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What is an eCommerce Subscription Service?


This is a system where you sell your services or access to your products continuously. Due to its nature, it allows you to collect payments from your customers consistently. This selling model is not a new eCommerce model. It has been around ever since the days of print. It is where magazines and newspapers sell subscriptions to their products. The only difference is that it is now integrated with eCommerce, so all transactions are now done online.

Today, subscription services are no longer limited to print media. You can now also use it to sell services in a wide variety of niches. Anything from fashion, entertainment, and even food now have subscription services that allow companies to make money monthly.

Types of Subscription Services

Before you look for ways to get more subscribers to your services, you’ll want to learn more about the different types of services you can offer. Knowing these will reveal your options, and it will also help you discern the proper model for your business.

Item or Unit-Based Subscription Service

In this type of service, you will receive something for your continuous subscription. This is most common in mystery boxes, groceries, and others. The only thing that makes it stand out from the others is that the customer usually receives an item for his continuous subscription.

Curation Service

This is a unique service where you will receive a random set of items per month to continue your subscription. It can range from skin products, toys, and even food. What makes these services

ecommerce subscriptions

Access Service

For this model, you give access to a particular service, software, or products because of the subscription. It is the most common model used for eCommerce because it is based on the access. It can even be used for tutorials and videos. Admission is only granted once the customer has paid for the service.

Now that you have learned the different models of +-eCommerce subscription, you can now select the model that best fits your business. You can also take a look at some methods of marketing. One of the most effective ways to promote your subscription-based eCommerce business is referral marketing. Here are the reasons why.

You Can Use Referral Software

One of the best reasons to use referral marketing to promote your eCommerce subscription business is the ease of use. It is just literally so easy to do when you do it with referral software. It would help if you chose software that is compatible with your website platform. So if you are running your eCommerce site on WordPress, then a WooCommerce affiliate plugin is ideal. You may also want to look for software that can work across different platforms like GetAmbassador. Whichever you choose, what matters is it is something that you are comfortable using for your business.

It Encourages Reviews

One of the keys to selling in any eCommerce platform is to have some user reviews. You will not get people to your page unless you have other people saying positive things about your business. Fortunately, referral marketing makes your eCommerce site a magnet for reviews. With it, you can get a massive boost in the social proof, which will significantly help your business.

It Attracts Influencers

Another positive benefit of referral marketing is it also attracts influencers. What makes referral marketing special is it is often done through word-of-mouth. It is also done in the person’s inner circle, such as his family and friends. The trust is already there in their relationships, which is usually the driving factor that attracts more customers to your business. Similarly, influencers will also be attracted to your business as more people talk about you. Once they see that you are not only an ordinary seller, they will be more open to promoting you to their target market.

  • Pro tip: If you have decided to get an influencer to promote you, it is essential to create an offer that they cannot refuse. Focus more on helping them and less on how they can help you. Aim to create a new relationship. It is far more critical than merely making a sale.

It Increases Customer Lifetime Value

Referral marketing is a form of marketing that is based on trust. So it inevitably attracts customers with higher lifetime value. By having a high lifetime value, your customers have a better chance of buying from you again in the future. It is often because they have found you from their family and friends, and they learned to get to know and like you. Once you are in this sweet spot, you’re in luck. You have won a customer for life.

It Can Be Easily Implemented

Another thing that you’ll love about referral marketing is it is straightforward to do. Even brand new websites like Drum Set Lab and Hunting Bow Lab were able to do it. They just installed a compatible software on their website, and they can create a referral program for their business. With a program, you can have a built-in system for your referral promotions. You no longer have to ask people to advertise you to others. You can invite them to sign up and track their performance on your dashboard.

It Can Lower Cart Abandonment

Another surprising thing about referral marketing is you can use it to lower cart abandonment. So before you fire your abandoned cart software to chase those people who left their carts, you can solve your problem by having a referral program. It would help if you leveraged other people to promote your products and services for you. You need their social proof to invite people to go back to their carts and proceed with their transactions.

Pro tip: Did you know that you can also integrate your referral program with your cart abandonment series? Just tell them about the reward they will receive once they advertise your site and proceed with their order, and you can quickly get them to come back.

Referral marketing is a gem for subscription-based eCommerce businesses. But you will only be able to see its power once you do it yourself. 

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