Why Subscription-Based Businesses Always Win

If you’ve ever shopped online, you've probably noticed that subscription-based businesses are everywhere. From clothing to dog toys, coffee to snacks, make-up to entire meals, you can have just about anything show up at your door on a monthly basis.

Obviously, the subscription business model is working. But why?

These are just a few of the reasons why a subscription-based business is always a safe bet:

• It's Convenient for the Customer

  The typical person has enough to think about without having to keep track of how much coffee or toilet paper he has stocked up. No one wants to wake up and realize there's no coffee. Or toilet paper. The right subscription can prevent that from happening. Place one order, and the customer rests assured he'll always have plenty of razors, cleaning products, or whatever it is.Plus, it saves time. The customer isn't tasked with driving to the store and searching for what they need.

• People Tend to Set It and Forget It

  Most subscription companies make it very easy to cancel at any time; people aren't afraid to sign up, because they know exactly how to get out if they don't like it. However, unless you're diligent, it's easy to forget exactly when the box is supposed to ship--and when your credit card will get charged. Even when someone intends to cancel, a subscription-based company might get one or two (or even more) extra orders from that person before she actually pulls the plug.

• It Builds Loyalty

  If someone signs up for your dog food subscription, it's pretty unlikely he'll go buy dog food anywhere else. Via newsletters and special offers, you've got the customer's attention and you know you can, most likely, count on his or her purchase next month. Compare that to a store, where someone might walk in, buy a bag of dog food, and never return to that particular shop.

• It's Fun!

  People love to get mail, but normally the mailbox is full of bills and junk. So, rather, people love to get fun mail, and a subscription box fits the bill. It's like getting a present every month, whether you choose your products or the company surprises you with what they've chosen.