3 marketing hacks for a subscription based business
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In this webinar, we will look into 3 simple marketing hacks that will turn your business into a subscription service.
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3 marketing hacks for a subscription based business
- 1. Pam Cheing Marketing Manager Pam is the Marketing Manager at Ezypay; is interested in SEO, Google Analytics and contributing to the coffee and bacon economy. Meera Krishnan Website Developer & Designer Meera is the Web Developer and Designer at Ezypay, who has loads of amazing ideas and likes to explore new technology. 3 MARKETING HACKS TO TURN ANY BUSINESS INTO A SUBSCRIPTION SERVICE
- 3. Sydney
- 5. AUSTRALIA NEW ZEALAND SINGAPORE MALAYSIA THE PHILIPPINES HONG KONG TAIWAN CHINA
- 8. Pam Cheing Marketing Manager Pam is the Marketing Manager at Ezypay; is interested in SEO, Google Analytics and contributing to the coffee and bacon economy. Meera Krishnan Website Developer & Designer Meera is the Web Developer and Designer at Ezypay, who has loads of amazing ideas and likes to explore new technology. 3 MARKETING HACKS TO TURN ANY BUSINESS INTO A SUBSCRIPTION SERVICE
- 9. Pam Cheing Marketing Manager Pam is the Marketing Manager at Ezypay; is interested in SEO, Google Analytics and contributing to the coffee and bacon economy. Meera Krishnan Website Developer & Designer Meera is the Web Developer and Designer at Ezypay, who has loads of amazing ideas and likes to explore new technology. 3 MARKETING HACKS TO TURN ANY BUSINESS INTO A SUBSCRIPTION SERVICE
- 10. Increase your SALES REVENUE in the next 12 months by at least 40%
- 11. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A What we will cover today
- 12. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A What we will cover today
- 13. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A What we will cover today
- 14. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A What we will cover today
- 15. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A What we will cover today
- 16. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A What we will cover today
- 17. Something we’ve tested and refined over twenty years of being in the subscription business Some brought us good results while others were colossal failures Share ideas that we tried and actually worked for us Balance increasing the revenue VS retaining more customers DISCLAIMER
- 18. Transactional Model Converting into a subscription-based business modelHACK 1
- 19. The Difference HACK 1 Subscription BasedVS ACCESS Transactional Converting into a subscription-based business model
- 20. Converting Into A Subscription-Based Business Model Subscription-BasedTransactional HACK 1 Converting into a subscription-based business model
- 21. Why Subscription-Based Business Model HACK 1 Promotes cash flow The monthly price tends to be lower than a standard transactional price Converting into a subscription-based business model
- 22. Why Subscription-Based Business Model HACK 1 Promotes cash flow The monthly price tends to be lower than a standard transactional price Consumers have better ownership Customers can choose a variety of services or product from the package as and when it suits their needs Converting into a subscription-based business model
- 23. Why Subscription-Based Business Model HACK 1 Promotes cash flow The monthly price tends to be lower than a standard transactional price Consumers have better ownership Customers can choose a variety of services or product from the package as and when it suits their needs Retains customers By building an online community, you give your customers a reason to keep coming back for more. Converting into a subscription-based business model
- 24. 5 Major Types Of Subscription-Based Business HACK 1 Digital subscriptions Social networks Small businesses that build connection with their customers Non-profits and trade associations Loyalty programs Converting into a subscription-based business model
- 25. Setting The Foundation HACK 1 =BUSINESS Digital Subscription Loyalty Program Online Community Local Community Other Combination Converting into a subscription-based business model
- 26. Your Team HACK 1 Transaction Subscription-based CEO Product driven Relationship driven Product Team Big releases Regular iterations Sales Big game hunting Farming Support Minimizing anger Maximize loyalty Marketing One-way communication Two-way communication IT & Operations Custom solutions, requiring plenty of in-house staff Outsourcing non core requirements, leveraging on the cloud and avoiding customisation Converting into a subscription-based business model
- 27. You Need To HACK 1 Empower your frontline staff to be able to recognize your members as individuals and take good care of them Invest Measure Rethink Promote Converting into a subscription-based business model
- 28. You Need To HACK 1 Empower Invest in your community and the people to manage the relationships and ensure their success Measure Rethink Promote Converting into a subscription-based business model
- 29. You Need To HACK 1 Empower Invest Measure the success of salespeople not by the transaction value but on the basis of customer lifetime value Rethink Promote Converting into a subscription-based business model
- 30. You Need To HACK 1 Empower Invest Measure Rethink how you quantify customer satisfaction and quality support Promote Converting into a subscription-based business model
- 31. You Need To HACK 1 Empower Invest Measure Rethink Promote a culture of marketing innovation because it is now no more enough to just stick to key types of campaigns and activities Converting into a subscription-based business model
- 32. A Typical Sales Funnel HACK 1 Aware Trial Sign Up Loyal Members Total Available Market Aware but not engaged Happy Customers Converting into a subscription-based business model
- 33. Subscription-Based Funnel HACK 1 Total Available Market Marketing done for you! Aware Trial Sign Up Loyal Members Increasing Engagement (CLV) Referral Source Forever Transaction Converting into a subscription-based business model
- 34. If The Price Is Right HACK 2 You’ll be able to predict your cash flow better Pricing for a subscription-based business is not as simple as it seems Create the right pricing strategy
- 35. 4 Revenue Streams HACK 2 1. Subscription • Most people prefer to have three pricing options • Most likely to choose the middle option • Price according to the value your customer receives • Be prepared to adjust the pricing 2. A La Carte Services 3. Supplementary Products 4. Partnership Streams Create the right pricing strategy
- 36. 4 Revenue Streams HACK 2 1. Subscription 2. A La Carte Services • Once-off, special products or services • Don’t automatically add on these services into higher tier pricing 3. Supplementary Products 4. Partnership Streams Create the right pricing strategy
- 37. 4 Revenue Streams HACK 2 1. Subscription 2. A La Carte Services 3. Supplementary Products • Offer additional products that make sense and add value to your service or product 4. Partnership Streams Create the right pricing strategy
- 38. 4 Revenue Streams HACK 2 1. Subscription 2. A La Carte Services 3. Supplementary Products 4. Partnership Streams • Effective and money-saving method of increasing your income and increasing the value of your service without much investment Create the right pricing strategy
- 39. FREEBIE or FREEMIUM? HACK 2 Create the right pricing strategy We offer free stuff to build interest and to showcase the value of their product or service When would be the best time to offer something for free or a freemium? WHAT IS THE DIFFERENCE?
- 40. We offer free stuff to build interest and to showcase the value of their product or service When would be the best time to offer something for free or a freemium? WHAT IS THE DIFFERENCE? FREEBIE • Offers the full experience FREEMIUM • Offers the most basic subscription level • Meant to build awareness • Build a community of users FREEBIE or FREEMIUM? HACK 2 Create the right pricing strategy
- 41. FREEBIE or FREEMIUM? HACK 2 Create the right pricing strategy The danger of providing a freemium is that you may find it challenging to convert majority of users into paying customers. It is a good idea if having more users can add more value to your business.
- 42. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A Recap
- 43. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A Recap
- 44. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A Recap
- 45. HACK 1 Converting into a subscription-based business model HACK 2 Create the Right Pricing Strategy HACK 3 Use the right technology HACK 4 BONUS Q&A Recap
- 46. Using The Right Technology HACK 3 Use the right technology 1. Marketing Automation • Helps you keep track and measure the performance of different levels in your sales funnel • If the customer leaves, you can device campaigns to win them back 2. A Good CRM 3. Subscription-Based Billing System 4. Customer Success Tracker
- 47. Using The Right Technology HACK 3 Use the right technology 1. Marketing Automation 2. A Good CRM 3. Subscription-Based Billing System 4. Customer Success Tracker Marketing Sales Customer Support Lead Convert to Customer Retain Customer
- 48. Using The Right Technology HACK 3 Use the right technology 1. Marketing Automation 2. A Good CRM 3. Subscription-Based Billing System • Create payment plans that make sense to their industry • Automated to collect payments every day, week or month 4. Customer Success Tracker
- 49. Using The Right Technology HACK 3 Use the right technology 1. Marketing Automation 2. A Good CRM 3. Subscription-Based Billing System 4. Customer Success Tracker • The happier your customers are, the higher the likelihood of retention.
- 50. Conclusion Hire more people Hire new talent Investing more into your business Right mindset Right price Right tools
- 51. Passive Churn HACK 4 BONUS – Passive Churn Occurs when a business loses members not because of a bad product or service, but simply because the customer had a bad payment transaction.
- 52. Failed Payment HACK 4 BONUS – Passive Churn Insufficient funds Expired credit card Cancelled credit card
- 53. Established standard procedures in handling failed transactions Automated process Fully trained customer support team
- 54. Q&A
Editor's Notes
- Thanks Pam for the introduction and thank you to everybody who’s watching this webinar. It’s an honour for me to be the one presenting this webinar today.
- why every business will eventually convert into a subscription-based business model. the first essential step you must apply to your business to make it subscription-based friendly In other words, turning strangers into customers or long term patrons of your business.
- How to Create the Right Pricing Strategy to sell your subscriptions like crazy.
- The right technology to support and scale your subscription business without having to invest more money or manpower into your business.
- Is a surprise for you. Stay till the end to hear about it
- Finally we’ll close with a brief Q&A. If you have any questions along the way, do type them in the question box that is available and we will address them later.
- Before we start, I just want to make a quick disclaimer
- Most businesses around the world work on a transactional model. For example, you might buy one movie ticket to watch a great movie or purchase a yoga matt to do pilates at home. Your customers only pay once for the experience of doing business with you.
- The key difference between a transactional and subscription-based business is the word: ACCESS.
- Instead of only paying to watch one movie per transaction in a traditional business model, In a subscription based model like Netflix for example, with one flat fee for login access, the customer has access to thousands of movies and TV series from different countries and genres.
- So … why again should I consider making my business subscription based? Well, for starters .. it Promotes Cash Flow Monthly price tend to be lower than a standard transactional price. I’d rather pay less and try if something works for me than pay a lump sum and find out that it does not suit me at all.
- 2. Customers have better ownership Customers can choose a variety of services or products from the package as and when it suits them. For example, when I purchased plan A, got was able to do task 1 to 5, which at that point suited my business needs. But now that my business has grown, I need to focus on task 6-10, which can be done by subscribing to plan B for a slightly higher rate.
- 3. Retains customers businesses that runs on subscriptions gives your customers a reason to keep coming back to your for more the Internet has also made it easy for you to build a community and brand yourself towards your target market.
- Now that you know the benefits of a subscription based business model, you might be wondering …. What examples are there that I can emulate. Here are 5 major types that we see everyday. Digital subscriptions includes businesses built on SaaS, such as Dropbox and Pandora where people pay for access to a service Social networks such as Facebook or LinkedIn that connect people with the same interests together and requires payment for ads Loyalty programs such as your flier points or a Starbucks card where you get your reward afterwards like a much needed year end bonus before the holidays. Small businesses that build connection with their customers Cupcake Chic a local bakery in Malaysia sells cupcake but they also have a blog that highlights latest events or functions where their cupcake was served. Non-profits and trade associations UNICEF that allows monthly donations to be debited from you account
- Your business can be a combination of a digital subscription, loyalty program, online community, local community or a combination of any of the business types and it will do well.
- What also will determine the success of your business is your team and your work culture. Where is a subscription based business, everything is customer and relationship centric. Once you embrace the new way of marketing to your customers, your job instantly becomes easier because you’ll only have to make a single transaction to win a customer for life, instead of investing your resources on repeatedly trying to sell over and over again to that one customer.
- As the leader of the pack, you need to
- Of course, this sounds great in theory but then how would one even go about this? Let’s talk about the typical sales funnel that looks like this: At the top are people who are aware of your brand but are not engaged with it yet. At the bottom are your customers who you hope will maintain an ongoing, healthy relationship with your business. The problem with this traditional model is that there is a lot of waste as your sales and marketing team spend more time promoting your business to so many people who will never become your customers.
- This funnel shows that sales and marketing teams need to track more than just the number of people converting from trial awareness to trial stages to signing up. They’re also gauging to see how many actual customers are on-boarded correctly, become loyal members and continue to stay engaged with the brand. Higher engagement levels will encourage your customers to promote your brand to their family and friends, effectively becoming your referral source which is then channeled into the top of the funnel again. By measuring each of these levels, you’ll be able to tell if you’re offering your prospects the right product with the right value and you’ll be surprised with how many businesses rush ahead with building customer acquisition programs without really thinking long-term about what happens after a customer subscribes. So the first thing you need to do after this session is to create your own funnel and think about how you would measure each level because the last thing you want to do for your business is acquire a customer who’s going to leave quickly and cost you money. Once you have your funnel, you can then determine the types of campaign you’d like to run with the funnel as your success metric.
- The best part about having a business with a subscription-based model is that you’ll be able to predict your cash flow better as you’ll be receiving recurring income every month. The downside is that pricing for a subscription-based business isn’t as simple as charging $10 for a product that costs $5 to manufacture. Most people view subscription-based models as the chance to create a revenue opportunity only once in a lifetime for each customer, but we’ll share with you the 4 different revenue streams any business can tap right into even with a subscription-based model.
- The first and most obvious one being subscriptions. To keep things simple, some businesses offer a single subscription price and offering but some studies on pricing research have also shown that most people prefer to have three pricing options and that they are most likely to choose the middle option. Whichever method you choose, always price according to the value your customer receives and be prepared to adjust the pricing so you’ll always stay relevant to the market. Otherwise, you’ll risk losing customers during external events such as when a credit card expires or when an alternative product at a much lower price is introduced into the market.
- These are once-off, special products or services that your business may offer your subscription-based customers. For example, gym may offer a health check session during the New Year. What you don’t want to do is automatically add on these services into higher tier pricing because not all customers would understandably see value in add-ons like these.
- The keyword to selling supplementary products is to offer additional products that make sense and add value to your service or product. Skype sells headsets, gyms sells towels and protein shakes and tourist areas sell souvenirs or mementos to enhance the buyer’s experience.
- Forming partnerships with businesses that can offer additional value to your target market is an effective and money-saving method of increasing your income and increasing the value of your service without much investment. A gym could offer dry cleaning services while members work out and Starbucks has done this beautifully by partnering with Spotify to offer Spotify premium accounts to 60 million members of the Starbucks Rewards Program, accessible only via the Starbucks app on their phones.
- We offer free stuff all the time in marketing, mostly free content like this webinar to build interest for Ezypay. A freebie makes sense for businesses that want to showcase the value of their product or service. The question now would be when would be the best time to offer something for free or a freemium. And what is the difference?
- A good freebie is to make sure that you offer the full experience of using your product A freemium offers the most basic subscription level The point is to build awareness and hopefully a community of users that will go viral.
- The danger of providing a freemium is that you may find it challenging to convert majority of users into paying customers. If you offer too much value in the free offering, members have no incentive to upgrade and yet if you don’t offer enough value in your freemium package, you might not attract your target market. A good rule of thumb is that if your business is a necessity and not a luxury then you shouldn’t offer a freemium package as this could lower the value of your product and cannibalize your paid offering. A freemium is a good idea if having more users can add more value to your business. For example, if you had an app and by granting everyone free access to the app, you could create more content and form a healthy community around the app.
- Allright.. Let’s do a recap
- So far we’ve talked about re-thinking the way your organisation and sales funnel works,
- we also talked about the strategies on how to price your product just right and balancing it against free services to generate more income.
- The third hack to transforming your business into a subscription-based model is learning how to use the right tools to support your business model.
- There are 4 key technologies any successful subscription-based business model must have to support the needs of your business, from customer engagement to billing. Marketing automation is important because it helps you keep track and measure the performance of different levels in your sales funnel, like what we talked about earlier. it helps keep your customers in the funnel longer and even if the customer leaves, and even devise strategies to win them back later.
- is a good complement to a your marketing automation tool provides a way to tracking customer interactions between the sales, marketing and customer support team. Marketing brings in the lead, Sales converts to a customer Customer Support retains them
- All subscription-based businesses require a reliable subscription-based billing system and there’s not many like Ezypay that can support any kind of pricing model or multiple currencies. A payment provider like Ezypay allows business users to create payment plans that make sense to their industry it’s automated, in real-time and you won’t have to worry about having to manually collect payments every day, week or month.
- Customer success trackers are important, as can be seen from the hourglass sales funnel. The happier your customers are, the higher the likelihood of retention versus un-engaged customers who are far likelier to leave if they cannot understand the benefits of your product or service.
- So essentially what we are saying is this – thanks to the accessible technology that we have today, adapting to the subscription-based model doesn’t mean having to hire more people, new talent or investing more into your business. With the right mindset, the right price and the right tools to support your business, any business can be a successful subscription-based business and enjoy regular, compounding profits every month.
- Before we end this web session, I’d like to share with you one industry secret on why many businesses lose customers, and that’s due to passive churn. Passive churn occurs when a business loses members not because of a bad product or service, but simply because the customer had a bad payment transaction.
- A failed payment is very likely due to insufficient funds, an expired or cancelled credit card. Credit cards can be cancelled for a few reasons, the most common being upgrading the card for better rates or fear of fraudulent activity. What causes passive churn is the friction that usually happens between the customer and the business when it comes to handling such situations.
- The reason why Ezypay has had a successful track record of 99.5% payment collection is because we’ve already established standard procedures in handling failed transactions in the past twenty years and the process is also automated because we always discourage our merchants from directly contacting their customers about billing issues. Our customer support team is trained to amicably handle such billing matters because we understand that customer retention and loyalty is the direct solution to avoiding active churn, which is when the customer actively tries to cancel their subscription to your business.
- And that brings us to the very end of this webinar. Thank you for watching and stay logged on if you would like to participate in the Q&A just in case you would like to know more about Ezypay and how we can help you generate more cash flow for your business with subscription billing.