The last couple of years have seen the rise of subscription box services targeting users in different niches including fashion, crafts, and food. The success of most subscription services is on the revenue generated by users over their lifetime. What lessons can you learn from other Subscription Box Services?
Subscription box services have to keep their cost of acquiring customers (CAC) and churn low to generate good profits. However, getting users is usually a tough nut to crack. You can go for paid offline advertising, pay per click and other inbound marketing techniques to generate traffic and paying customers. However, if you are looking to acquire a large user base within a short period and without high expenses, you have to go viral. How do you do this?
Coupons and Social Media
For any product to go viral, users must love and want to share it with their networks. Therefore, before you start planning how to promote your product, make sure it is unique and something that your market will love. Subscription box businesses work best when they are targeting a particular niche. LootCrate, Umba Box and For the Makers target users who love art, geeky or etsy stuff, Knosbox and La Bella Box offer adult gifts while BabbaBox, Wonder Box, Kiwi Crate, Green Kid Crafts and Little Passports offer children’s gifts.
After identifying a market that is ready to subscribe to your service, you need to offer a great experience to make users want stick and tell their social connectors about you. One way of achieving this is to use gifting coupons. The universal unique selling point of subscription boxes is that users get high quality items at bargain prices.
When you offer gifting coupons, users will be enticed to purchase gifts for their loved ones and in essence improving your brand reputation. By offering gift coupons, you will be giving users twice the value they were expecting. This can make them share your service on social networks, which will in turn grow your user base.
Connect with Influencers in Industry
Another potential way of making your subscription box business go viral is to connect with influencers in your industry. These can be product evangelist or bloggers with huge number of readers that can promote your service. Your job is to connect with the influencers and get your product to them.
A good way of doing this is to invite them for the beta testing phase to use your services. The influencers can have a tremendous impact in making our service known when they write about it on their blogs, talk about it on Facebook and Twitter or send messages to their email list.
Video marketing can also make your box subscription service go viral. Creating a unique video that is funny, interesting or absurd is sure to catch the attention of viewers and generate buzz. Create a high quality video and determine the angle that you will take to capture interest of your audience. For example, you can leverage on an existing trend or use a catchy phrase like Chuck Testa of the Nope! Chuck Testa fame.
Like any subscription business, the number of users that sign up for your service is crucial to breaking even. You also have to keep churn at a minimal and lower your cost of acquiring customers to keep your business in good health. Providing value and exceptional support to your customer is important for your business to achieve its revenue objectives.