Subscription-based businesses are gaining momentum in the modern world rapidly. Along with the expanding technological support, indeed subscription-based businesses are advantageous in many ways. So what are the major advantages that a business based on subscription model offers? Let’s check!
- Ease of customers – The main reason why the subscription-based business model took birth in the first place is of course, the main advantage of the system and that is, ease of the customers. Customers in need recurring need of certain goods need not break their head everyday to get it from the market or even ordering. They can simply subscribe for a certain period and forget about it. The goods will reach the doorstep without any botheration. In olden days, we have seen the subscription business model for newspaper and milk in nascent form. But in today’s world, our lifestyle changed a lot. Now we order even meals in office and take regular service of a parlor and many many other kinds of stuff. So subscription business model gained momentum mainly stemming from people’s increasing need and decreasing time.
- Predictable cash flow - Subscription business models can prove convenient for the business owners as it gives a near clear picture of the money to come in. With the ready list of consumer need, you can plan to procure goods with much lesser risk.
- Better customer relation – Though this pointer is bit tricky, as I would love to count it under positive only. Subscription based model means long term relationship with the customers. And therefore much longer period to understand and study customer behavior. Also, long term relationship can allow time to make up in case any goof ups been made rarely, in a way, higher tolerance from the customers. However, business has to be conscious of persistent performance and quality. Because just as gaining one customer in subscription business means gaining a long term prospect, losing one means long term business loss.
- Easier for successive marketing - Just as discussed previously, that customers stay longer with the subscription-based businesses, they get a ready database for their successive marketing policies and market their newer launches. Marketing budget can be hugely saved when you have easier access, also you can expect a considerable return as compared to approaching a total new mass.
In our next post, we will discuss how technology can aid or boost a subscription-based business. Till stay, stay tight to space.