A brief discussion on the "monthly service" operating model

Background: Because I recently moved into a new home, I originally wanted to buy a few potted plants to decorate the room, but when I saw a monthly flower subscription service, I thought it was fun and worry-free, so I purchased a monthly flower subscription service. , there are several types of flowers that have been selected, and the merchants randomly match them and deliver them four times a month.

This reminds me that I have seen a platform called BlackSocks that specializes in selling black socks, and it has always had good results. In this issue, let’s talk about the business operation model of monthly subscription service.

1. Let’s first analyze which products are suitable for monthly subscription services? I think it should probably meet the following requirements:

1. Product standardization, or standardization within a certain range.

2. The product repurchase rate is relatively high.

3. The category has no obvious leading brand in the market.

4. The purchase decision-making cost is small.

5. Purchase is not very convenient.

2. The core of the monthly service business model

Core: It provides convenience that meets the basic functional attributes of the product.

1. The shipping cost is extremely low: socks are similar to paper, light and take up little space, and can be sent to customers’ homes by ordinary letters;

2. You can get them first Cash, lower selling prices, and lower costs: Prepayment brings cash flow and purchasing advantages to enterprises, ordering socks in large quantities, and obtaining the cheapest cost price.

3. The product items do not need to be too many, and they can cover all needs: black socks, without any color. (The most important)

Let’s talk about the third point in detail. Because socks are standardized enough, customers will not have many personalized needs and it is easy to mass-produce them. This standardization not only includes product or service standards, but also consistency standards that bring psychological benefits to users. Similar to whether you can enjoy the same drink quality and service at any Starbucks, KFC or Heytea store.

For some users who like to use flowers to decorate their homes, this service solves the two problems of time-consuming and labor-intensive daily maintenance and limited self-growing varieties. In order to solve the problem of standardization, merchants have limited the number of designs and colors corresponding to different fees in the service packages provided, thus solving the problem of standardization. The issue of purchasing convenience is easier to understand. It is basically difficult to buy flowers except in flower shops or some large shopping malls.

However, the user group targeted by the monthly flower subscription service is obviously narrower than that targeted by the socks service, but there is indeed a certain market demand.

Let me talk about toothpaste first, it is not suitable for monthly subscription service. Because the functional distinctions of toothpaste are too detailed, including whitening, solidifying teeth, freshening breath, etc., it cannot meet the requirements of "product standardization, or specified standardization within a certain range".

Supplies such as rice and oil are not suitable for monthly subscription services, although they have high repurchase rates and a wide audience. It is not difficult to find that rice and oil have well-known brands in the market, which does not meet the requirement of "the category has no obvious leading brand in the market".

Finally, let’s talk about eggs. Eggs are standardized, have a high repurchase rate, and do not have a leading brand. Are eggs suitable for monthly subscription service?

Eggs are also not suitable!

1. Shipping problems, easy to damage.

2. The price of eggs fluctuates greatly, and this price fluctuation greatly affects the purchasing decisions of "mothers", which does not meet the requirement of "low purchasing decision-making costs".

In summary, if a product wants to adopt a monthly subscription business model, it must meet these five major factors: standardization, high repurchase rate, no leading brand, low purchase decision-making cost, and inconvenient purchase.

Let’s share this issue’s product operation analysis here~ Remember to like it after reading it~