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You got this far as a small business owner by seeking out different avenues and strategies for your company.
However, there is one avenue you probably haven’t considered adjusting since you first planned it: your business model. It’s all-encompassing. It’s brought you success up to this point, but, it too can be made better.
Changing it to a subscription-based business model could provide a bit more value your customers are in search of. Here are several reasons why a subscription-based business model is the right move for your small business.
1. More Room for Adjustments
Few companies are allowed the liberty and freedom to adjust their methods of service on-the-fly. Having your customers pay product by product makes it challenging to switch things up.
Rather, having a subscription service would give you more time and room to tweak your services to fit the needs of your customers.
For example, if you’re an IT service company, then you undoubtedly have clients that purchased your service to monitor their network for safety hazards.
However, now they’re growing and want your service to help them make the necessary adjustments and hit the ground running with a new system. If you were a subscription service, you could make the necessary adjustments to fit their needs.
Being able to adjust your service to the client’s every need will create an irreplaceable image for your brand and services. Your customers will know they can’t go about their business without your flexibility.
2. Recurring Payments
Not many other business models allow you to lock in a client’s payments for a year or two at a time.
One of the best assets in all of the subscription-based model is the ability to have recurring revenue coming in from your clients. It provides a scale for your business.
It also helps your company to budget for the next year or two with a firm idea of what money it’ll be working with. Fewer projections are required for your accounting team to prepare a balance sheet for your future.
Recurring payments are also a tremendous value for your clients. Setting it up means no need for them to worry about taking the time to pay you each month.
They simply tell you which account or card they want it charged to each month and it’ll be on its way at the same time every four weeks.
Building a common understanding of when and how the payments will be made allows you and your customers to grow a relationship. It puts the financial aspect to the side so that you can focus on providing them with a service they really need.
3. Shifts Focus on the Relationship
Having a subscription-based business model will show your clients that you’re committed to forming a longterm relationship with them.
You want to be with them as they grow and expand, setting them up with a subscription way of paying will shift the focus on your service. Simply set up the monthly method of payment and you won’t speak of it again until it’s time to renew.
From then on, it’s solely focused on providing excellent customer service and helping their business excel in your area of expertise.
No longer will they need to worry about having the experience or know-how in an industry they’re unfamiliar with. Your service will make sure they never lose sleep over that again.
This also helps clear your mind as well. The payment has been set up and they’re committed to your service for the foreseeable future.
Now you just need to focus on striving for greatness. How do you want each customer to perceive your way of business? What aspects do you want to stand out to them? Your experience, your customer service, or your communication?
Thanks to the payments being taken care of, you can focus on answering that question and becoming the service leader in your industry.
4. Opportunities for Discounts
If you choose to use a subscription-based business model, you can offer a plethora of different ways to get your customers in the door.
For example, if you’re currently struggling to attract new leads to your service, offering a free trial will help customers see value in your service. It shows that you’re willing to stake everything on the quality of your business.
You can also provide discounts for customers that choose to pay for the duration of your service up-front. So if your subscriptions run annually, then the client can receive a discount for paying the full amount upfront.
If somehow that’s still not causing them to run through the door for your service, you would be able to provide coupons for either your service or a higher tier of service that you offer.
This route will help provide your brand with a level of transparency that clients are in dire need of. Anytime they can hook up with a wholesome business at a fair price, they’ll do so!
Read this article to learn more about the discounts you can offer your clients by using a subscription-based business model.
Strategize a Subscription-Based Business Model for Your Business
Now that you’ve seen all the benefits to a subscription-based business model, it’s time to find a way of incorporating that to your products today.
That may be the determining factor to push more clients to invest in your services than ever before! Be sure to read up on our other articles for helpful information and tips on both business and lifestyle.