Understand more about recurring business, which involves innovative subscription services
The recurring business is related to the delivery of a product or service from a subscription that can be monthly, bimonthly, semi-annual or annual.
Thus, the customer pays a value within one of these periodicities and receives every week or month what he has acquired.
It is clear that the services of academies, insurance and English courses do use recurrence, since they require payment within the same frequency.
But with the advancement of the internet, the market has brought some news to consumers.
Nowadays, people can receive wines, pets, books and much more directly in their homes, just paying a monthly fee, for example.
It’s very similar to old magazine subscriptions, but now the options go way beyond that.
If you are interested in learning more about recurring business, stick around and take advantage of the information in this article.
You will understand why it is interesting to bet on the strategy, besides knowing some advantages of it for your company!
What is a recurring business?
The recurring business is the one that involves the commercialization of signatures, which can be monthly, quarterly, semiannual or annual.
Want some examples?
So let’s go!
Streaming services, such as Netflix.
Basically, it’s an online broadcast that offers a wide variety of movies, series and documentaries by simply connecting to the internet.
It also has SaaS, a software as a service that allows customers to contract plans through an affordable Marketplace.
A good example is SparkOne, a management and marketing platform that integrates financial management and CRM systems.
Another service is the Signature Club, which includes the weekly or monthly delivery of items chosen through the internet.
In Brazil there are several of them, such as wine clubs, beers, children’s books, natural foods, kits for pets, etc.
Why should you think about having a recurring business?
The recurring business is perhaps one of the most promising models of recent times.
Any product or service that has a convenience and convenience purpose may be part of the strategy.
Many companies have adapted to this new reality.
That’s it!
They have broadened their horizons by integrating a new type of service that, in the end, attracts another audience or enchants and rewards the current one.
That is exactly what happened with Wine, the world’s largest wine importer.
Its traditional e-commerce has received a new partner, the signature club, widely used by drink lovers, who love to meet on Saturday night to taste the contents of the most varied bottles received by Wine.
But after all, what do I mean by all this?
That this strategy is extremely promising and has grown considerably in recent years.
Yes, thousands of customers are interested in purchasing products and services that way, believe me.
Therefore, the company that bet on a recurring business has a very good opportunity to earn very high!
What are the advantages of recurring business?
To make it clearer the reasons to invest in a recurring business, check out a few advantages of it below!
1 — Guaranteed income
Subscription services allow billing from an exact period of payments.
Thus, you guarantee that same monthly, half-yearly or annual income (unless the customer cancels, of course).
Already in the traditional purchasing model, customers can purchase products or services only once in their store or in very diversified periods.
2 — Customer Loyalty
In the recurring business you loyalty to that customer who sees value in the products or services that it offers.
They are so important that the consumer is willing to pay a periodic subscription to receive them every week or months.
Already in the common sale, no matter how loyal you are, you will not be able to know when this customer will buy again.
For this, you may need to do a differentiated marketing job, such as an offer, for example, to take you to a new acquisition.
3 — Reaching a niche of customers
If you already have an e-commerce, you can bet that deploying a recurring business will attract one more type of customer to your company, the one that really needs to receive the products or services with certain frequency.
And the more people you serve, the more you earn!
Obviously, the e-commerce customer who already buys from you can, yes, become a consumer of recurrence, which is very interesting because that way you actually loyalty him.
But it is not good to count on it, after all, the vision of value for one and the other may be quite different.
4 — Increase billing
You will probably increase your billing if you add a recurring business to your business.
Consider that you will probably reach a larger audience, besides the one you already buy from your store, and you will be guaranteed to receive that money within the stipulated periodicity.
Did you understand more about recurring business?
But do not forget to work to keep those signatures active.
For this, it is essential that you invest in quality of service and delivery.
Remember that this customer is waiting for that product or service within the stipulated periodicity, so all care is little!
