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BizReport : Ecommerce archives : April 27, 2018

Top 3 tips to a better subscription strategy

Subscription commerce continues to show large strides, especially amongst younger customers. But, how can a business ensure their strategy is appealing to the right customers while not alienating those uninterested in subscribing? Here are three tips.

by Kristina Knight

Kristina: How can brands ensure they are ready to compete without subscription services?

Jason Nyhus, VP of Global Marketing & Communications, Digital River: While it certainly depends on the specific product or service, those that are reliant on traditional channels should double down on the shopping experience and customer service. They need to offer a premium experience that brings value to the consumer and provide a level of service that customers can't get elsewhere.

Brands will always have the chance to offer products without engaging the subscription model. But when subscriptions become the customer's preferred buying method, there's really no way to avoid it and expect to survive. Brands can try to compete on service and experience, but in the long run, the efficiencies of the subscription model will be too hard to ignore.

Kristina: What are your top 3 tips for building a strong subscription service?

Jason: Go global, but think local

Subscriptions can be purchased anywhere on the planet. But brands need to offer a localized experience that addresses the customer's unique needs and situation. Brands need to adapt strategies to local market conditions or risk alienating their target audience.

Put customers at the center of your priorities

Brands need to understand that customers are in the driver's seat and optimize offerings around their needs. This can mean increased personalization, more flexibility to move between levels of service, or any number of other factors. But the key is to always provide an experience and service that caters to customer preferences.

Test, learn and experiment

It's rare that brands find the perfect model right out of the gate. Most companies will need to experiment with packaging, pricing and other factors before finding what works best. Don't be afraid to change things up. Leverage your consumer data successfully and it will show you the way.

Tags: Digital River, ecommerce, ecommerce trends, subscription commerce, subscription service trends

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