Should Your Business Be Offering A Subscription Package?
By 2027 the global subscription and billing market will be worth $11.1 billion. This increase in subscriptions is because of two main factors. 1. The rise of subscribers to existing brands. 2. The proliferation of new subscription-based models. Moreover, the end-user industry segments are plenty. They include telecom, healthcare, media and entertainment, retail, and IT, among many others. With the pandemic forcing people to distance themselves from the outside world, 22.5% of subscription businesses accelerated growth (ZDNet, 2020).
Today, the subscription-based model in businesses is picking up more steam. Think about music and movie streaming or even planned meals. Our local gyms have a subscription-based scheme as well. Now, online classes and apps do too.
According to Tien Tzuo(a Taiwanese-born American tech entrepreneur), subscription-based models are the future. Getting steady revenue streams makes more sense than intermittent sales. He also went further by saying that “if you’re not shifting to this business model now, the chances are that in a few years, you might not have any business left to shift.” Subscription-based models are also more beneficial to customers, especially with automatic recurrent payment schemes.
Also, this is not limited to straightforward digital offerings. Even businesses like Fender guitars got into a subscription-based model. The Fender Play subscription (Zuora) service offers a video music teaching service. This goes hand-in-hand with its overall business. It builds a long-term relationship rather than just a sale.
Take Amazon, for example. The company has been doing well with its Prime subscription service.
Today, aspiring entrepreneurs and established businesses are thinking of building their consumption-based models because it is the main benefit of getting a steady income. Also, with a scheme primed for easy automation, you can get your costs down. You can earn a steady income while paying less; that is a good deal.
If you would like help conceptualizing a subscription model for your business, our business consultations are exactly what you need. Contact us today to push your business into the future.