Subscription-based business models
The advent of new technologies made it imperative for businesses to undergo transformational changes to attune themselves and find better ways to serve their consumers.
In this constantly evolving business scene, the subscription-based business models offer a fresh take on how businesses offer their products and services. These models provide the much-needed agility and flexibility to deliver great products, services, experiences and help you uncover new sources of revenue.
Why Consumers Prefer Subscription
With subscriptions, consumers have the freedom to choose what they want, when they want, how often and how to pay for it. This takes the liability of ownership away from the consumer and brings in greater accountability, transparency and overall better customer experience.
Greater Convenience And Personalization
Subscriptions offer impeccable convenience as consumers can quickly get on board, try products/ services/ features and sign-up for a subscription plan. Consumers can personalize the products/ services and subscription plans to better suit their requirements.
Better Customer Experience
With a subscription-based model, it’s imperative that businesses constantly engage with the subscribers, listen to their issues/ feedback and offer swift and efficient resolutions, ensuring better experience and accountability. It’s also predominant that the businesses offer newer services and features to retain the existing subscriber base and attract new ones, ensuring better value to the subscribers.
Why Businesses Prefer Subscription
Businesses prefer recurring, dependable and predictable revenue flows, as this helps them keep the quality of offerings high and the business booming. Subscriptions if done right can offer businesses solid and foreseeable revenues. This can also ensure businesses constantly attune themselves to the changing market dynamics, subscriber preferences and help them invest in better customer experience and research.
With a subscription-based model, brands and businesses can ensure a long-term relationship with their subscribers. Subscribers once onboard will keep coming back, as long as you keep innovating, offering good value and better overall subscriber satisfaction. This enables businesses to build loyalty and trust. In short, long-term relationships and loyalty drive the growth of these business models.
Subscription businesses can swiftly respond to changing dynamics and can scale better and faster. With a plethora of real-time metrics, user feedback and data on subscriber usage patterns; deeper insights can be generated to swiftly design and deploy value-added services increasing the efficiency. This assists in building strategic ways to monetize the content and expand globally.
“We evaluated few globally renowned solutions and found that
SURE! has functionalities that suit our broadband requirements… we are
anticipating considerable enhancement in our operations.”
-Yen Choi ,
Group EVP / CTO Netcom Africa
The subscription-based models have taken the business world by storm. A slew of new and established industries, brands, businesses both small and big are opting for subscription-based business models to efficiently monetize their offerings. Here are a few industries where the subscription model has become the norm
Pay TV has remained the mainstay of content consumption for millions of consumers around the world and the subscription-based business model is the reason behind it. Now, it is a crucial time for the Pay TV service provider to monetize value-added packages, bundles and other features to increase their recurring revenue.
In this rapidly growing age, multi-play has become an omnipresent and essential commodity, and thanks to subscription models that the industry is thriving. Each day more and more people are looking forward for multiple services through a single platform. This has been leading this transformation, by offering great choice and flexibility to subscribers and a recurring and dependable revenue source to service providers.
OTT has taken the media and content space by storm. Well-planned subscription models and groundbreaking content are responsible for this new revolution. Subscription models work great for OTT service providers, content creators, partners and end-users alike and thus the most preferred way to monetize.
The education space in the recent past has been witnessing stellar growth with more and more learners getting on board. Schools and individual learners are supplementing their existing courses with online modules and resources. The subscription models have been pivotal in this learning revolution by offering wide choices and flexibility to learn according to the individuals wish and will.
Media & Publications
The media space is no newcomer to the subscription ecosystem. Subscription has been and continues to remain the most efficient way to monetize media from e-books to newspapers and magazines. The digital revolution has fostered new opportunities to offer seamless digital content delivery with greater emphasis on better user experience.
Box companies almost exclusively run on subscription models, encouraging the users to subscribe to a variety of timed and tiered plans. With the competition growing steeply, box companies need to ensure that they step up and stay ahead with innovative offerings and monetization options.
The B2B space has embraced the subscription model to offer seamless products, services and support to the consumers. There is a drift towards SaaS offering as a reliable revenue stream based on the subscription model. The B2B space is destined to grow by leaps and bounds as people have already started adapting to connected devices and experiences. Such models predominantly require a platform that is versatile to accommodate business exigencies and to enrich the customer experience.