With the advent of online shopping and the eCommerce market, subscription-based industry models have become fairly popular among many markets. Let’s have a look at four industries that have adopted the subscription business model and have increased their overall sales and value in this decade. Let’s get started.
The Online Floral Industry
The floral industry has seen tremendous growth in the eCommerce sector due to its increase in sales in the online platform when compared with traditional floral shops. Amongst the many marketing techniques and strategies that helped the industry thrive online, a significant contribution was due to the usage of the subscription business model.
By converting the floral industry into a subscription-based industry, sellers were able to generate recurring payments both on a monthly and yearly basis. The reason why this model was easily adapted by the floral industry is that most consumers tend to purchase flowers on a recurring basis, either for birthdays, anniversaries, or special occasions like Valentine’s Day and Mother’s Day. Hence, people were easily convinced to subscribe to a long-term plan which ensured the delivery of flowers on a timely basis, while also availing small discounts which come as a benefit of subscribing to this offer.
This was easily seen as a win-win situation for most consumers as it not only reduced the overall cost but also saved them the process of having to remember to re-order flowers every month or year for a particular occasion. Thus, online flowers and the eCommerce of the floral industry have gained a lot of popularity due to their ease of use and convenience when compared to regular floral shops.
Skincare and Beauty Companies
If a product is good then people are going to want to come back for it. This is the simple principle most beauty and skincare companies believe in which eventually led to their usage of the subscription-based model. This industry was able to thrive on consumer subscriptions simply because most consumers prefer sticking to brands and companies that they have previously used when it comes to their skin’s health and beauty.
Most consumers were able to immediately subscribe for the skincare products on a long-term basis because these products are typically used on an everyday basis and will have to be restocked at regular intervals. By using this model, skincare companies were able to turn their consumers into long-term and loyal users who invested in their products for months if not years.
Nutrition and Health Products
With the rise in health awareness among the general public, a large number of consumers have become regular customers of health and nutrition products. These products are usually vitamin and mineral supplements, protein powders, and energy boosters. Since these are expensive products that are consumed on a fairly regular basis, it makes sense for consumers to subscribe to these products on a monthly or yearly basis, depending on their intake. Additionally, by availing of the discounted subscriptions given by the company, the consumer ends up saving money that they would have normally spent by purchasing the product themselves.
This industry has been booming ever since it adopted the subscription-based industry model, simply because almost all consumers found it far more convenient, cheaper, and logical to subscribe to their products on a monthly basis. This industry covers a vast number of products like toilet paper, sanitary napkins, and diapers for adults and babies. By becoming monthly subscribers to these essential products, consumers can receive their products regularly at a discounted price without the hassle of shopping for it themselves.