Have you considered subscription-based franchising?
Modern consumers value convenience. They have busy...
Modern consumers value convenience. They have busy lives and are digitally astute, so subscription-based franchising offers many advantages to both consumers and suppliers. Now is a great time to consider altering your current service offering and launching or joining a subscription-based franchise as there are some great benefits of doing so.
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What is a subscription-based franchise?
By purchasing a subscription, consumers receive a regular supply of goods or services of their choosing without having to remember to monitor their stock levels or re-order when needed. This adds a layer of convenience to their everyday lives and provides peace of mind that they will never run out.
There are plenty of franchise industries that can benefit from offering a subscription-based service, including beauty and wellness, software, groceries and home services.
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The benefits of subscriptions for franchisors and franchisees
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Easy financial forecasting
Because customers purchase an ongoing package of products or services instead of a one-off, business owners can better forecast their revenue and manage their cash flow.
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Loyal customer base
Customers who routinely purchase products or services from the same business quickly become loyal ambassadors for the brand, recommending it to friends and family and therefore enhancing the brand's reputation.
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Regular customer interaction
Most businesses benefit from regular customer interaction. When selling products or services on a subscription basis, the company must interact with its customers, not only meeting their obligations but also exposing them to other products and services they offer, potentially upselling or cross-selling to existing customers and generating greater profits.
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Satisfying customer demand
Modern consumers are used to purchasing subscriptions, so paying a monthly fee for regular access to products and services is something that they are familiar with and happy to engage in. Franchises are taking on very little risk by introducing subscriptions to their product range. Technology already exists to streamline the process, automating re-ordering and customer payments and enabling the franchisor or franchisee to provide in accordance with their customer's preferences.
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It's a win for everyone!
Subscription-based franchising is a win for everyone. Consumers can benefit from regular deliveries of the products and services they want, while businesses enjoy increased customer insights, a regular income stream, and unrivaled opportunities for upselling.
There are many franchises already capitalizing on the trend for subscription-based models. If this method of working appeals to you, there is ample opportunity to learn from the experiences of others and catapult your business into a bright and productive future.
