Talking Business - Jim Fosina
Subscription Marketing is taking off as time-conscious consumers find providers they like, are confident in, that provide fast and reliable delivery and can bill their credit or debit card directly. This used to be called Continuity Marketing where merchandise or insurance products are offered to consumers by direct marketing and the order is accepted and billed to a credit card. Remember the “Appointment Book” programs that banks used to offer? A favorite of mine is the annual replenishment of the Daytimer appointment books that I used for nearly 25 years.
A big believer in Subscription Marketing is Jim Fosina, CEO of Danbury, CT based Fosina Marketing (fosinamarketinggroup.com). Prior to founding his firm in 2003, Jim had a background in package goods management at Kraft Foods and subscription marketing at Scholastic Corporation.
When we sat down for a chat, Jim described why Subscription marketing is taking off:
“There is strong demand for ongoing, repeat fulfillment of consumers wants, needs and desires”, Jim said.
Automatic billing to a credit card and home delivery are two time-saving factors that make Subscription Marketing attractive to consumers. Jim feels that many of today’s consumers feel this way: “…if it comes into household on a regular basis, I’m time impoverished, just send it to me when I am due.”
Online grocery shopping and home delivery is a natural for subscription marketing. As markets evolve in the mobile world, new converts are entering the Subscription Marketing space. Jim sees Travel and Auto Leasing as two such industries embracing Subscription Marketing. In travel, time shares can be turned into a subscription business, which does not tie the consumer to anyone particular property. Auto Leasing can provide more options and flexibility when purchasing a car, especially at the high end of the market.
The vital element for subscription marketing is the credit or debit card account the consumer designates for repeat purchases. This “go-to” account will be a favorite of consumers as it provides retention, usage and length of tenure on file - all characteristics of a successful card account customer. Jim points out that record keeping of purchases is another key benefit to having a designated card account for subscription marketing purchases.
“We find a lot of consumers actually use individual credit cards for their subscriptions to keep track of how they are being charged, it becomes a reconciliation”, he said.
Jim Fosina will be a featured panelist at the Marketing to Moms Conference m2moms.com October 2-3, 2018 in New York City.
See the full video interview below: