While subscription commerce business models have been around for some time, they are becoming much more popular lately, as consumers continue to look for companies that can provide high-quality goods or services for a fraction of the price of name-brand competitors.
Take startup TieTry for example. The subscription commerce company was created by University of Alabama graduates Scott Tindle and David Power, who decided to offer customers a tie rental service for a monthly subscription fee below $30 per month, according to a report by USA Today.
“We wanted to come up with an interesting business idea and since we are both lawyers, ties seemed to be a good fit,” Tindle said, according to USA Today. “With some ties going for $90, this is a good way to expand your wardrobe without breaking the bank.”
The company lets consumers pick and choose which ties they like and put them on a waiting list – a similar approach to successful movie and TV subscription company Netflix. The ties are delivered in a prepaid envelope, allowing individuals to send them back after a month’s use or quickly return them to get new ones, the news source said. Customers also have the option to purchase the ties they like, which come from name brands such as Brooks Brothers, Tommy Hilfiger and bow tie designer Southern Proper.
“We have customers from every walk of life,” Tindle said, according to USA Today. “Lawyers, college professors, people in business. We try to offer a good selection from known designers. We are also working with regional tie companies to give our customers a good selection to choose from.”
Using a SaaS subscription management and billing platform can also enhance client satisfaction. By leveraging these types of solutions, TieTry and other subscription commerce organizations can better track customer activity, optimize offerings based on customer preferences and in turn, build stronger customer loyalty.