{"id":2741,"date":"2021-11-19T14:26:54","date_gmt":"2021-11-19T14:26:54","guid":{"rendered":"https:\/\/www.subbly.co\/blog\/?p=2741"},"modified":"2023-05-19T17:18:45","modified_gmt":"2023-05-19T17:18:45","slug":"are-you-prioritizing-one-time-sales","status":"publish","type":"post","link":"https:\/\/www.subbly.co\/blog\/are-you-prioritizing-one-time-sales\/","title":{"rendered":"Are you inadvertently prioritizing your one-time sales?"},"content":{"rendered":"\r\n

In some ways, subscription commerce is in opposition to transactional commerce (one-time sales). Prior to the subscription boom, transactional commerce was synonymous with e-commerce but since then, it\u2019s been necessary to categorize subscription models<\/a> separately from transactional ones.<\/p>\r\n\r\n\r\n\r\n

At their extremes, these concepts are easy to spot: a business that only sells subscriptions is subscription commerce, and a business that sells one-time products is transactional. However, as commerce evolves, it\u2019s increasingly common for companies to combine the two models together. Subbly is at the forefront of the subscription-first movement, and the conversation is getting much more nuanced.\u00a0<\/p>\r\n\r\n\r\n\r\n

What\u2019s your priority?<\/h2>\r\n\r\n\r\n\r\n

Subscription commerce and transactional commerce are fully compatible; it isn\u2019t about choosing one or the other anymore. The conversation has now shifted and it\u2019s all about your priorities. For many businesses, the thought of intentionally setting priorities is foreign. These businesses are likely inadvertently prioritizing their transactional commerce – even if they sell subscriptions too. There are a few easy tells:\u00a0<\/p>\r\n\r\n\r\n\r\n

    \r\n
  1. The first thing your website visitors are directed toward is the typical \u201ccatalogue view\u201d of one-time products.<\/li>\r\n
  2. \u201cSubscriptions\u201d is an option buried in the top navigation or menu of your website.<\/li>\r\n
  3. Customers have to dig through your website to find your subscription offering(s).<\/li>\r\n
  4. Your subscription products are on a separate website, with a separate domain, and sometimes a different company name.<\/li>\r\n
  5. Your subscription is a \u201ccrate\u201d or \u201cbox\u201d version of your primary business.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n

    Of course, some businesses set their priorities intentionally and for them, the choice may be to err on the side of transactional. But many companies are still unknowingly straddling the line between transactional and subscription models, and by failing to choose a priority, they default to one-time products whether it\u2019s good for their business or not. The primary reason: it\u2019s the way it\u2019s always been done. Businesses rely on website templates<\/a> from an old, transactional era of commerce and use ecommerce platforms built for that time. The secondary reason: businesses want to offer customers all options, but they default to selling the products and services that require no customer commitment.<\/p>\r\n\r\n\r\n\r\n

    What is your default mode? Is it serving your business? If you value your subscription customers and revenue more than anything else, but you\u2019re guilty of the five tells above, you may have your priorities backwards.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Subscription-first businesses can also sell one-time products<\/h2>\r\n\r\n\r\n\r\n

    Just because you prioritize subscription, doesn\u2019t mean you can\u2019t sell one-time products too. In fact, some of the most successful subscription-first companies<\/a> today are thriving in part because they integrate transactional commerce into their subscription business model, on top of following some general best practices.<\/p>\r\n\r\n\r\n\r\n

    Take dental hygiene startup Quip, for example. Customers have an option to try things out with a simple starter kit, including a handle, battery, toothbrush heads, and toothpaste. But once they run out of one of those things, they can set up a subscription, tailored to their use pattern, and make sure they never run out again. While it\u2019s unlikely that a customer will need a new handle every month, people always need new brush heads every few months.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Spruce is another great example of a subscription-first company that gets people initially engaged through a starter kit, except in this case, it\u2019s cleaning products. Customers can order a set of reusable bottles and a set of initial cleaning products, and then subscribe to monthly refills \u2014 the first month costing just \u00a31 \u2014 which is a great way to get people stuck in if they like the quality.<\/p>\r\n\r\n\r\n\r\n

    Finally, take a look at the lessons we can learn from Nespresso, a household name in the coffee world. While they do sell one time products, subscription-first principles are deeply embedded in their business. First, they sell their coffee maker (transactional), but once that’s happened, Nespresso knows they have a long term customer who will be buying coffee pods for years.<\/p>\r\n\r\n\r\n\r\n

    From these three examples \u2014 and believe me, there are more \u2014 not only can you sell one-time products, but you can lead with them, upsell them, or put them anywhere along the customer journey. The subscription-first movement doesn\u2019t demand that you choose one or the other, it\u2019s just about your sales intent. Is your primary intention to sell a subscription? If so, create a customer experience that reflects that. If you want to sell subscriptions by default, you have to be intentional about it.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Why prioritize subscription?\u00a0<\/h2>\r\n\r\n\r\n\r\n

    As one Subbly customer puts it, \u201cDone right, subscription customers are simply worth more.\u201d And it\u2019s true by the numbers. Indeed, data gathered by CaaStle, a subscription logistics provider, showed that one apparel brand reported that their rental subscribers spent 2.5x more on average than their traditional brand (non-subscription) consumers.<\/p>\r\n\r\n\r\n\r\n

    But it isn\u2019t always about the money. Selling subscriptions reorients the business to an ongoing and long term relationship with your customer. Business owners who want long term subscribers place a greater deal of emphasis on customer experience, product quality, and adding value. Businesses who prioritize transactional commerce spend an outsized portion of their time on finding new customers.\u00a0<\/p>\r\n\r\n\r\n\r\n

    Stop straddling and go all in<\/h2>\r\n\r\n\r\n\r\n

    Admittedly, a subscription-first approach isn\u2019t for everyone. Some products and businesses just aren\u2019t well suited for it. But regardless, it\u2019s worth it for every business to take a moment to be intentional. What do you prioritize and why? Some of you may find that by prioritizing transactional commerce, you\u2019re missing out on what you value the most. The good news is, it\u2019s never too late (and isn\u2019t that hard) to reorient yourself toward that which will make you most successful and fulfilled as a business owner.<\/p>\r\n","protected":false},"excerpt":{"rendered":"

    In some ways, subscription commerce is in opposition to transactional commerce (one-time sales). Prior to the subscription boom, transactional commerce was synonymous with e-commerce but since then, it\u2019s been necessary to categorize subscription models separately from transactional ones. At their extremes, these concepts are easy to spot: a business that only sells subscriptions is subscription […]<\/p>\n","protected":false},"author":20,"featured_media":2742,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[574],"tags":[583,578,580],"article_type":[567],"class_list":["post-2741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement","tag-integrated-business-model","tag-product-selection","tag-sales-intent","article_type-article"],"acf":[],"yoast_head":"\nAre you inadvertently prioritizing your one-time sales? - Subbly<\/title>\n<meta name=\"description\" content=\"Find out why the key to knowing if you're more of a subscription commerce or transactional commerce business lies in your approach to one-time products.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.subbly.co\/blog\/are-you-prioritizing-one-time-sales\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are you inadvertently prioritizing your one-time sales?\" \/>\n<meta property=\"og:description\" content=\"Find out why the key to knowing if you're more of a subscription commerce or transactional commerce business lies in your approach to one-time products.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.subbly.co\/blog\/are-you-prioritizing-one-time-sales\/\" \/>\n<meta property=\"og:site_name\" content=\"Subbly's Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SubblyCo\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-11-19T14:26:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-19T17:18:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.subbly.co\/blog\/wp-content\/uploads\/2021\/11\/FB.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1080\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Zaki Gulamani\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:description\" content=\"Your approach to one-time sales can reveal a lot. 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