#1 Decide if a subscription makes sense for your business

Think back to those questions mentioned earlier that will help you decide if a subscription is right for your business. If you’ve assessed your industry and decided that there is a need for a subscription model, whether that’s replenishment, curation, or access, it’s time to move on to the next step. 

#2 Choose your subscription products or service 

Decide what types of products to offer and what timeline subscribers can opt into to receive their subscription. Whether it’s weekly or monthly subscriptions, make sure the timeline makes sense for your products or services. 

#3 Design a membership structure and determine subscription pricing

Create a pricing strategy for your subscription that includes the products or services you’ll offer and what it will cost you to obtain them. Once you have this information, you can create a membership structure with different levels and determine pricing for each subscription level. When you initially start your subscription service, it might be wise to offer lower introductory prices to entice new customers. 

#4 Create terms and conditions 

Your subscription needs clear language for customers that explains how it works, how auto-renewal works, and how to cancel if the customer desires. It’s never a good idea to try to disguise auto-renewals or make cancellations extra difficult.

#5 Build the website

You have your subscription products, membership structure, pricing, and terms and conditions. Now, it’s time to create an attractive website that shares information about the subscription and how to sign up. There are a few key points to pay attention to when you build your website:

• Prioritise website functionality to reduce your bounce rate.

• Ensure the terms and conditions are easily accessible. 

• Provide a variety of payment options to appeal to a wider customer base.

• Make the checkout process as seamless as possible to increase conversion.

• Prepare inventory and supplies

If your subscription includes physical products, it’s time to ensure you have all the necessary supplies on hand. Work with external suppliers to build up your inventory with the quantity required for each product. 

If you plan to create the products yourself, give yourself plenty of time to build up your inventory. Consider hiring additional help if possible to have a solid supply. 

#6 Launch a marketing strategy 

Spread the word about your new subscription with a thoughtfully-designed marketing campaign. Marketing for your subscription business is a crucial step in creating a profitable model.You could start with loyal customers by sending out a drip campaign promoting an exclusive offer or a referral program.

Customer acquisition is one of the most important aspects of a successful subscription business and it’s worth investing time and money into acquiring a customer base large enough to make your business profitable.

#7 Monitor churn

Some level of voluntary churn, which is when customers cancel their subscriptions on their own accord, is normal when it comes to subscriptions. Sending a follow-up survey to find out why a customer chose to cancel their subscription can give you new ideas to improve your service. 

However, involuntary churn, which occurs as a result of payment failure or system errors, can lead to a cancelled subscription. Working with a payment service provider can reduce involuntary churn by identifying and addressing potential revenue problems.

#8 Focus on customer retention

Once your subscription service is up and running, retention should be top of mind. Test our new business ideas to delight your customers. Whether it’s a bonus surprise in their next box or an exclusive promotion for an up-sell, rewarding customer loyalty can net significant returns when it comes to retention rates.