What You Need To Know About Access Subscription Before Getting Started
The concept of subscription is becoming more popular as customers are depending on subscription businesses to satisfy major aspects of their daily lives. And that’s not going away any time soon.
According to Chargezen’s research, customer acquisition costs (CAC) are up more than 50%, and willingness to pay for software has declined steadily for the past five years. This means there's never been a better time to start capitalizing on your customer relationships through subscriptions.
In subsequent articles, we will discuss the benefits, risks, and everything you need to know about the curated subscription and replenishment subscription models. But first, let’s start with the third most commonly used model - Access subscription.
Access Subscription in Brief
What majorly differentiates Access subscription from the other two is that while Curation and Replenishment are for physical products, Access subscription extends into digital realms and services such as streaming, etc. Spotify and Netflix are a few of many examples of brands using the access subscription model since it requires users to pay a certain recurring fee to access their content.
This subscription model can be modified to give subscribers access to multiple tiers of content. This model can also be used to give customers access to services. An example is Amazon Prime or health care providers who provide service coverage for members.
Access subscriptions constitute only 13% of the subscription ecosystem, yet it is considered the fastest-growing subscription model because of people’s increasing demand for content. People are reading articles, listening to music, streaming shows and movies, and looking to learn more now than at any other time in history. Millions of people have subscriptions to educational or self-improvement content in addition to entertainment. For instance, many gyms now have a subscription that gives members access to live training and at-home workouts. More people are also enrolling in online courses and using educational apps to improve their skills and knowledge. An access subscription model is commonly used to provide membership and materials, but it can also be used to provide a number of perks to subscribers.
Advantages of Access Subscription
- Room for product testing
The access subscription model gives merchants the avenue to test new products since they are able to give exclusive access to a limited number of subscribers who are subscribed to try the product before it goes on sale.
- Increased Customer Engagement
With an access subscription, your customers are more likely to engage with your content, use your service, or buy your product on a regular basis as opposed to a curated or replenishment subscription that only allows customers to receive your product at defined intervals. And even if you sell products with access subscriptions, you can continue to provide value to your customers and deepen the relationship with them by providing useful information, instructions, and suggestions for how to best use your product.
- Upsell Your Physical Product
An Access subscription can help raise your offering while also keeping your company in the public eye. An access subscription for connected hardware gives your users more ways to judiciously use your product successfully. For instance, Crossrope sells training equipment such as jump ropes, handles, and mats, as well as a premium subscription. Customers who subscribe to Crossrope Premium therefore gain access to an app that includes a workout library, fitness programs, and a means to track progress. With this additional content support, customers are more likely to keep using their products and get the most out of them.
- Reduced Barrier to Entry
If merchants were to put a price on the value of their library, a one-time purchase would likely be too expensive for customers. With such a high price point, it would be an unlikely investment for many. However, an access subscription means payments can be made over time, so customers can get access for a set time at a lower cost. So, as your prices are at a reasonable range, you lower the barrier for entry and get more customers subscribed.
Planning for Success with Access Subscription
Here are a few things to help you plan for success as you incorporate Access Subscription into your business:
- Give Customers a Trial Version/Period
Giving potential customers a brief preview or the experience of a subscription for a period of time without any long-term commitment can significantly help them with decision making and increase your conversion rate. This gives them a sample of your service with the freedom to leave if it’s not for them. And, once they’ve had a chance to see your offerings, they’re more likely to want to stay.
- Make Cancellation Flexible
If a subscriber is considering cancellation, consider providing them an incentive, such as a free month if they decide to stay. However, if the customer insists on canceling their subscription, make the process as seamless and quick as possible for them. Nobody wants to feel pressured into purchasing something they don't desire. While it may appear contradictory, this really aids in the development of brand loyalty and lifetime value, since individuals are more inclined to return to brands that are flexible.
- Maintain Service and Content Quality
While services and content from Access subscription can be dynamic, it is important for your brand to be keen on maintaining product quality. Keeping up with the latest developments in your industry would be a good place to start. If a new issue or shift emerges, you should consider covering or highlighting it in your material. If you're giving services like free delivery, invest in making it as simple and streamlined as possible for your clients. Essentially, ensure that your offerings remain top-notch so that customers continue to subscribe.
- Use a subscription app that supports your growth
Subscription-only businesses often fall into the trap of seeking a subscription app that offers simplicity when they want to launch and don’t ask if that app will support them to scale subscriptions. So, if you’re thinking of adopting the Access Subscription model for your business, choosing a subscription app that supports your growth is the first step in the right direction.
If you’re not sure how an Access subscription can work for your business, check out the other subscription models or contact me at email@example.com so we can figure out which model best suits your business.
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