At Cratejoy, we’re very interested in what it takes to make a successful subscription box. We’ve noticed that many of the fastest-growing new subscriptions are started by existing Cratejoy entrepreneurs, launching an additional subscription box.
Tip 1: Leverage Your Existing Customer Base
One example comes from Filip Boksa. He started Surprise My Pet as a subscription box for dogs, and later added a subscription box option for cats in order to grow the business. “One of the biggest clues that will tell you that it’s time to open up a second subscription, is if people are asking if you have a subscription plan for other products,” said Boksa. “For us, people were always asking about cats.”
Launching a new box in a similar vertical is a great way to add revenue to a business. Boksa was able to leverage his existing customer base to quickly scale up the second box. He can also cross-sell boxes to households that have both cats and dogs – and make two sales instead of one.
Tip 2: Apply What You’ve Learned
Jameson Morris has helped build a number of different subscription box businesses: Conscious Box, Escape Monthly and Yogi Surprise.
In an interview on Behind the Box, Jameson said, “There’s a learning curve with figuring out how retention works and what keeps people subscribing to a subscription service. What are your value propositions? Did you create a product for a niche to where they perceive it as a necessity?”
Jameson’s two previous subscription businesses helped him launch the third, with over 1,000 subscribers in the first month. “With Yogi Surprise, I went into that business knowing exactly what I wanted to do, which was very helpful,” he said.
Kate Gray, another subscription entrepreneur, said the lessons she learned with Terra Bella Box were very helpful for starting her second. “I didn’t really do a prelaunch on Terra Bella Box, and I think it was a big mistake,” Gray said. “That was back before Subscription School existed and I was really just learning as I went.
“I did it right with Fairy Garden Chest and managed to have about 10-15% of my email list sign up on my opening day, which was wonderful. In general, though, just having a basic understanding of how the business works, and especially how to manage it on Cratejoy, was very helpful when starting a second box,” Gray said.
Tip 3: Don’t Overwhelm Yourself
Running even a single subscription business can be overwhelming. If you’re planning to start a second, make sure to have processes in place to keep the work manageable. This could mean hiring staff, outsourcing aspects of the job (such as fulfillment, customer service or marketing), or perhaps even bringing on a partner with complementary skills.
Kate Gray said, “If you are going to run multiple boxes, you really need help. Customer service and curation take up most of my time. I do not think it would be possible if I did not use a fulfillment center to pack and ship Terra Bella Box. I also use a social media team to help with my blog and posting to my social media channels, as well as a photographer. It is definitely doable, but not without help.”
Final Thoughts
Starting a second subscription can be a great way to expand your business and grow your revenue. After starting one subscription box, you have a much better idea of what’s required to be successful with the second. You’re also familiar with all the tools (like Cratejoy), which can help you launch much faster.
If you’re looking for a new niche, see if you can leverage your existing audience to help launch new products. Or try launching into an entirely new niche that’s seeing strong demand on the Cratejoy Marketplace.
Have you already launched a second box or are you thinking about it? Let us know in the comments.
Cratejoy is an all in one subscription commerce platform that includes everything you need to start your own subscription commerce business online. Try it free for 14 days.
