Recurring Revenue & Loyal Customers: The Power of Pharmacy Subscriptions

Recurring Revenue & Loyal Customers: The Power of Pharmacy Subscriptions

The subscription business model involves clients paying regularly in exchange for products or services. The periods may include weekly, monthly, quarterly, or annual payments. The revenue comes from the subscriptions. Data shows that the subscription market size by 2025 will surpass 2 trillion USD globally. Statistics indicate that at least 70% of the adult population worldwide subscribes to a product or service. In Kenya, an example of a subscription product is internet services. Customers access the services only when they make payment. A mandatory one is a vehicle third-party insurance coverage. Medical covers work similarly. Some local delivery apps have subscription packages that provide subscribers with unlimited free deliveries.

 

The subscription business model has several advantages. You can use the framework to build a steady revenue source for your pharmacy regardless of the prevailing business environment. You will be able to predict your periodic revenue. The model promotes customer loyalty, a critical component of business success. The predictability helps in inventory management and can limit loss due to expiries. You can also sell additional products to customers who trust your pharmacy enough to register for the subscription. The model eases your ability to scale. The information you pick from the loyal client base can give additional insights into your pharmacy business.

 

Setting up a pharmacy subscription business involves thinking through the products and services you offer at your establishment. Which ones do customers come back for regularly? Think through the pricing. Create a package around such products or services. You can add convenience by, for example, delivering such products. Remember to put up relevant terms and conditions. Market your packages. An easy start is a package for those battling chronic illnesses. You can set up email subscription services for educative purposes and include products relevant to the emails you send out as an additional source of revenue.

 

When setting up subscription models for your pharmacy, remember to set up a system for managing your customer experience. Incorporate a way to bill for subscriptions. Keep upgrading the benefits of the packages to prevent them from becoming obsolete. Create subscriptions that make sense cost-wise. Constantly find ways of differentiating yourself from other pharmacies with subscription packages. Think through how your clients prefer to pay when setting up billing systems. Some local payment providers now have ways of processing subscription payments within Kenya. Work with your suppliers so you don't miss to deliver products already paid for.

 

Tips For Building A Successful Pharmacy Subscription Business

  1. Carry out your market research. Use your pharmacy data to determine what packages make sense for your client base.
  2. Pay attention to the competition. Keeping abreast of changes can help refine your packages to maintain your pharmacy's competitive edge.
  3. Regularly countercheck your pricing model. Does it make sense for your pharmacy and your client?
  4. Focus on building relationships with your customers. Create subscription packages that add value to your target clients.
  5. Think through the customer journey for potential subscribers. Make the process of signing up convenient and intuitive.
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