Subscription businesses have become increasingly popular in recent years, with companies like Netflix, Spotify, and Dollar Shave Club leading the way. These businesses offer a convenient and cost-effective way for consumers to access products and services on a recurring basis. However, for subscription businesses looking to expand into new markets, there are unique challenges to consider. In this guide, we’ll explore how subscription businesses can unlock global growth in Australia and New Zealand.
Understanding the Market
Before expanding into a new market, it’s important to understand the local market conditions. Australia and New Zealand are both developed economies with high levels of internet penetration and a strong e-commerce culture. According to a report by the Australian Bureau of Statistics, 86% of Australian households had internet access in 2018-19, while in New Zealand, 93% of households had internet access in 2019. This makes both countries attractive markets for subscription businesses.
In terms of consumer behavior, Australians and New Zealanders are early adopters of new technology and are comfortable with online shopping. According to a report by the Australian Communications and Media Authority, 80% of Australians made an online purchase in the 12 months to April 2020. In New Zealand, online shopping is also popular, with 60% of consumers making an online purchase in the 12 months to June 2020, according to a report by NZ Post.
Localizing Your Offering
When expanding into a new market, it’s important to tailor your offering to local preferences and needs. This means taking into account cultural differences, language, and local regulations.
In Australia and New Zealand, there are some unique factors to consider. For example, both countries have strict regulations around subscription billing and automatic renewals. In Australia, businesses must provide clear information about the terms of the subscription, including the price, payment frequency, and cancellation policy. In New Zealand, businesses must obtain explicit consent from customers before charging them for a subscription.
Another factor to consider is local payment methods. While credit cards are widely used in both countries, alternative payment methods such as PayPal and Afterpay are also popular. Offering these payment options can help to increase conversion rates and make it easier for customers to pay for your subscription service.
Marketing Your Subscription Service
Once you’ve localized your offering, it’s time to start marketing your subscription service. In Australia and New Zealand, social media is a popular marketing channel, with Facebook and Instagram being the most widely used platforms. Influencer marketing is also popular in both countries, with many businesses partnering with local influencers to promote their products and services.
Search engine optimization (SEO) is another important marketing tactic. By optimizing your website for local search terms and using local keywords in your content, you can improve your visibility in search engines like Google and attract more organic traffic to your site.
Finally, it’s important to consider the customer experience. Providing excellent customer service and support can help to build trust and loyalty among your customers. This can be achieved through channels such as email, live chat, and phone support.
Conclusion
Expanding into new markets can be challenging for subscription businesses, but with the right approach, it can also be highly rewarding. By understanding the local market conditions, localizing your offering, and marketing your subscription service effectively, you can unlock global growth in Australia and New Zealand. With their high levels of internet penetration and strong e-commerce culture, these markets offer significant opportunities for subscription businesses looking to expand their reach.
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