In recent years, subscription-based businesses have become increasingly popular. It’s believed that the online subscription industry will be valued at around $2.3 trillion by 2028. While much of this revenue comes from major companies like Netflix, Disney, and various eCommerce corporations, smaller businesses are also benefiting from providing customers with subscriptions.

By offering customers a more convenient solution, businesses benefit from consistent, recurring revenue. Many subscriptions are available on a monthly basis. Subscriptions are currently available for everything from grocery deliveries to web development.

If you’re looking to start your own subscription service, it’s recommended that you learn about what this business model involves and how to start one. In this guide, you’ll discover how to build a subscription based website.

Understanding the Subscription Business Model

Subscription-based businesses provide customers with services or products on a recurring basis. Customers must continue making payments to maintain their subscriptions as well as the features they come with. Businesses that use this model receive a consistent stream of revenue. Customers enjoy using subscriptions because they offer more value, convenience, and personalization options.

To understand how the subscription process works, customers begin by signing up for an account via an online platform. They must then provide payment information to allow the company to make recurring charges every month or quarter. As long as payments are made on time, the company is responsible for consistently delivering a service or product, which could be anything from physical goods to digital content.

Companies are also tasked with handling subscription renewals and cancellations. This business model typically relies on maintaining long-term customer relationships. The most valuable customer is someone who ends up subscribing for years. When building a subscription-based business, focus on keeping customers engaged to minimize the number of people who cancel their subscriptions. There are many reasons why companies should use the subscription model, which include the following:

• Higher cash reserves from consistent revenue
• Lower customer acquisition expenses
• Easy financial planning, which allows for accurate revenue forecasts
• More upselling opportunities
• Better relationships with customers
• Improved customer insights
• Efficient inventory management

There are numerous examples of successful subscription businesses. Netflix is among the most popular subscription-based businesses around. This streaming service currently boasts more than 282 million subscribers. Each subscriber makes a monthly payment that Netflix can use to bolster its cash reserves or pay for more content.

A couple of additional examples of effective subscription businesses include Spotify and Amazon Prime. Spotify is a digital music service that allows users to stream music from any location. Amazon Prime provides customers with many benefits, which include free two-day delivery, free grocery delivery, and access to Prime Video. The service also offers medical care and prescription benefits.

Planning Your Subscription-Based Business

From the initial market research to business model considerations, there are several things you need to focus on when planning your subscription-based business.

Market Research

Market research is necessary to understand your target audience and their needs. Subscription-based businesses rely on high customer retention, which is why market research can dictate how successful you are. This research will provide you with insights into customer pain points and the competitive landscape.

Once you identify your competitors, analyze their offerings to determine how you can improve on them. Look for a niche that your service can fill. You can test the concept for your subscription with focus groups, a minimum viable product (MVP), and surveys.

Defining Your Value Proposition

Before you decide how customers will pay for your services or products, identify the unique selling points of your subscription offering. How does your service stand out from the competition?

Business Model Considerations

When creating a business plan, make sure you outline the specific model you’d like to use. There are numerous business models to select from, which include freemium, tiered, or bundled. With a freemium model, you can provide customers with a basic version of your service for free. They can also choose to access other tiers and packages that have more features.

For example, Netflix has three tiers, which include standard with ads, standard, and premium. The standard package allows you to watch unlimited ad-free TV shows and movies for $15.49 per month. However, the video quality is capped at 1080p. Customers are also limited to watching from two devices at once. The premium tier provides access to 4K video streaming while also allowing four devices to use Netflix at the same time. This tier costs $22.99 per month.

Once you identify the type of subscription model you’d like to use, it’s important that you set a competitive pricing strategy. Research the competition to make sure you don’t price your subscription service too high.

Choosing the Right Platform for Your Subscription Website

Now that you’ve planned your subscription service, you need to choose the right platform for your website. This process doesn’t need to be complicated. Platforms like WooCommerce, Shopify, and Subbly give you the tools you need to develop a website even if you don’t have technical skills.

Platform Options

While there are many platforms available to you when you’re learning how to start a subscription based business, a few of the more popular options include Shopify, WordPress with WooCommerce, and Subbly. You can use these platforms to build a website with user profiles, accounts, and membership options.

Subbly is a platform that’s dedicated to subscription businesses. When you use Subbly to develop your website, you’ll benefit from affordable plans, growth-friendly pricing, and 24/7 support. The main drawback is that it doesn’t support as many integrations as other platforms.

WordPress with WooCommerce is a type of eCommerce plugin that’s available for websites that are powered by WordPress. You can use this plugin to build and manage a subscription business. You’ll gain access to more than 1,000 integrations. This service is also suitable for people who already have WordPress websites. A couple of issues with WooCommerce include a lack of 24/7 customer support and high costs.

As for Shopify, it’s currently the go-to website for businesses that wish to design eCommerce stores. This platform comes with an easy-to-use interface, 24/7 customer support, scalability, marketing support, and a comprehensive app store. There are, however, a few downsides. For example, many of the apps and plugins are paid even though the subscription comes with a monthly cost. Customizing your storefront can also be difficult.

Key Features to Look For

When you’re looking for the right platform to build your subscription website on, consider the following features:

• Recurring payment systems, such as Stripe and PayPal
• User management features like billing history and member dashboards
• Integration capabilities with other tools, such as email marketing and CRM

Building Your Subscription-Based Website

Use the steps below to start building your subscription-based website.

Designing the User Experience

First, it’s important that you provide users with an intuitive sign-up process. Create member areas and dashboards that provide value to users. Every design element should be organized to ensure users focus on the content you want them to. Include clear calls-to-action around the membership areas.

Since many users access websites from mobile devices, your subscription storefront needs to come with a responsive design that can intuitively adapt to different screen sizes. Consider providing customers with search functionality to help them find specific content.

Setting Up Payment Systems

Your subscription-based platform should also integrate payment gateways to provide potential customers with methods they can use to make a purchase. Consider gateways like PayPal, Square, and Stripe. It’s highly recommended that you offer numerous payment methods, such as digital wallets and credit cards.

Once you select a payment gateway, you’ll need to register an account before obtaining an API integration code. By embedding this code on your checkout page, customers will know how to pay.

On the backend, implement a server-side endpoint that allows you to process payments. The code should be embedded directly in a server file. Test the integration before you take it online. Depending on the nature of your business, this is a good time to place subscription plans and pricing tiers on your website.

Content Delivery and Access Control

To effectively organize and manage content, you must have a powerful content management system (CMS). This tool includes features like scheduling and content uploading that allow you to continuously provide your customers with new and relevant content.

Place access controls on your website to ensure only specific members of your staff can input and edit content. It’s also a good idea to set up digital rights management for any protected content you have. This technology allows you to manage access to copyrighted content.

Marketing Your Subscription-Based Business

Once your store is built, start marketing your subscription-based business. With the right marketing strategies, you can advertise your subscription service to your target audience.

Building a Marketing Strategy

Create targeted content for different customer segments. For example, some segments of your audience will enjoy reading blog posts and email newsletters. Younger customer segments will likely be drawn to video content. It’s also a good idea to use social media to promote your service. Post regular updates to keep customers engaged. Social media is also a great place to post sales and promotions.

Building an Email List

Targeted marketing requires building and segmenting an email list. This list gives you direct access to people who have already shown interest in your business and brand. You’ll also have more control over who receives your marketing materials. Customize these materials for better and more targeted results. To grow your email list, consider offering free trials and exclusive content to subscribers.

Utilizing Influencers and Partnerships

You can significantly increase your subscription numbers by collaborating with influencers to reach a larger audience. While this is less targeted than other marketing methods, it can be more effective. Consider partnering with complementary businesses to offer joint promotions.

Scaling Your Subscription-Based Business

Once you’ve built your subscription-based business, you need to find ways to grow it, which might require you to expand your offerings.

Managing Growth

Once the demand for your subscription begins to grow, you need enough resources to handle it. Your website should be built on scaling infrastructure that can grow alongside your company. It’s also recommended that you hire additional staff to ensure the quality of your service doesn’t suffer. Effectively managing growth is necessary to keep customer satisfaction high as your business scales.

Expanding Your Offerings

Consider expanding your offerings by adding new content, services, or features that might attract more subscribers. If you aren’t retaining as much of your audience as you’d like, test new pricing models to discover what works best for your customers.

Maintaining Long-Term Subscriber Retention

To maintain long-term subscriber retention, you may want to implement loyalty programs or rewards. For example, customers could receive points for every consecutive month that they’re subscribed. Eventually, they can use these points to purchase rewards, which should keep them subscribed. Regularly engage with your customers through feedback forms and surveys to improve your service.

Conclusion

Building and growing a subscription-based business requires selecting the ideal model, choosing the right platform, and setting an appealing pricing structure. You can then focus on developing a website that allows customers to purchase subscriptions and access content with ease.

To ensure success in the competitive subscription marketplace, provide customers with reasons to stay engaged with your business and brand. You’ll want to start small. Test your ideas before you take everything online. Adapt your offerings or pricing structure based on customer feedback.