By implementing a subscription based business model, European razor seller Shavenu is driving innovation in the shaving industry. Rather than competing head to head with larger companies, Shavenu decided to offer consumers a new way to receive shaving equipment by delivering it directly to their front doors, according to a TechCrunch report.
“We can’t compete with Gillette with a $1 billion marketing campaign,” Shavenu founder Marc Uthay said, according to TechCrunch. “People don’t know there are alternatives. I want to say: ‘Hey, we have the same products – or even better products – but cheaper.”
Currently, Shavenu only offers subscriptions to consumers in the U.K., Canada and Germany, but it plans to scale up its services in the coming years, TechCrunch reported. By leveraging a Software-as-a-Service (SaaS) subscription billing platform, companies can easily expand their offerings and target markets as their business grows.
Subscription models allow companies to simplify the billing process by automatically charging a customer on a regular, recurring basis. They also increase customer satisfaction, which in turn builds customer loyalty.