If your print shop switched to a subscription print model, how would your customers benefit? And what difference could it make to your business? Soyang explains.
What’s the point of a subscription model for print shops?
Here’s how a print shop usually operates. A customer needs a print job doing. They ring it through or submit it electronically. You deliver. They pay. There’s nothing wrong with that way of working. Print shops have been doing that for decades. But there’s no escaping the fact that it’s prone to fluctuations.
To peak season booms and low season busts. To the whims of customers who choose you one week, then your competitor the next. To inherent unreliability.
Subscriptions change all that.
What are print subscriptions?
With a print subscription model, your customers no longer pay by the job. Instead, they pay a flat monthly fee roughly based on the volume or complexity of jobs they need from you.
You might run tiers of subscription pricing, with the entry level offering a handful of jobs each month, while a premium subscription might offer lots more, not just in terms of volume, but speed of delivery, finish, additional service options (like custom creative) or buffer stock holding.
Advantages of print subscriptions for customers
There’s potentially lots to gain for customers choosing a subscription model. There’s the certainty of pricing, where each month’s bill is the same as the last, with peaks and troughs smoothed. They’ll likely find per-project costs are lower than for a pay-as-you-go model. They’ll probably find greater customisation and personalisation of the service they receive, built on a growing relationship with you. And there’s the simplicity of it all. They don’t have to remember to pay the bill. They don’t have to scour print shops for a particular service.
A recent Deloitte survey showed that more than 50% of consumers value subscriptions because of convenience and cost savings.
And it’s not just customers who find lots to like in print subscriptions. They offer lots of advantages for print shops too.
Advantages of print subscriptions for printers
1. Predictable, recurring revenue
Subscription models provide consistent, predictable cash flow compared to one-time purchases. It’s a US study, admittedly, but according to Zuora’s Subscription Economy Index, subscription-based companies grew revenues ~4–5x faster than S&P 500 companies over the past decade. There’s no reason to think things are any different this side of the pond.
That predictability of income is important because it makes it easier – and far less risky — for companies to plan, order inventory, manage staffing and invest in new equipment and premises.
2. Increased customer retention & loyalty
Subscriptions “lock in” customers, making them less likely to switch to competitors. Loyal subscribers often spend more over time and are more receptive to upsells or cross-sells (like upgraded print quality or additional services).
And without wishing to be cynics, subscriptions offer a passive income in many cases, because lots of us subscribe to services we rarely (and sometimes never) use.
While data is sketchy for companies, we do know that, more broadly, more than half of all consumers have at least one subscription they haven’t used in the past six months.
Even for those that use subscriptions rarely, there’s value for them in having it ready to use (which is why so few cancel). That’s a whole income stream that simply doesn’t exist for a pay-as you-go print shop.
3. Usage data & personalisation opportunities
Print subscriptions give companies access to regular usage data (e.g. how much customers print, which services they use etc). That’s extremely valuable, because such data can be used to offer tailored services, anticipate needs, and improve customer satisfaction.
That in turn creates a virtuous circle. As McKinsey reported, companies that capture more value from personalisation enjoy 40% more revenue compared to their non-personalising peers.
Talk to Soyang
What will you do with that loyal customer base and increased ability to personalise print orders? To ensure your print materials keep pace with your growing print subscription business, talk to Soyang.
