We hear that TikTok Subscriptions hitting the UK, offering a new way to engage with buyers on the entertainment platform.
TikTok Subscriptions are a new feature, but if you want an indepth guide to selling on TikTok then download our free eBook!
TikTok Product Subscriptions allow sellers to offer 5%, 10%, 15%, or 20% discounts to customers who subscribe for repeat purchases, boosting revenue and customer loyalty. But as with everything the question is do they work?
Well, some great news, you don’t have to offer massive discounts to gain customers, and why would you give away a massive chunk of profit and end up with a low value customer. The chances are high that even with just a 5% discount, you’ll have a customer that rolls over month on month and you don’t have to do a thing other than make sure you never run out of stock (Yeah! Don’t kill the golden goose!) and that you ship on time.
There is also the obvious downside to the buyer that subscribes because they’re attracted to the deep discount… but immediately cancel their subscription – it really does pay not to be too generous.
The buyer you’re wanting to attract is the one that’s going to purchase regularly anyway (but usually forgets) and offering a subscription you’re ensuring that their memory (or lack of) isn’t a reason not to carry on enjoying your product.
Oh, and a word of warning, if you increasing standard subscription discounts then this will be applied to all subscribers – new and existing. However decreasing your subscription discounts will only apply to new subscribers, any existing subscribers get to keep their original discount at the higher rate.
Now the really good news – TikTok will likely offer incentives for buyers’ first purchases which can only encourage them to take up your subscription offer.
TikTok Subscriptions are currently available for select sellers and limited to a handful of categories including Beauty, Food & Beverages, Health, Home Supplies, Personal Care, Pet Supplies, select Automotive sub-categories, and select Fashion sub-categories.
