How to Launch a Profitable Coffee Subscription
Coffee subscriptions have been around for over a decade, but in 2020 they
reached a height nobody saw coming. Trade, the JAB-backed subscription
company, grew 400% at the start of the pandemic. Square’s annual report
showed that the average subscription run by coffee shops and roasters
doubled in size.
The subscription model is firmly cemented in the mainstream, and coffee
roasters who launch their own in-house subscriptions—as opposed to
leveraging a third-party marketplace—have a lot to gain.
Let’s explore how you can build and launch an online coffee subscription
for your roasting business.
We looked at new research and interviewed experts across the industry to
put this guide together. In it, we’ll cover things like:
* The 3 different types of subscriptions you can offer
* How to price your coffee and other operational challenges
* Creating a Subscribe page that customers love
But first, a quick look at the key benefits of launching your own
subscription and why it’s such a high-leverage sales channel for coffee
shops and roasters.
The 4 Key Benefits of Launching a Coffee Subscription
Subscriptions are all the rage for consumers, and it’s not all empty hype
from the business perspective. Offering a subscription that you have
complete control over creates a unique way to interact with both new and
existing customers—and the upsides are no joke.
* Create a new source of recurring revenue. It’s why we all love
wholesale clients. Regular, reliable income lays a foundation for
investment in other areas of the business.
* Achieve a higher customer lifetime value. Customers who subscribe
experience little to no friction when it comes to that second (or
fifteenth) purchase, since they’re already invested. Subscribers are
sticky, which increases their lifetime value over customers who have
to make a conscious effort to purchase items one at a time.
* Generate long-term loyalty with continuous customer engagement.
Subscribers are here for the long-haul, are more likely to open your
email newsletters, and see your brand and products on a regular basis
for months or years. These folks are your biggest advocates—and your
biggest spenders.
* Access new customer segments. The subscription ecommerce market is
expected to grow 65% annually for the next five years—that’s a lot
of customers and dollars being traded for repeat purchases. Not
everyone wants to go through the labor of logging into your site
every time they need a new bag. And there’s no shortage of potential
subscribers out there.
There’s reason to get excited about adopting the subscription model, but
it’s going to take some careful logistical planning to get your operation
ready for the opportunity.
