How to Launch a Coffee Subscription Service
As many coffee shops were forced to close their doors during the pandemic, a new trend rose up: coffee subscription services. From a business perspective, this isn’t just a temporary hype. Offering a coffee subscription service provides a unique and flexible way for coffee roasters to interact and build a relationship with their customers beyond the coffee roaster machine. In this blog, we will talk about the benefits of launching a coffee subscription service and why it is such a valuable sales channel for specialty coffee roasters and cafes. We will also give you tips on how to launch a coffee subscription service that your customers will love.
The Benefits of Coffee Subscription Service
A coffee subscription is a business model where customers receive their roasted coffee beans of choice regularly over a specified period of time. The main difference between subscription and online shopping is that conventional online shopping relies on one-off purchases and total revenue. In contrast, coffee subscription service uses re-planned purchasing and recurring revenue.
Just like in any other industry, customers in the coffee business expect a hassle-free shopping experience, free delivery, and instant gratification. The coffee subscription service meets all of those needs while allowing significant growth opportunities for businesses that offer this service.
Below are the main benefits of a coffee subscription:
- It is a source of regular, recurring sales
Subscribers bring steady, reliable income that can be used to invest in other areas, compared to one-off transactions.
- Increased customer loyalty
Subscribers are long-term customers with a high lifetime value, have an affinity and trust for your products, and are likely to recommend your products to others.
- It enables access to new customer segments
Recent market studies revealed that the subscription e-commerce market is expected to reach the Compound Annual Growth Rate (CAGR) of 68% by the year 2025. This means that there is no shortage of potential new customers.
- It allows better inventory management
As customers are subscribed and committed to buying over a certain period, these consistent and regular purchases also help coffee roasters to manage their inventory more efficiently. It makes it easier to predict when to buy green coffee beans and which variety the customers prefer.
- It provides an opportunity for cross-selling
Subscribers are more likely to open your e-mail newsletter and view your brands and products regularly for months or even years. This is an excellent opportunity to offer other products that they might want to try in addition to their subscription.
How to Launch A Coffee Subscription Service
If you are already selling coffee beans online from your own ecommerce platform, then you are ready to launch your coffee subscription service. Below are the steps:
1. Make a unique value proposition
Offer something that your customers cannot refuse, such as a monthly roaster’s choice, or coffee beans of the month, with an attractive price point (for example, a 10% discount if customers sign up for a six-month subscription). Schedule your roasting schedule and delivery time so you can highlight the freshness of the roasted coffee beans delivered to your subscribers.
2. Set up a solid coffee e-commerce platform
Make a subscription page that is easy to navigate and contains the why and how your customers sign up to the coffee subscription service, highlight the coffee beans and use your best coffee photography. Make sure the registration process flows smoothly with step-by-step instructions that are easy to understand. With a myriad of online payment options available these days, both new and existing subscribers can choose any method for easy, seamless transactions..
3. Focus on personalization for your customers
Go the extra mile to make your customers feel special. A thank-you note, a postcard with the coffee beans’ details, occasional discount vouchers, or small gifts, will not go unnoticed and increase your customer loyalty.
4. Closely monitor your cash flow
Paying close attention to the financial details of the coffee subscription service is key to ensuring a healthy business. With the additional costs of packing and shipping, personalized items, and advertisement to attract new subscribers, coffee roasters need to balance between meeting their customers’ expectations and managing finances.
A coffee subscription service is definitely one of the ways that coffee roasters can generate more business. In many ways, coffee subscription service is all about customer convenience. Customers subscribe because they want to “set it and forget it” where they receive their roasted coffee without having to think about it again, like clockwork. As a business owner, your goal should be customer retention and customer lifetime value. By building a unique value proposition, setting up a solid e-commerce platform, focusing on personalization for your customers, and closely monitoring your cash flow to ensure a healthy business, you are setting up your coffee subscription service for success and making your customers stick for a longer time.