Interested in finding out more about pet care subscriptions?
In this quick 2-minute video, Tiaan Dreyer, CEO at Knose Everyday Pet Care explains why you should consider introducing pet care subscriptions (or plans) sooner rather than later in your veterinary practice.
(You can also scroll down to read an edited transcript of the video.)
Subscriptions in the veterinary industry (2 mins)
Read an edited transcript of the video:
Why should practices consider going on subscriptions and doing it sooner rather than later?
Well, one of the things that a lot of companies are cottoning on is the superiority of subscription revenue over traditional transactional revenue.
And as a vet, if you’ve got a Greencross, NVC or another corporate in your area – they are all doing subscriptions. One of the things about a subscription plan is if you contrast it to traditional transactional revenue, then you might say traditional transactional revenue is a bit like dating – you might take this person for a date or that person for a date.
A subscription is more like a contract – it’s like a marriage.
Practices we’ve looked at that have clients on subscription plans show that most clients don’t cancel plans that have been running for two years. Most don’t cancel – there might be a one per cent cancellation rate – which means that those clients are loyal to a single practice, they keep on going back to that practice and only that practice.
Whereas with traditional transactional revenue, if I need to take my pet to the vet today I have a choice – do I go to this vet or that one? Now I might usually go to one but if something happens and there’s a long queue and I can’t get in today I might go to the other. With subscriptions, you’re unlikely to see this kind of behaviour.
Now that’s really good if you already offer your clients a pet care plan subscription but what happens if you don’t and there’s a Greencross or NVC down the road from you? If you don’t offer your clients a pet care plan, and one of your clients happens to visit a Greencross or NVC and signs up for one of their subscription plans – you haven’t just lost the one visit, you’ve lost the client for good.
This is why it’s very important, especially if you’re in an urban area where you have a lot of Greencross and NVC practices near you, to get on subscription plans sooner rather than later so you can lock your clients to your practice, rather than losing them for good to some of the big corporates offering subscriptions.