Ecommerce subscription models can help brands ensure recurring revenue and predict sales

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 03, 2020, 1:33 AM UTC

Brands must select the right subscription model according to their products, goals and capabilities.

Developing an ecommerce subscription model can help offer convenience to consumers while providing brands with the benefit of recurring income. Brands can plan inventory, forecast sales, reduce acquisition costs, and scale their businesses with subscription models, as it relies on predictable monthly recurring revenue.

The article states that the recurring nature of a subscription model can help brands assess consumers' behaviour and offer them with personalised products and experiences. This allows brands to leverage upselling and cross-selling opportunities and increase sales from existing consumers.

Curation subscription models are curated products by the brand and are highly profitable while replenishment models ensure continuity of cash flow and have high retention rates. Brands can also follow the hybrid approach to add subscription models to their existing business.

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