Subscription Marketing

by Anne H. Janzer

When your business success depends on a long-term relationship with the customer, you have to start thinking about marketing differently. Marketing must help customers realize value.

Whether you’re marketing a membership program, a complex managed services offering, or a cloud-based solution, Subscription Marketing gives you creative marketing strategies for nurturing customers long after the initial sale.

Genres: Business, Nonfiction, Entrepreneurship, Startup, Audiobook

162 pages, Paperback

First published January 28, 2015

About the author

Anne Janzer is a writer, author, and business writing coach with a background in business and marketing.

She loves talking with writers about the process of writing, and is fascinated by cognitive science.

Reviews

[Shaw · Rating 4 out of 5]

Highly recommended for those who work in subscription software or services. I only wish it was longer.

[Johnny Vasquez · Rating 4 out of 5]

I think for someone thinking about starting a subscription product, this is a decent overview of your options.

There are a lot of examples of what people are doing in the space. But if you’re looking for actionable advice on how to actually create a subscription product you won’t find much here. There is no framework for figuring out what the best model is for your business.

The one emphasis this book has that similar books don’t have is a focus on the customer experience. It’s much easier to keep a current customer than to find a new one. I think had this book focused more on that, with a more solid framework for creating a stellar customer retention plan it would have been a home run.

[John Meese · Rating 5 out of 5]

An excellent, engaging foundation for anyone thinking about building subscriptions into their business model.

My mind has been spinning with ideas ever since I finished this book.

[Ronald J. · Rating 3 out of 5]

I liked this book, even though it was very basic. There were some valuable big ideas, such as Janzer's value nurturing, which happens after the sale. It’s objective is to help customers achieve and realize value from the solution, and she lays out 5 approaches to execute on it. She ran through different adoptions models for a company--and this is a big change management issue, since it's a business model change. She explains why the traditional "sales funnel" is dead is a subscription business. She also brought up "inadequacy marketing," where the prospect lacks something that can only be fixed with a purchase. With subscriptions, the customer is the hero (see Apple’s ads, where the device is always the enabler of the user's creativity and imagination). This fits well with the idea of customer transformations, where the customer is the product. She also notes that organization boundaries (silos) are the enemies of the subscriber experience. So true. She quotes Tien Tzuo, CEO of Zuora, and author of Subscribed (reviewed herein): “In five years, you won’t buy anything, but subscribe to everything.” Janzer's not sure, but says: Janzer: “In five years, you’ll have the option of subscribing to everything—and every business will have to accommodate that fact.” Venture Capitalist Ben Horowitz (David Horowitz's son) says "your story is your strategy." And when you look at Direct-to-Consumer brands such as Casper, Warby Parker, Harry's Razors, etc., they are even giving headaches to the world's leading marketing companies, such as P&G and Coca-Cola. My only quibbles with the author is her apparent view of the scarcity and dwindling resources of the Earth. That's simply not true, since the human mind is the ultimate resource and can overcome the scarcity of anything with creativity and innovation (and indeed, that has been the historical record). Also, her touting of Tom's Shoes as a great story. She should watch the movie Poverty, Inc. for the actual, on-the-ground consequences of shortsighted programs such as Tom's Shoes, which makes it harder for local entrepreneurs to launch wealth-creating businesses. And since the only antidote to poverty is wealth, giving things people is not a "sustainable" answer to fighting poverty.

[Doğa Armangil · Rating 4 out of 5]

The author makes the case that the role of marketers in subscription businesses differs markedly from the traditional role that marketers have in traditional transactional businesses.

The author argues that the role of marketers should evolve towards subscription marketing even in transactional businesses that wish to maintain an ongoing relation with individual customers through membership programs or similar measures.

According to the author, subscription marketing is different from "transactional" marketing in that:

* Marketing activities are not limited to the pre-sales part of the customer journey.

* Marketers engage with customers throughout the customer journey, from after-sales onwards using what the author calls "value nurturing" activities, the intent being to remind the customer of the value he/she is getting from the subscription.

The argument made here is that, with the rise of the subscription model that the economy is currently experiencing, the marketing role will naturally expand to include other after-sales activities.

The reverse argument could equally be made, perhaps more convincingly. Namely, that in a subscription economy marketing would become less prevalent, and that after-sales customer success teams (which the book mentions without emphasising) would come to the forefront that engage with customers on a more individual basis than a marketer would.

[Davor · Rating 1 out of 5]

I do not like to post bad reviews or criticize heavily books because of the work authors put behind their works, but honestly this book is practically WORTHLESS!

I am interested in the subscription business model so I hoped to learn something from this book, and unfortunately, I can tell you right now, go the other way.

This book brings absolutely ZERO VALUE, it contains no new information or concrete advice. It just reiterates what you already know.

Don't waste your time on this book, there are far too many good ones waiting on you.

[Terri · Rating 5 out of 5]

I inhaled this book. It’s a quick, easy read that throws a lot of concepts at the reader rapidly. This book codified and put into words so much of what I instinctively knew about my job in customer support for a subscription based company but had never been able to articulate. It gave me a framework for thinking about the future and the business practices the company needs to lean into. I highlighted so many parts of this book, got so many ideas, and have emailed my boss and the head of our company to recommend the entire company read this book. So glad this was recommended to me!

[Karen Catlin · Rating 5 out of 5]

Not just for the big fish

I’d been meaning to read “Subscription Marketing” for ages, and I’m glad I finally did. While the entire book is full of helpful insight (both best practices and cautionary tales), in this 3rd edition, Janzer added a chapter for Solopreneurs and Authors. Subscription marketing isn’t just for the big fish, it’s for us one-person businesses as well. —Karen Catlin, author of “Better Allies”

[Triguna Saideep Chillara · Rating 4 out of 5]

I highly recommend this book to the young and aspiring entrepreneurs and also to the business professionals!!
The current trend of subscription based marketing has been clearly mentioned with ots pros as well as cons. Apart from this, the thing that intrigued me in the examples the book contains. They are to the point.

[Blaine Strickland · Rating 5 out of 5]

Listened to this book via Audible. The author tips her hat to the subscription economy (many other authors have addressed the macro picture) but then provides many specific examples and tactics. I found the book to be very useful and frequently made notes and/or looked up one of her references. If you are considering building a subscription business, this book will be valuable to you.

[Rachelle Cobb · Rating 3 out of 5]

More helpful for big-business owners with a few takeaways for entrepreneurs, this book wasn’t what I was expecting but had some snippets that were interesting, like the difference between “inadequacy” marketing vs. “empowerment” marketing.

[Michael Berman · Rating 3 out of 5]

Lacking

I really found the book lacking in inspiration. It did a good job listing and going through the full gamut of the process but really didnt capture my mind and heart and take me on an interesting journey.

[Linda Sankovich · Rating 5 out of 5]

Great info about subscription marketing

As usual, Anne Janzer write clearly with excellent examples about why subscription marketing cannot be ignored, even by solopreneurs. I'm going to use this as my manual for setting up subscription program. Highly recommended.

[David Shaw · Rating 5 out of 5]

Great read

Really Interesting and positive read. If you want to understand the right way to a subscription based business model then this is essential reading.

[Pamela I Wilson · Rating 5 out of 5]

Such smart, thoughtful advice here for both those considering creating a subscription offering to those who have one they want to optimize. New ideas were popping up for me every few pages!

[Omar El-Mohri · Rating 4 out of 5]

Great insights of the subscription model and where it differs from traditional marketing

[John Stepper · Rating 3 out of 5]

A clearly written useful primer on engaging & nurturing customers, full of actionable ideas.

[Paulius · Rating 4 out of 5]

Nice ideas, it was really interesting to compare recommendations vs actual experience. I guess the key point in this book: sale is just a start, after that you must focus on user nurturing.

[Armin · Rating 4 out of 5]

Bra poäng att bara halva jobbet är gjort när man signar en ny kund, därefter krävs ett relationsbyggande där företaget levererar utlovat värde. Särskilt relevant för SaaS-bolag!

[Ibrahim Sefer · Rating 5 out of 5]

Indeed quite an interesting listen. I like the structure of the book, so many chapters but she managed to boil it down to 4 rules :)

[V Maan · Rating 3 out of 5]

Work book, doesn't really count

[Chad · Rating 4 out of 5]

An excellent, practical guide to using marketing to retain customers in a subscription business. The main idea is that in a subscription business, the role of marketing expands to encompass the entire business. After the sale, marketing must nurture value and sustain trust. It includes many techniques and examples.

Notes
The Subscription Shift
Avg. annualized churn rate for B2B is 24%; B2C is 31%.

Marketers in subscription biz must be focused on churn/retention. Marketing campaigns and customer success efforts can reduce churn.

In a subscription biz, everyone's in marketing. Those in Marketing roles must look beyond traditional marketing to entire customer journey. Those in non-Marketing roles must adopt marketing practices and messaging.

Avg. break-even point for most subscription software is 3.1 yrs.

Customers must trust in your company, not just the solution. They must feel that you'll stay around, won't rip them off, won't trap them. They must continue believing they made the right decision.

Before sale, marketing must demonstrate value and earn trust. After sale, marketing must nurture value and sustain trust.

"You keep customers happy by doing exactly the same things that won them in the first place. You win customers by focusing on their needs. You keep them the same way."

Customer journey is better metaphor than funnel. Funnel metaphor treats sales process like inevitable, linear path. It generally disregards what happens after 1st sale, imperiling ongoing interactions with customer. It ignores feedback loops (nurturing customers so they renew, upselling, soliciting referrals) that are part of subscription biz.

Rather than focusing on number of leads generating, focus on attracting prospects who will find success with your solution, and remain loyal customers.

Marketing's job is to increase EVC (economic value to customer); EVC must exceed cost of renewing.

A subscription replaces many small decisions to pay with one (the subscription). Cognitive science shows that customers are happiest when they pay up front and get the pain out of the way, then are free to enjoy results of purchase.

Value-Nurturing Strategies
After sale, Marketing's job is value nurturing.
Approaches to value nurturing
1. Help customers find functional or financial success (save money, make life easier, be entertained, etc.).
2. Demonstrate value. Help customers realize they're being successful, through reminders or data.
3. Create value outside solution through content, community, data, additional services.
4. Tend and nurture relationship. Make customers love doing biz with you. Confirm customer's belief that subscription is good economic decision.
5. Align solution with customer's values (principles, ideals).

Provide instruction and training to increase tangible and intangible value.

Case studies are valuable to current customers as well as for attracting new ones. When a customer first subscribes, send them relevant case studies. Actively solicit customers for interesting stories to create new case studies. Stories and quotes straight from the customer are most powerful.

Try to convert usage data into measurement of benefit (time saved, blog posts published, etc.). Not everyone reads reports, so make data more obvious. Use year-end reports and gamification to make it fun. If you can't easily get data for each customer, share aggregated data.

Don't offer to pay for referrals. Behavioral psychology shows that offering payment for referrals reduces motivation. It changes the transaction from personal to commercial, and cheapens it. Instead, personally express thanks, and send an unanticipated gift after the referral. Instead of giving money, consider giving special treatment, access to events.

Putting the Strategies into Action
After sending a case study, send follow-up content that gives instructions or answers questions.

Customer Success Management is an integration of Marketing, Sales, Professional Services, Training, and Support, to meet the needs of recurring revenue companies.

If you have to change a pricing model or service, present situation as a potential gain rather than a loss. For example, if you raise prices, try to add features.

Offer a reasonable number of tiers/options, but don't overwhelm. People want and expect choices, to have a sense of control.

"Inadequacy marketing" is based on idea that prospects lack something that can only be fixed with a purchase. It encourages greed, vanity, insecurity. The hero of the story is product, service, or brand. By contrast, "empowerment marketing" helps customers on their own paths to growth and maturity. Customer is hero, and your product, service, or brand supports them. Example: Apple ads show people doing wonderful things with Apple products. Empowerment marketing is much more effective in value nurturing.

[Alicia · Rating 3 out of 5]

Interesting read, I like that she emphasized the importance of value nurturing and value leadership. Both are terms she discusses in the book, and they essentially cover how to engage customers and keep them long term. She provides good suggestions to implement into your business, that often gets overlooked because of the "bottom line"

[Daniel DiPiazza · Rating 3 out of 5]

Quick read that doesn't go as deep as Warrillow's "The Automatic Customer" — but spends a considerable amount of time focusing on value nurturing, which is hugely important. I'd read this as a supplement to other, more in-depth books on subscription businesses models, not as your foundational text.

[Alaeddin Hallak · Rating 2 out of 5]

Not much new here and the narration was very robotic

[Scott Wozniak · Rating 2 out of 5]

So basic that it didn't help at all. Took a long time explaining things like, what marketing is and what a subscription program is.