What to know before bringing a subscription product in the market.
A THREAD ⬇️
*These insights are from a meetup with @TheTannedDon hosted by us.
He shared with us lessons from building successful subscription products at @Zomato and also included examples of other products.
A full blog on this is coming 🔜
Here's the summary for you👇🏻
1. A subscription model is not a #rewards scheme.
In a rewards scheme, customers get benefits after a certain number of purchases. While in a subscription model, customers get benefits only when they pay a membership fee.
2. Subscription products help in understanding the customers better by closely analysing their behaviour and habits.
It also helps in gaining predictable revenue.
3. Introduce subscription products only if you see they will remove existing barriers between the customer and your product.
4. Create a #FOMO by offering subscribers more than regular customers.
In @Zomato 's case, they offered 1+1 on drinks and 2+2 on food in restaurants for their members.
Like @netflix did with their movies and shows.
5. When consumers see the benefit in the subscription product, they consume more, and more often.
And that's exactly what you want them to do.
6. Price your subscription keeping in mind the ROI of the customer.
The thumb rule here is to charge no more than 4 sales.
The customer won't see the value in your product if he doesn't receive the ROI within 3-4 sales. See how @amazon prime has priced its product.
7. Key points to remember:
•Experiment with your subscription product in the start
• Make different strategies for different markets
• DON'T complicate your product. Keep it SIMPLE.
8. Introducing subscription products in the time of crises:
• Have a sachet approach like @Medium
• Don't introduce a new product, promote existing ones
• Give more freebies and trial packs
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