As the global economy continues to navigate through these turbulent times, businesses are facing unprecedented challenges. With consumers cutting back on spending and companies tightening their belts, it’s natural to wonder how your business will survive. But there is a ray of hope, and that is ecommerce and Subscription Based Services. Ecommerce is going to grow during a recession, and it’s a good time to develop plans to get in on the action.
According to recent data, ecommerce sales are expected to grow by around 20% in 2023-4 and to be worth in the region of $6 trillion USD! In fact, ecommerce has been on the rise for years, and everyone knows that the pandemic has only accelerated that trend, as people stayed at home, avoiding physical stores. Ecommerce has become the go-to option for many people – and that is even more the case as winter flu season approaches.
But what does this mean for SME businesses? In a nutshell, if you’re not already investing in ecommerce, you’re missing out on a huge opportunity. By offering your products or services online, you can reach a much larger audience than you ever could in a physical store. And with the rise of subscription-based services, there’s even more potential for growth.
Subscription Services
Subscription-based services have been growing in popularity for years. From Netflix to Amazon Prime, consumers are increasingly looking for services that offer convenience and value for a flat fee. And businesses that offer subscription services are thriving. Take Dollar Shave Club, for example. In just six years, the company grew to be worth over a billion dollars, thanks in large part to its subscription-based business model.
But it’s not just consumer-focused businesses that can benefit from subscriptions services. Any online service-based business like consultants, coaches or educators can also benefit from offering their expertise on a subscription basis where users pay a regular fee to get access to expertise. Even offline-businesses, such as window cleaning, gardening, filter cleaning or other in-person service – can make use of regular recurring subscription based appointments and billing. By offering ongoing access to your knowledge or services, you can create a steady stream of revenue and build long-term relationships with your clients, schedule your time better and generally enhance your operations.
Here are some examples of subscription-based services that SMEs can offer:
Content subscriptions: SMEs that produce high-quality content, such as blogs, podcasts, or webinars, can offer subscriptions to access their content. This can be a great way to monetize your expertise and build a loyal following.
Software-as-a-service (SaaS) subscriptions: If your SME offers software that can be accessed online, you can offer SaaS subscriptions. This can be a great way to generate recurring revenue and build a predictable revenue stream.
Product subscriptions: If your SME sells products that are consumable or need to be replenished regularly, such as vitamins, pet food, or cleaning supplies, filters, you can offer product subscriptions. This can be a great way to generate recurring revenue and build a loyal customer base.
Membership subscriptions: SMEs that offer exclusive access to products, services, or events can offer membership subscriptions. This can be a great way to build a community of loyal customers and generate recurring revenue.
Consulting or coaching subscriptions: SMEs that offer consulting or coaching services can offer ongoing access to their expertise through subscription-based services. This can be a great way to build long-term relationships with clients and generate a predictable stream of revenue.
Why run a Subscription-based service
Subscription-based services are a great way for small and medium-sized enterprises (SMEs) to generate recurring revenue and build long-term relationships with their customers. Subscription-based services offer many benefits to SMEs, including:
Recurring revenue: Subscription-based services generate recurring revenue, which can help SMEs weather cash-flow challenges, manage economic downturns and stabilise income.
Predictable schedules: Subscription-based services offer a predictable schedule of actions and deliverables, which can help SMEs manage time, plan and invest for the future.
Loyal customers: Subscription-based services can help SMEs build a loyal customer base, which can be more valuable than one-time customers.
Higher profit margins: Subscription-based services often have higher profit margins than one-time sales, which can help SMEs invest in growth and innovation.
If you’re interested in offering subscription-based services for your SME, it’s important to have the right systems and processes in place to manage your subscribers. Purple Dog already works with a number of clients that utilise subscription-based services. We know the kind of things SMEs need to do in order to streamline a subscription offering and grow their business. Contact us today to learn more what you’ll need to succeed.
So why should you be considering subscriptions for your business? Because it’s a proven model for growth. By building a subscriber base, you can create a steady stream of income that can help you weather economic downturns. And as your subscriber base grows, so does your revenue. Plus, subscription-based services often have higher profit margins than one-time sales, which means you can invest more in your business and continue to grow.
If you’re interested in learning more about subscription-based services and how they can benefit your business, Sol Harris of Purple Dog is here to help. Purple Dog is a provider of subscription management software that can SMEs to manage subscribers, automate billing and invoicing, and get the insights needed to make informed decisions about where the subscription-based business is going.
In conclusion, while ecommerce has steadily been growing – there will be increasing opportunities during economic recession, or indeed – during winter weather, or times of increased flu or other outbreaks.
Now is a good time to start investing in your future plans. By offering subscription-based services, you can create a steady stream of revenue and grow your business over the long term. By partnering with Purple Dog, you’ll be able to easily manage your subscriptions and take your business to the next level.
Contact Purple Dog today to learn more.
Find Out More
