What is it?
Subscription-based craft boxes for kids.
What we can learn.
The comment I want to make on this occasion is about ‘business modelling’. Posh name alert… toucanBOX is a ‘Recurring Revenue’ business model. This means subscribers pay a monthly fee to get the same (or similar) thing each month (or other predefined period of time). Why is it good? Because you can relax! Customers buy, and stay a while. So long as you’re delivering on the promise you make at a brand level and they see the value in what you’re doing. Can this approach be a part of your business model? (You can mix models, by the way… see ‘Did You Know…?’ below).
A great way to create ‘snowballing’ revenues. Great for developing customer habits (that are great for you – and for them). Can save your customer something more valuable than money – time (build this into your marketing messaging). A (part or whole) RR business model generally results in a more valuable business if you should ever sell it, because of the guaranteed sales. And once it is set up (we’d do this for you) it’s simpler. And simplicity is what ANGELFYSH is all about – effortless e-commerce! For you and your customers.
You’ll probably have to offer a deeply discounted (cover your costs if you can) first engagement, so lots of work for low or no profit – but the right thing to do to show your worth. Customer acquisition can take longer. It’s extra complexity, but is almost always worth it in the long run for a whole host of reasons.
Did You Know?
A ‘Recurring Revenue’ business model is just one of the four most common business models. The second is ‘Transaction-Based Revenue’. The third is ‘Project Revenue’. And the fourth is ‘Service Revenue’.