Consider these two scenarios:
- You have 10,000 on your database and 20% are considered active, but these active customers you cannot determine how regularly they will purchase from you. Some are regular, most may be sporadic. Hard for you to forecast for the next month, 3 months, 12 months revenue with certainty.
- You have 10,000 on your database and 500 active wine club members (subscribers) each receiving 4 dozen per year with an average case price of $200. That’s $400,000 per year in recurring revenue or $33,333 of Monthly Recurring Revenue (MRR). Now consider, they are probably buying outside of their subscription payments, plus you have the other 1500 customers (the remainder of the 20% active customer base) purchasing sporadically throughout the year.
MRR allows you to forecast revenues at set month periods into the future leading to internal business decisions such as marketing spend, new equipment, new hires and more.
Why Mypik?
Most subscription software falls short when delivering build-a-box capabilities. If you want to sell a suite of products and allow customers to purchase products you have curated, or allow them to select their own products, there is not much choice – or it is expensive.
Mypik was built specifically to handle User Choice packs (customers selecting their own products) and Fixed packs (products are chosen for the customer).
Why stop there? Mypik also provides further flexibility by applying quantity options to packs as well as frequency options.
- Do you want to choose your own products?
- How many do you want?
- How often do you want them delivered?
The result of these questions is higher conversion rates. The flexibility leads to having an option for just about everyone. Now there is an opportunity for a tiered membership, providing the higher discounts or benefits for those that purchase the most products the most frequently. The ultimate goal is to funnel as many of your subscribers in these higher quantity/higher frequency options. Attrition rates stay low by allowing subscribers to change products, switch packs, upgrade or downgrade pack options.
Mypik conveniently connects to your existing website so there are no changes in how you handle your eCommerce orders. You now have extra orders coming in from your subscription sales and an extra tool to your sales repertoire when selling wine in person – i.e. at the cellar door
- Intuitive and customisable signup page, directly created on your existing website
- Automatic payments (no need for batching)
- Subscriber management tools
- Subscriber self-management tools (let your members take control of their journey with you)
- Reporting
Manually running a club and using a form to convert new members has its drawbacks…..
Site visitors are more likely to fill out shorter forms because they require less effort. The number of questions on a form correlates closely with the rate at which people drop off, Hale said: At five questions, the drop-off rate is 2 percent; at 10 questions, 4 percent, and so on.
If you are using a form then there are clear blockages as stated above (source: https://www.inman.com/2011/01/12/increase-online-conversion-rates/). With Mypik, the sign up is intuitive, engaging, and fun to use. By the time the user gets to the checkout page, all the hard work is done and the conversion has fewer blockages.
A subscription club can offer great value to your business by providing Monthly Recurring Revenue (MRR), revenue forecasting opportunities and in this current economic climate due to COVID, security in secured sales. Mypik can be the engine room for your subscription program, offering flexibility to increase sign-ups and keep subscribers/members engaged.
As the world around us rapidly changes, having a core group of customers purchasing at regular intervals as part of a subscription club could be the difference in successfully navigating into the future. If you are not running a subscription club yet, reach out to your customers and ask them. Do the numbers on how often they may purchase, what the average value per case would be and multiply it out over the year. You can start by manually signing up new subscribers/members and when you can’t manage them manually anymore, check out Mypik.
Mypik is still finalising our testing with a select few Alpha launch clients. We hope to get to Beta soon and then full release. For more information on when we officially launch, please sign up to the form on our home page.
