Should Your Business Be Subscription Based? With Ben Fisher, CEO of Rodeo
Dec 5, 2023
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Ben Fisher, CEO of Rodeo, discusses the pros and cons of subscription-based business models. They explore topics like dealing with churn and retention rates, increasing revenue through subscriptions, and the challenges of matching consumption with replenishment intervals. They also talk about surprising and delighting customers in retention strategies and mention standout marketers in the industry.
Prioritize a positive customer experience and focus on customer needs and preferences to foster loyalty and retention.
Offer subscription flexibility and avoid excessive discounting while incorporating additional perks to increase customer retention.
Deep dives
Importance of Creating a Positive Subscription Experience
Building a successful business off of customer subscriptions requires prioritizing a positive customer experience. Unlike Amazon or HBO, where customers forget and receive their products, the tangible nature of consumer packaged goods (CPG) makes subscription reminders more impactful. The key is to provide a subscription service that adds value and avoids overwhelming customers with unwanted products. By focusing on customer needs and preferences, brands can foster loyalty and retention.
Value in Offering Subscription Flexibility
Subscription expert Ben Fisher highlights the importance of offering subscription flexibility. While traditional subscriptions automatically charge customers every month, this approach may not suit everyone's needs. Instead, brands can employ an on-demand model that allows customers more control over their purchases. By utilizing reminders and proactive follow-ups, brands can still maintain predictability while ensuring customers feel empowered and in control of their buying decisions.
The Efficacy of Discounts in Subscriptions
When it comes to subscription-based revenue, brands must be cautious about excessive discounting. Offering steep discounts may attract customers who are solely interested in the reduced price, resulting in high churn rates. It's important to focus on the value and benefits beyond just the discount itself. Incorporating additional perks like exclusive products, digital content, or partnerships can enhance the subscription experience and increase customer retention.
Unlocking Revenue with Innovative Marketing Approaches
Increasing revenue through subscriptions involves exploring various marketing approaches to unlock new opportunities. Brands should experiment with strategies like user-generated content, testimonials, and loyalty programs to engage and retain customers. However, it's crucial to avoid overusing these tactics and maintain a thoughtful and customer-centric approach. By constantly evaluating and adapting marketing strategies, brands can foster customer loyalty and drive sustainable growth.
In this Retain: The Customer Retention Podcast episode, Lauren DeSouza speaks with Ben Fisher, CEO of Rodeo. Together, they get into whether or not your business should become (or stay as) a subscription based service; how to deal with churn and retention rates; and how to increase revenue through a subscription model!
Ben is the Co-Founder and Technical CEO of Rodeo, a consumer-centric subscription platform for challenger Consumer Packaged Goods brands. As one of the leading names in the subscription space, he also hosts Subscription Radio, a podcast dedicated to understanding the nuts and bolts of subscription commerce.
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Previous guests include: Dave Kerpen, Shep Hyken, Joey Coleman, Dan Gingiss, Brittany Hodak, Ron Kaufman and Jim Tincher.