Subscription programs ensure recurring revenue by recruiting customers and enhancing the overall foodservice offer

Subscription is a big buzzword referring to any recurring or prepaid program that is delivered or available on a regular basis. 

Printed magazines and newspapers were the first to the subscription game. Netflix, Spotify, and Amazon jumped in during the e-commerce boom. And, more recently, convenience stores and QSRs have found great success with food and drink programs sold on a monthly fee.

Subscription programs will increase foot traffic, enhance foodservice offers, and are the epitome of convenience for customers looking for a quick and satisfying store visit. 

Liquid Barcodes has long been the industry leader in subscriptions, servicing more than 2,000 locations in the US alone. Having helped convenience stores around the globe, especially in Europe, offer beverage and foodservice programs to thousands of customers daily, Liquid Barcodes is quickly becoming the industry leader in foodservice subscriptions.

Here are some things we’ve learned that will help you launch your own successful subscription program.

What is a subscription?

A loyalty program rewards frequent visits with discounts, points and more. Subscription programs are like loyalty programs on steroids ensuring recurring revenue by rewarding returning, high-value customers for your store. When buying a monthly subscription in a mobile app, customers can skip the line – the ultimate convenience. This allows you to simplify your operation and handle peak hours more smoothly.

Subscription customers have declared that your product is their favorite and that your store will be in their regular routine. Talk about loyalty!

A subscription program can take many forms, but let’s start with unlimited product subscriptions. In this case, a customer pays a flat fee per month and receives nearly unlimited (or slightly limited, if you chose) access to a product like coffee or drinks.

Subscribers provide payment information and the fee is automatically charged every month. According to PYMNTS.com, the average person pays for four subscriptions with Millenials having almost five on average. 

For retailers, a paid subscription means guaranteed monthly revenue that will help you predict reliable inventory and staffing. Additionally, a treasure trove of customer data now exists to learn when they shop, what they purchase, and allows you to better structure and personalize marketing campaigns.

Subscriptions Drive Foodservice Sales

According to NACS, consumers visit convenience stores to do three top things: get gas, use the bathroom and to buy a drink. As prepared food becomes the norm in top-tier convenience stores, that number is increasing in the consumer’s decision to stop.

Depending on the product, the subscription itself might not be the moneymaker. While popular with customers, fountain drinks (soda/cold dispensed beverages) are a well-known traffic driving category. Generally, a fountain drink is a complementary product to food and snack items. A subscription guarantees recurring monthly revenue on fountain drinks and smart product positioning and promotions will lead to additional purchases like a snack or a sandwich.

Coffee, on the other hand, is a daily must-have and leads to a subscription customer getting their daily fix at your stores and only your stores. With the purchase purchased earlier in the month, they have no reason to go anywhere else and spend additional money. With a robust offer with many varieties to choose from, why would they go to a coffee shop or a different store?

Retailers across Europe and the U.S. offer beverage programs. 7-Eleven Sweden attracts recurring customers with the beverage offer and in turn, they can entice additional foodservice sales.

Lead the Pack

Subscription programs are a great way to secure long-term customer loyalty and revenue. Whether providing a subscription for drinks or food, securing recurring monthly revenue is imperative to stay competitive. As more and more companies join the subscription economy, don’t get left behind. With just a few months until summer ends, be the cold drink hero to your customer. There is still time to win one hundred percent of that customer’s wallet.

More About Subscriptions

This summer, we’ve been publishing several articles in our Summer Subscription Series to help you learn the basics and more about subscription programs. Check out these great articles to find your fit.

• Which Subscription Model Will Win You the Most Customers?
• Use Digital Prepaid Cards to Get Started With Subscription Programs
• Beverage Subscriptions Improve Foodservice Sales
• Enhance Foodservice Sales With Daypart Marketing and a Beverage Subscription Program
• Measure Beverage Subscription Program Success

About Liquid Barcodes

Liquid Barcodes is a leading global loyalty and digital marketing technology company specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with a process called the “customer connection cycle’ to engage, promote and reward customers’ activities in real time across digital and media channels.

Liquid Barcodes loyalty platform is powering loyalty programs for industry leaders across several global markets, by offering unique subscription, mobile payment, machine learning, personalization, gamification, loyalty, and other capabilities.

About the Author

Carolyn Schnare, Chief Content Officer, Liquid Barcodes

Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Prior to Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Shop Talk LIVE! video series produced by Global Convenience Store Focus media group.