There will be a substantial market for an all-inclusive package with all the essential tools that are both practical and economical for small businesses. These independent restaurants and nail salons will need to restart, jumpstart and revive their business after being shut down.
The restaurant industry after COVID-19 will be very different, and the current SaaS software tools on the market are inadequate and expensive. This is my opportunity to use what I have created to relaunch my own business so that I can help them revive theirs.
A Product Plan
A successful subscription box begins with the idea that meets a niche want, need, or pain point. My subscription is a bundled discount box catered to small businesses based on revenue.
I spent my time off at home researching to see if my idea is already on the market and how I can offer more value or leverage a new niche. I tried out the pitch with a yearly customer and was able to convert him to a monthly “the last black box” customer.
Even though it is only one sales call, I knew that I have a good chance of landing more clients. I prepared my list of 133,400 ethnic restaurants in the US that will need help.[1]
A Marketing Plan
To be successful, you need to attract customers. But for subscription boxes, there’s an added challenge – you also need to make sure you retain customers. So, the marketing plan needs to include strategies that both convince customers to sign up and keep them. Most of our customers stay with us for at least eight years. I also need to create a web application with optimized e-commerce checkout to reduce cart abandonment.
A Pricing Plan
The right pricing strategy for your subscription is critical, and if the box is priced too high, you won’t get any signups. If you price your box too low, you’re missing out on potential revenue. I decided on a low starting price because every business will be cash strapped. To serve a broader range of ethnic customers, I will create tiered pricing options, and the service fees will be tied to revenues.
Retention Plan
For subscription programs, retaining customers is equally, if not more important, than getting more new customers. Since subscriptions are about relationships, so it is essential to make sure that the company remains engaged with the customer until revenue approaches $1 million.
One of the most welcome, unexpected benefits of subscribing to a subscription box service is the feeling of being part of a unique tribe. I have discovered that ethnic businesses with $1 million-plus in revenue no longer feel they are part of the tribe, and they have graduated from our subscription model.
[1] https://www.businessinsider.com/indian-cuisine-gains-traction-in-the-us-2015-9 & https://www.chd-expert.com/blog/press_release/chd-expert-evaluates-mexican-restaurant-industry-second-popular-menu-type-usa/: 5,000 Indian restaurants, 6,100 Thai, 3,200 Vietnamese, 59,800 Mexican and 59,300 pizzeria