Guide to Starting a Subscription Business Model

With the way Nigeria is set up currently, businesses need to find more ways to generate recurring revenue and maintain long-term customer relationships.

If the idea of generating recurring revenue interests you, then walk with me and let me guide you through setting up a subscription-based model for your business.

Identify Your Access Market

Migrating to a subscription-based model as a small business can be tricky. So it is not something you can jump into. You need to identify your market, what works, identify and understand your target audience and what works for them. As a fashion designer, you can not implement a strategy a food vendor uses. You have to understand your customer’s behaviour and know what suits them.

Package Your Offering

Identifying your niche or access market is the first step. Your next step should be to determine what value you are giving that will set you apart from competitors. For a fashion designer, you can get your customers to subscribe with a certain amount to get a certain number of clothes delivered to them within a certain timeframe. Communicate the benefits customers will receive by subscribing to your service.

Pricing Strategy

Choosing the right pricing strategy is important. Consider the different factors such as your costs, perceived value, and your customer's willingness to pay. Test different pricing tiers and subscription lengths to find the balance between affordability and profitability.

Managing Operations and Scaling

As your customers increase and adapt to your new model, this is the point it becomes necessary to invest in efficient scalable operations infrastructure and automation tools to streamline processes such as billing, customer support, inventory and delivery etc. Investing in solutions like the Haayaa platform that allows you to run your business seamlessly, especially with the payment (Haayaa Pay) integration that allows businesses to receive payment from their customers and the newest update that helps businesses with easy product delivery all in one platform.

Embracing Feedback and Iteration

Finally, prioritize feedback from your subscribers and use it to iterate and improve your different packages continuously. Be responsive to inquiries, resolve issues promptly, and go above and beyond to exceed customer expectations.

Till next time, for now, follow these steps and reach out on our socials to let us know if this was helpful.