This part of our guide showcases some existing examples of acquisition campaigns and how a Subscription Product Catalogue would handle them.
Spotify is a good example of a subscription business with one core product and many acquisition campaigns. Let's explore how they acquire their subscribers.
This is a Spotify acquisition campaign for first-time subscribers which ran from Christmas through to New Year’s Eve 🎄
In this example, the campaign would be ’Spotify Christmas’ and include three offers for Spotify Premium, Premium for Students and Premium for Family for the USA segment. Note that Premium for Family is not discounted, so it’s reusing a default offer for this Christmas campaign. The product is always the same - access to Spotify.
However, not everyone celebrates Christmas. For the Saudi Arabian segment, there would not be a special Christmas promotion and the default evergreen campaign with its standard trial offer would be shown. Additionally, there would not be any other offers for Students and Family in this geographical segment 👇
Spotify may also run campaigns with partners at any time of year. For example, this is a campaign promoting Spotify on the Sky website
Or another partner promotion bundling Spotify Premium with Headspace advertised over emails 🧘♀️
Let’s take another example: car subscriptions. Drover is a start-up business which enables you to subscribe to a car at an all-inclusive price, selecting whichever model you like. This is a good example of a subscription business with multiple products and few campaigns.
It looks very much like an eCommerce website, doesn’t it? This would be reflected in their subscription product catalogue where each car would be a distinct product. It’s common for car subscription services to run campaigns around new vehicle launches. However, the subscription price is determined by the dealer and would typically be fairly constant, so it’s likely that marketers would have an evergreen campaign with different offers for each subscription term. Each offer could have a list of associated cross-sells, for example a certain mileage package and delivery options 🚘.
Our previous examples highlighted Spotify with its one product and many campaigns, with complexity arising from its digital worldwide reach, and Drover with many products, few campaigns. Drover’s complexity results from its physical world inventory.
A third example would be Sky, the multimedia conglomerate which sells a combination of TV, broadband, mobile subscription products and services in the United Kingdom: Sky.
You can only imagine the complexity of their subscription product catalogue, with its various products and campaigns, multiple subscriber segments and multiple channels.
A multi-product company such as Sky also has unlimited possibilities with regard to upselling and cross selling. For example, why not include TV with your broadband? There’s a special offer for that! Oh, you want the iPhone 6S. Did you know you could save more by buying the XS? Check it out!
This operational complexity comes at a price. For many telecom companies, the Christmas campaign must be fully approved by August, a full four months before it actually goes live on the website, in shops, in partner channels, in email promotional marketing, in advertisements, in contact centres. Having such a wide range of products sold across many campaigns is a challenging task.
More campaigns, more problems
With millions of subscribers, marketers at Spotify, Drover and Sky must continuously create innovative and aggressive acquisition campaigns. With their vast engineering teams, they do have the luxury of a backbone of technology to support the complexity of running tens of acquisition campaigns per month across multiple geographies, channels and segments as well as track the return of investment of each of them. Not Spotify, Drover or Sky? Don’t worry. Limio Catalog helps companies of any size to manage their subscription acquisition campaigns and tailor their pricing, messaging and offers per channel.