is an important step you can take to preserve your logs. When treating and protecting your logs, here are some of the available options you can employ.

 

Drying

You can treat and preserve your logs through drying. Water inside the wood can have a lot of harmful organisms that can trigger the agents of decay. The first step you should take as a homeowner is to dry your logs to reduce the levels of moisture content. You can air dry the logs for about a year or consider heating the logs in kilns to minimize moisture and kill insect larvae.

 

Borate Treatment

Sodium borate is specially designed for treating woods, specifically lumber, and equally other solid wood products. Borate, which has a low solubility is used for the preservative treatment of wood composites. Borate takes advantage of moisture content in the wood to penetrate as deep as it can. Borate is highly effective in destroying insects, as a fungicide and for anti-corrosive formations. As a homeowner, you can protect your logs from fungi and insects by dipping logs in tanks that are filled with a borate-based solution or just by infusing them with borate preservation using pressure treating.

 

Cleaning

log careBleach and water combined with a little detergent have been an impressive and long-lasting recommendation for treating dirty wood. Cleaning works pretty well, it is simple, fast and cheap. However, not that cleaning can destroy cellulose in the wood if it’s left on the surface for a long time. You can purchase prepared cleaning solutions and apply them to clean your logs.

 

Wood Preservatives

The next possible option when taking care of your logs is by the use of wood preservatives. The most important role and work of a preservative are to repel the primary enemies of your logs such as water and other insects. The most damaging effect of water is that it promotes mold and mildew thus attracting insects and fungi. All these aspects break down the wood and wear it down. With wood preservatives, you should also have maintenance schedules depending on the type of logs you are taking care of, and climatic conditions.