What is Membership Plan Feature?
With 47shops, you may offer your customers savings plan. For example, you may create a plan of INR 10,000 to pay at one go and in return, Customers would get INR 1000 every month for 12 months in their wallet for purchasing from your app or website. In this way, Customers would get INR 12,000 for paying INR 10,000 only and you would get loyal customer base along with advance money.
What is the minimum duration of Membership plan, that can be offered to the customers?
Minimum 1 month plan can be offered. If you offer 1 month plan, Customer wallet would be recharged immediately.
How does it benefit you, as store owner, by offering membership plan to your customers?
Suppose you offer a plan of INR 5500 to your customers with 6 months validity and offer them INR 1000 every month in their wallet for next 6 months. In return, you would get loyal customers for next 6 months and a more consistent sales during the period. A more deep calculation about store owner's saving is mentioned as below
Average User Acquisition Cost: INR 150 per User
Average User Retention Cost: INR 50 per user per month
Average Advertising Cost and Discounts cost for conversion: 5-10% of each sales
Above Data is based on the case study of more than 300 stores and may vary depending on the products, store location and several other factors.
As you can see, Customer Acquisition and Retention involves a lot of overheads, you can minimize them by offering such savings plans in which a customer is retained because he has actually invested in your store for a certain period.
Moreover, you get advance money which might help you in acquiring more customers, making sustainable marketing plans or even expanding your business.
What would be an ideal plan duration?
It totally depends on your brand value and can be differentiated based on the same. However, we highly recommend that you should not offer a plan of more than 1 year of duration, as it may not attract much customer base. If you are a renowned brand in your area or in a city or state or all over India, then go for a longer duration like 1 year. If you are a startup or an existing company with little customer base, then start by offering 3 or 6 months plan to gain confidence in your customers.