Subscription business models require a different set of marketing skills to keep customers happy. Chase Alderton joins Stewart Hillhouse to share the common trends he's seen across 10,000+ subscription businesses.
Who's The Guest?
👤 Name: Chase Alderton
💪 What They Do: Chase is the Growth Marketing Manager at Recharge Payments.
🧠 Best Advice: Pay attention to every single touchpoint you have with your customers. Improving the experience even slightly will reduce lost revenue and decrease churn over the long haul.
A short summary of the most actionable takeaways and best advice of the episode.
Business Models That Work Well With Reoccurring Payments
- Consumables: Coffee, soap, deodorant, cereal. Pretty much anything in your kitchen or bathroom.
- Curated Sets: Themed boxes, specialty items, curated pairings. Items that make for nice gifts but people typically buy for themselves.
- Memberships: Specific content, access to a network, insider perks. All the things that you wish you could get for free, but can't.
Pay Attention To Every Touchpoint To Avoid Churn
While making pretty Instagram feeds seems enticing, don't get lax with your communication. Ensure that every touchpoint is communicating your benefits and how the user is part of something bigger than themselves.
This goes for every touchpoint - physical or digital.
3 Steps To A Profitable Subscription Business
- The product must be amazing - make sure your product is quality and make sure it's something that people would actually value.
- Don't Guess - Know exactly who you're serving and what they need from you. Use onboarding quizzes, customer interviews, or Jobs To Be Done framework to get deep into their head.
- Ensure You Stay Fresh - Don't send them the same thing they would have already gotten. To keep existing subscribers, offer them something tangential to what you're already providing them
Commitment Is The Biggest Hurdle Marketers Need To Get Over
The customer may want to buy manually a few times before they trust that they'll want the product consistently. Education is key in teaching them how they can swap, return, or skip a shipment without outright cancelling their subscription.
Brands, People & Resources Mentioned In The Episode
Market Smarter (Without Trying)
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