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The subscription model is a trend we’re seeing more and more of where a brand or a product skips the middle man and tailors content and messaging unique to a target audience to try and initiate an “ongoing” sale. Whether it be daily, weekly or monthly, we’re seeing this with products such as razors, underwear and food delivery, to name a few. But is this right for all products?
An article by econsultancy.com challenges the model and looks into what makes a viable subscription. The answer is that there needs to be a regular incentive to purchase covering both the “need” (food and toiletries) and “want” (wine or beauty products). Interestingly, “Hello Fresh” manages to address both by being the “need” to eat and the “want” to make it healthy.
Nike tried a subscription model for children which encountered a few issues. They offered regular shoes delivered to kids on a monthly or quarterly basis. However, the American Orthopaedic Foot and Ankle Society recommended that children over the age of three should only get new shoes two-three times a year.
The other area where subscriptions work for products and add value is where an element of personalisation is considered. As brands learn about a customer’s preferences and tastes through all kinds of invaluable data, the offer just gets stronger as the content and offer becomes more tailored resulting in a positive customer experience.
Brands also have the opportunity to partner with other products and include these as “freebies” or trial products. On the back of this, subscription brands and their suppliers need to be mindful of the increasingly environmentally conscious customer.
In summary, there are numerous advantages of the subscription model where brands will need to show the value-add and enhance the customers’ experience. If they don’t, the product could simply be seen as nothing more than a gimmick.
Source: eConsultancy
