Email Marketing for subscription-based business models
Posted: Tue Dec 03, 2024 8:55 am
We want to present in a general way Email Marketing strategies that we can apply to subscription-based business models.
A subscription-based business model is one in which, instead of closing a sale each time to market a product or service, what is marketed is access to the product or service with a certain periodicity (monthly, annual, personalized).
Some examples of this type of business models can be:
Newspapers and magazines
Telephone Companies and Internet Providers
Hosting
Financial products
Associations or Clubs
Software
Access to paid websites
Tourist stay vouchers
Insurance
Etc…
EMAIL MARKETING PROGRAMS IN SUBSCRIPTION BUSINESS MODELS
When creating an Email Marketing program for this type of model, it is essential to first establish what the user's Life Cycle will be, as well as the paths they will follow throughout it (journey). Without going into the particularities of each business model, and being very synthetic, a user's Life Cycle could be represented with the following diagram:
User_life_cycle_subscription
The user starts a search, usually online, finds a candidate to provide the service and requests information (1) . After a period of "assessment" and if we have done things well, the user will contract the service (2) . As we provide the service, the time of renewal will be closer. Thus, it makes sense to establish a time in advance (3) of the expiration or renewal date (4).
Let's add to this scheme what we call " windows of opportunity ". These are those "moments of truth" in which the user is more predisposed to "convert" to certain marketing messages. The 3 major windows of opportunity correspond to the moments in which:
The user has a greater propensity to hire the service
The user has a greater propensity to “engage” with the brand
The user is more likely to renew or unsubscribe from the service.
windows_opportunity
1. First window of opportunity : the user has a greater turkmenistan business email list propensity to contract the service. The moment a user visits our site and leaves their details, a process of decreasing “engagement” begins. That is, as time goes by, the chances of that user converting decrease ( see the notion of recency ). Since the user is at the best moment in the life cycle to convert (they are actively looking for our service!), we must maximize the opportunities to impact them with conversion-oriented marketing messages. To do this, we propose the following tactics.
1.a. Remailing. This will involve giving elasticity to the email marketing campaigns that we have at this stage (whether it is a welcome email, an email with the results of a price comparison, an offer to contract a free service for a certain time or any type of email that is executed at this stage of the life cycle), so that we maximize the chances of impacting users.
Remailing
1.b. Browsing Behavior (behavioral segmentation). This consists of sending an email with the content visited by the user during a session on the site. In the first window of opportunity, a user can access the site on a recurring basis, initially possibly registering and on subsequent occasions accessing it again to gather more information. A very effective tactic in these situations consists of sending a “trigger email” to the user with the content that they have visited on the site . This involves maintaining commercial pressure with content that, in the vital context of the user’s purchase, they consider relevant (they have stopped to consume it on the site). In this type of email, it is important to keep in mind that what we are going to do is take the website to the user’s mailbox.
browsing
Examples of emails based on browsing behavior (Linkedin and Amazon)
2. Second window of opportunity: the user has a greater propensity to “engage” with the brand. Once we have captured a client, we will have to offer them the contracted service over a certain period of time. Although the type of mailings we make in this phase will be determined by the type of service we provide (sending alerts, product updates, information on extracts, etc.), it is important to keep in mind the user’s general disposition towards our brand. Firstly, they have already experienced the service, and secondly, if they are satisfied, they will be more receptive to evaluating proposals that improve or expand the service . On the other hand, since we have already captured the client, the type of communication should be less “aggressive” and more oriented towards the service and positioning the brand (if we achieve this, it will be easier for the user to renew when the time comes).
A very valid alternative is to create a newsletter with editorial content . This involves sending valuable content to the user (linked to the theme of the business in which we operate). If we do it well, this will generate two great benefits. Firstly, it will help us position the brand, and secondly, we will create awareness . It is key at this point to be relevant in terms of the content we are going to send to our users. In this sense, creating sociodemographic or behavioural profiles will help us achieve this.
Amazon Web Services Newsletter
Amazon Web Services Newsletter
3. Third window of opportunity: the user has a greater propensity to renew or unsubscribe from the service. When the subscription expires, two things can happen: either the user will unsubscribe or renew (in some cases, renewal may include an increase or decrease in the level of service). It is clear that the experience with the service and the value perceived by the user will determine one or the other outcome. In any case, we find ourselves in a context in which the opportunity for the brand consists of maximizing the number of renewals and their value. A good tactic to address this moment consists of “anticipating” the arrival of the “moment of truth” that is the renewal . Thus, we can carry out a series of reminders, for example 90, 60, 30, 15, 7 and 1 day before the expiration date of the service.
A subscription-based business model is one in which, instead of closing a sale each time to market a product or service, what is marketed is access to the product or service with a certain periodicity (monthly, annual, personalized).
Some examples of this type of business models can be:
Newspapers and magazines
Telephone Companies and Internet Providers
Hosting
Financial products
Associations or Clubs
Software
Access to paid websites
Tourist stay vouchers
Insurance
Etc…
EMAIL MARKETING PROGRAMS IN SUBSCRIPTION BUSINESS MODELS
When creating an Email Marketing program for this type of model, it is essential to first establish what the user's Life Cycle will be, as well as the paths they will follow throughout it (journey). Without going into the particularities of each business model, and being very synthetic, a user's Life Cycle could be represented with the following diagram:
User_life_cycle_subscription
The user starts a search, usually online, finds a candidate to provide the service and requests information (1) . After a period of "assessment" and if we have done things well, the user will contract the service (2) . As we provide the service, the time of renewal will be closer. Thus, it makes sense to establish a time in advance (3) of the expiration or renewal date (4).
Let's add to this scheme what we call " windows of opportunity ". These are those "moments of truth" in which the user is more predisposed to "convert" to certain marketing messages. The 3 major windows of opportunity correspond to the moments in which:
The user has a greater propensity to hire the service
The user has a greater propensity to “engage” with the brand
The user is more likely to renew or unsubscribe from the service.
windows_opportunity
1. First window of opportunity : the user has a greater turkmenistan business email list propensity to contract the service. The moment a user visits our site and leaves their details, a process of decreasing “engagement” begins. That is, as time goes by, the chances of that user converting decrease ( see the notion of recency ). Since the user is at the best moment in the life cycle to convert (they are actively looking for our service!), we must maximize the opportunities to impact them with conversion-oriented marketing messages. To do this, we propose the following tactics.
1.a. Remailing. This will involve giving elasticity to the email marketing campaigns that we have at this stage (whether it is a welcome email, an email with the results of a price comparison, an offer to contract a free service for a certain time or any type of email that is executed at this stage of the life cycle), so that we maximize the chances of impacting users.
Remailing
1.b. Browsing Behavior (behavioral segmentation). This consists of sending an email with the content visited by the user during a session on the site. In the first window of opportunity, a user can access the site on a recurring basis, initially possibly registering and on subsequent occasions accessing it again to gather more information. A very effective tactic in these situations consists of sending a “trigger email” to the user with the content that they have visited on the site . This involves maintaining commercial pressure with content that, in the vital context of the user’s purchase, they consider relevant (they have stopped to consume it on the site). In this type of email, it is important to keep in mind that what we are going to do is take the website to the user’s mailbox.
browsing
Examples of emails based on browsing behavior (Linkedin and Amazon)
2. Second window of opportunity: the user has a greater propensity to “engage” with the brand. Once we have captured a client, we will have to offer them the contracted service over a certain period of time. Although the type of mailings we make in this phase will be determined by the type of service we provide (sending alerts, product updates, information on extracts, etc.), it is important to keep in mind the user’s general disposition towards our brand. Firstly, they have already experienced the service, and secondly, if they are satisfied, they will be more receptive to evaluating proposals that improve or expand the service . On the other hand, since we have already captured the client, the type of communication should be less “aggressive” and more oriented towards the service and positioning the brand (if we achieve this, it will be easier for the user to renew when the time comes).
A very valid alternative is to create a newsletter with editorial content . This involves sending valuable content to the user (linked to the theme of the business in which we operate). If we do it well, this will generate two great benefits. Firstly, it will help us position the brand, and secondly, we will create awareness . It is key at this point to be relevant in terms of the content we are going to send to our users. In this sense, creating sociodemographic or behavioural profiles will help us achieve this.
Amazon Web Services Newsletter
Amazon Web Services Newsletter
3. Third window of opportunity: the user has a greater propensity to renew or unsubscribe from the service. When the subscription expires, two things can happen: either the user will unsubscribe or renew (in some cases, renewal may include an increase or decrease in the level of service). It is clear that the experience with the service and the value perceived by the user will determine one or the other outcome. In any case, we find ourselves in a context in which the opportunity for the brand consists of maximizing the number of renewals and their value. A good tactic to address this moment consists of “anticipating” the arrival of the “moment of truth” that is the renewal . Thus, we can carry out a series of reminders, for example 90, 60, 30, 15, 7 and 1 day before the expiration date of the service.