Hello again with a new article!
“Why the Subscription Model Will Be the Future of Your Company and What to Do About It?”
Tien Tzuo’s book ‘Subscribed’ with its green cover greets people with this sentence on the shelves. Perhaps you are one of those who have picked up and examined that book, or maybe even read it…
From magazine subscriptions to Spotify, Netflix subscriptions, we are all on a journey together, and in fact, this is just the tip of the iceberg; subscription companies are growing nine times faster than S&P 500, and we can see that more and more companies are adopting this model as the days go by.
Why Subscription?
In short, today’s consumers prefer the advantages of access rather than the difficulties of ownership. We all have both business and non-business lives. While we are striving to provide better products/services with our team colleagues under corporate structures, we are also end-users and customers of others. We witness even our friends who go to the cinema once a week taking a Netflix membership. In fact, some of us even subscribe to three or four different platforms that offer similar services to Netflix. When we think about the reasons that lead us to this decision as end-users, we can better understand the opportunity lying in the subscription market.
Why Should Companies Work with the Subscription Model?
Even if you won’t make any sales in the next 6 months, knowing that you will have a regular collection every month will probably make everyone happy. Subscription means a monthly and regular recurring revenue. The more important part is that it reduces customer acquisition costs and provides the opportunity to create a loyal customer portfolio.
Secondly, the subscription model will allow companies to achieve predictable revenues. It will create more accurate projections in terms of both growth and shrinkage.
In summary…
Whether in SaaS solutions, pool cleaning, daily meal delivery, etc., in every aspect of life, we anticipate that the subscription model, which offers advantages to both sides of the table, will appear more and more in different sectors.
See you in another article 👋
If you liked the content, you can also check out the articles we shared in previous weeks about the Importance of Reporting for Businesses, Transitioning from Excel to CRM, Consultative Sales, and Creating a CRM Strategy.
