Types of customer segments

As with all business models, defining the different customer segments is essential in understanding how to best communicate and cater to their specific needs.

For subscription-based businesses, the type of customer segment will be primarily determined by the status of their subscription which can be either inactive or active. Similar to how we choose to subscribe or unsubscribe to programs such as Netflix, the same applies to car subscriptions.

There are three main customer segments:

1. New subscribers
2. Active subscribers
3. Returning subscribers

New subscribers

While this group of customers may be entirely new to your business and your subscription, there may be a select few who may either have: 

• subscribed to a car with another car subscription provider
• an existing understanding of the benefits of car subscription and how it works

Nonetheless, it is still worth explaining how car subscription works for these customers as well as the value propositions of your business - including particular processes and vehicles offered that distinguish your business from other competitors.

Active subscribers

This group includes the customers who are currently subscribed to one of your vehicles. While acquiring new subscribers may be a metric of success, it's important to not neglect your active subscribers for two reasons:

1. There is potential to optimise for revenue per subscriber by either upselling them subscription add ons that may be of seasonal timeliness, or getting them to upgrade their subscription plan should their needs see fit
2. Since these customers have already familiarised themselves with your business, selling to them may be an easier process than acquiring new subscribers

Returning subscribers

These customers include those who were once subscribed to one of your vehicles but have now ended their subscription. Reasons for ending their subscription may vary, however, like active subscribers, they are already familiar with what your business has to offer. Whether it's a special promotional discount or an exciting vehicle arriving in stock, there are many different offerings available to get these customers to subscribe to a vehicle again.