This may seem hyperbolic, but we are very serious when we say that coffee is sacred. For many people, their morning coffee is just that — a sacred, personal ritual by which to ground their mornings and jumpstart their day. Don’t believe us? Well, have you ever seen how impactful a bad cup of coffee can be for someone in the morning? Catastrophe.
All this is to say that coffee can be deeply personal. Everyone has their favourite drink and their preferred brew. Some people are so specific as to dictate the measurement of their grind. But we get it; they aren’t simply being pedantic. It’s their iced latte, after all.
In light of the deeply personal relationship between a person and their coffee preferences, the trend of coffee subscription programs has grown recently. More and more people and café owners are turning to subscriptions to supply their coffee, from the amateur barista with their own at-home coffee station to the seasoned coffee master running their own shop.
Coffee subscription programs present a real opportunity for new clientele, and a deeper relationship between you and your customers, as well as a new, diverse delivery model. Our experts at Coffee NQ don’t want anyone to miss out on this exciting new business model, so here is everything you need to know about launching your own coffee subscription program, from design to delivery.
Understanding the Coffee Subscription Model
There are many types of coffee subscription models available, based on different coffee products, output, and customer base. The brilliant thing about the subscription delivery model is that nearly any kind of product can be delivered almost anywhere consistently.
From wholesale roasted beans to ground coffee sachets to single-use pods, subscriptions can offer clients a fuller sense of customisation and variety. Some businesses sell weekly or monthly bean deliveries to businesses and directly to people’s homes, and they can choose when they want to opt out in a delivery cycle.
Some places offer in-person pick up of their own custom blends. A subscription service also can help you maximise sales of your other products by adding them into bundles. There are also opportunities for membership tiers and rewards, and discounts.
Many coffee businesses have seen regular success with the subscription delivery service model, like coffee pods, protein coffee powder, and coffee blends. You too can have a taste of the same success with the right tools and just a little creativity… and maybe a sugar or two.
Step-by-Step: How to Build Your Coffee Subscription Program
Building your new subscription program may seem like a challenge at first, but you likely already have all the necessary tools in your business. Here is how you can build your new subscription program in six steps.
Step 1: Define your target market
Determine who you want to sell your subscription model service to. Are you targeting coffee shop owners, restaurant managers, hotel cafés, or individuals at home? Are you appealing to casual coffee drinkers, for baristas in training, or for business owners looking to invest in amenities for their premises?
Once you know who you want to sell to, then you can decide which products appeal to that audience most and will be easily deliverable.
Step 2: Choose your subscription model
With your audience in mind, you can then choose your subscription model based on products and frequency. Are you going to sell coffee beans, ground coffee, instant coffee, coffee pods, or coffee brewing accessories? What kind of delivery options are you going to offer, weekly, fortnightly, monthly, etc.?
You can even expand them into tiered packages or bundles for people going through lots of products at once, like ground coffee sold with coffee filters to businesses regularly every month.
Step 3: Price it for profit
Now you can do some math and price your products and their delivery periods for profit. Be sure to balance affordability with your margins. Take into consideration the cost of shipping the products in relation to the pay periods per subscription.
In a way, it’s no different than your own personal delivery service out of the shop, and you may even operate that way with this model. As long as you’re organised, you can likely make any method work for you.
Step 4: Select the right technology
Speaking of organisation, make sure your technology is appropriate for managing a subscription service program. Look into integrating your new subscription offerings into your current POS. You may be able to charge people directly from the same till and sign people up there in-shop.
You may also want to look into investing in CRM software for managing your subscription service. There are plenty of ecommerce tools out there, too, and even AI may be a valuable asset in managing your new system.
Pro Tip: alongside finding the right tech for managing your subscription, consider also investing in coffee equipment for providing added value to prospective customers on-site. A commercial-grade coffee machine on your business premises can help showcase the quality of your coffee products, and even be used to demo some coffee recipes.
Step 5: Set up reliable logistics
No matter what kind of subscription model you adopt, your delivery logistics need to be airtight and not add too much strain on your day-to-day operations. Will you offer delivery on a weekly basis or in-store pick-up?
And if you are delivering them, will you do it or will you outsource it to a delivery service? Pursue whichever logistical output system works best for your business without overexerting your resources. Be sure to balance new operational costs into your budget, as well.
If everything is running smoothly, then you should be reaping in the new profits in no time!
Step 6: Create a seamless sign-up process
The best way to get people to sign up for your subscription program is to ensure it’s simple to sign up for. Create a webpage that is easy to find and navigate so new customers can sign up then and there.
Make sure this site is mobile-friendly, too, so anyone can join in even on their phone. The key to a successful coffee subscription program is flexibility, letting coffee lovers get the coffee they want, how they want, when they want.
Marketing Your Coffee Subscription
Now that we’ve discussed the need-to-knows for building your new coffee subscription program, it’s time to explore the fun stuff: marketing! You’ve built a foolproof subscription service but now people need to know it exists.
Here are easy ways to market your new service to current and potential customers.
Deals & Promotions!
Promote your service in-store with signage and loyalty programs. Offer special perks and discounts for first-time subscribers!
Online Marketing
Be sure to make the most of online marketing. Use social media, email, SEO, and Google Ads and Meta Ads to get as much reach online with your new service.
Limited-Time Teases
Offer limited-time discounts for order spaces within a certain window of time. Have fun with releasing drops of special, limited-time bundles and products only available for a short time via subscription.
Leverage Storytelling
Let the subscription service program speak to your larger branding and image. Leverage storytelling to highlight what makes your program special, highlighting goodwill elements like farm-to-cup, sustainability, and charitable efforts.
Common Mistakes to Avoid
There’s a saying in the coffee world, that sometimes to make a cappuccino you’ll need to burn some milk. Basically, no coffee subscription program is perfect and yours may not take off right away without some hiccups. There are some common mistakes you can avoid though to ensure greater success.
Underpricing Subscriptions
Please make sure you are pricing your products and labour for what they are worth. Your coffee is not worth less just because it’s being delivered out of the shop. Be honest and transparent for your products and for the service reliably delivering them every month.
Complicated Cancellation Policies
Do not over complicate the cancellation process for your service. Some people may want to try it out and find it doesn’t work for them. The fastest way to burn customers is by making them feel trapped in a scammy, hard-to-get-out-of subscription service…faster than burning milk, that is. Keep it simple and make the CANCEL SUBSCRIPTION button easy to read and find on your site.
Ignoring Delivery Costs
Be careful not to ignore the variations in delivery costs, especially if your business has no prior experience with freight and shipments. Be aware of the fluctuating costs for delivering out of state, over the weekend, and over public holidays and take them into account when budgeting your prices.
Coffee Subscription Success, Brought to You by Coffee NQ
Coffee isn’t just a beverage, but a ritual, a comfort, and a daily necessity for many. That’s why a well-crafted coffee subscription program isn’t just a smart business move, but a way to deepen the connection with your customers and meet them where they are, at home, work, or on the go.
With the right planning, tools, and creativity, you can turn your coffee business into an ongoing experience your customers look forward to at any time. Whether you’re a café owner, a roaster, or a budding coffee entrepreneur, there’s never been a better time to explore the subscription model than today.
Ready to launch your own coffee subscription? Let us help you build the perfect program. For over ten years, our team at Coffee NQ have provided tailored wholesale coffee solutions for local business owners of all backgrounds. Whether you’re operating a local café, a hotel or inn, or even a retail store with your own in-store range, we’ve got the wholesale café supplies to support your coffee offerings – including any subscription services.
Browse through our shop to find all the perfect coffee solutions for your business, or contact us today to explore custom packages and scalable solutions for your café and beyond.
