When we talk about a blowdry club what we really mean is a salon subscription which allows it’s paying members access to UNLIMITED monthly blowdries for a single monthly fee.
The simplicity is what’s important. A Blowdry club is not a “book 6 get the 7th free” nor is it a “pay upfront and get X% off” and it is most certainly not a reckless discount.
It’s an all you can eat buffet of blowdries.
Let’s think about that for a second. As a salon owner it sounds scary; it sounds like money down the pan.
But the subscription model is used to turn huge profits in a multitude of industries, all over the world, even in fields you wouldn’t have thought possible just a couple of years ago.
With new ideas popping up all the time and all the survey’s saying that users prefer to pay a subscription rather than one off; NOW is the time to start your own.
Why a subscription works better than pay as you go?
The subscription model has continued to grow in popularity through 2019. According to research, customer acquisition costs are up more than 50% and willingness to pay for repetitive services has declined steadily for the past five years.
So there’s never been a better time to start capitalizing on your customer relationships through subscription.
And it’s not going away any time soon.
According to a survey by McKinsey & Company, 46% of your customers already pay into a subscription service company. Half of your clients already know how to use a subscription serves – you don’t need to convert them.
ok, so pay as you go is getting harder… but why subscriptions?
A subscription business model offers a host of advantages. It creates economies, retains customers and simplifies a lot of business processes making them easier in the long run. The model offers convenience to customers and saves on a lot of their time and effort.
Here are some key advantages for opting for such a model:
A subscription model simplifies the business process and makes it very easy for both consumers and the business. In this model, the consumers do not have to make a repeated purchase every month and the the business does not have to solicit any orders from existing customers. This adds to the productivity of the business, since the time and effort required in order generation is saved. The goods and services are delivered to the customer as and when they are required. The customer knows the payable amount in advance and this enables them to plan their budget well. The revenue predictability of the business also increases and the business can gauge where it’s headed.
Higher Customer Retention
A subscription model ensures that the business is retaining a larger number of customers on a consistent basis. The model gives an opportunity to get upgradations and increased revenue opportunities from the existing customers. Knowing the customers for a long period of time and solving their queries helps in coming up with solutions more suitable for the business. Since the scope of value addition stays throughout the customer lifecycle, the business gets consistent opportunities in growing the revenue.
Opportunities For Marketing
The business model ensures that the clients can be reached out to and engaged with on a regular basis. E-mail campaigns ensure upselling and cross selling opportunities.
Knowing preferences and usage behaviours of customers regularly helps business strategise their social and content marketing campaigns accordingly. Getting testimonials of regular subscribers and adding them to the website helps improve the business image and gain more customers for the business.
A business model like this helps in anticipating demand and supply with ease. This helps in achieving consistency in business processes. Adequate levels of inventory can be managed and planned for, well in advance. The appropriate vendors for product delivery and other services can be hired in advance, saving time, effort and costs. With effective planning, production and employee costs can also be saved, with this model.
Better Cash Flow Management
A subscription business model offers much higher payment safety for your business. It helps in realising automatic online transactions to receive regular payments for the products and services sold. This ensures not just regularity of business but also the cash being generated from it. The model provides overall stability to the business. It can opt for an appropriate subscription billing software and use late payment reminders to get the clients to pay up on time. Online payment gateways help in getting automated recurring payments. This helps in doing away with the time and effort involved in payment follow ups.
subscriptions are the way – where do i start?
…with the 3 core elements to a successful subscription businesses.
Applying a subscription business model to an existing service industry is a matter of finding the right tools and strategy. The core elements to success are relevant regardless of industry but with our comprehensive knowledge of the salon subscription niche, we’ve taken these three tried-and-true strategies and implemented them into our own software.
1. Boost acquisition with a better experience.
It’s a simple equation: more customers = more revenue. That’s why signing up for your subscription service needs to be as easy as possible. A great customer experience will improve your acquisition numbers over time. When combined with a great overall on-boarding journey, you’ll also find a higher average willingness to pay.
2. Streamline the billing process.
Don’t lose out on revenue because your subscription billing system isn’t reliable. BLOCS has a number of complex processes involved in account billing so your members won’t suffer a complicated billing process for very long.
3. Develop strong customer relationships. (you’ve got this one already)
The subscription business model is dependent on strong and lasting customer relationships. If your customers aren’t happy, or aren’t reminded of the value your service provides on a regular basis, they will cancel.
At BLOCS we believe we have produced not only the perfect business model; which protects the salon’s interests through clever restrictions, but also feature rich software, which automates and simplifies the blowdry club subscription plan.
We perfected this model and software ourselves in our salon, where we are able to restrict our members to limited availability, selected team members and to non-premium spaces.
Keeping to our plan and using our software, members take up little to no administration time, driving even greater profitability.
Further, our members visit on average 5-6 times per month, giving our team 9 times the opportunities to up sell (compared to normal frequency of visits) without effecting any other service.
If these benefits weren’t enough, how about a guaranteed, consistent monthly income, easier recruitment, loyalty enforced by pack mentality and a unique marketing opportunity.