How to Build a Billion Dollar Subscription Business Like Stitch Fix
Subscription services appear in many forms but not many are as well-known or as valuable as Stitch Fix.
Just as any good business would, Stitch Fix identified a gap in the market and found a solution for it, satisfying the needs of their customers and making a profit at the same time. How can you replicate their success with your own subscription services?
A Subscription Platform for Clothing
The idea behind Stitch Fix is simple.
A customer supplies information about their fashion and style preferences, and a stylist chooses clothes that match their requirements. Boxes of clothes are sent on a regular basis (every two weeks, every month, etc.) and the customer decides if they want to keep or return the clothes.
The more they keep, the bigger discount they receive. It’s that simple!
As time progresses, the system has been optimized to include reviews of the customer’s social media accounts, and clothes can be chosen by an AI stylist rather than a human.
How to Build Your Own Subscription Service
The first step may well be the hardest – coming up with a good business idea.
You’ll need a product or service that people want, and that can be difficult to find. Once you have the idea, how do you get it out to the world?
Having a website created or building one yourself is not too difficult these days, but the engine behind the website that powers the subscription services needs to be strong and reliable. Rather than reinvent the wheel, it’s sensible to use a company that offers subscription as a service, such as Xion Global.
Using the platform’s subscription management software, you’ll configure the parameters for your subscription service – the levels, the pricing, the frequency, and so on. Once it is live virtually everything will be automated, and you’ll need to concentrate on marketing your website and sending out the products or providing the services your subscribers demand.
The key to turning this into a billion-dollar business is the automation within the subscriptions and making sure that your marketing is targeted correctly.
Reliable Subscription Management Software
Without reliable subscription management software, your billion-dollar idea isn’t going to get off the ground. You need a simple way to take payments on a schedule, a recurring billing platform that you can trust. Xion Global provides just such a service with low fees and easy management for both businesses and consumers.
Why don’t you use the Xion subscription platform to launch your business today?