The subscription, an excellent business opportunity

The subscription has invaded all sectors thanks to the infamous benefits it provides. All sectors are affected: whether in transport, culture or sport … Although not newer, it does not appear to have lost its color. However, this is not new because, according to history, it took its roots in the 17th century with the development of the written press and the famous “La Gazette” in 1631. According to Forbes, this market will become a market of 220 billion. 2022!

If you want to implement the subscription strategy in your business, first ask yourself about adapting this business model to your business needs. You need to take into account the costs (the current selling price per unit and the cost of service and production among others) as well as the possible customer portfolio.

Subscription without binding

It has become the key factor in subscriptions with a call price and no obligation. Especially in the media, due to being deprived of the captivating continuation of an article, the war reader subscribes wearily, and does not regret it because he is no longer frustrated. Today, however, who are used to using the internet for free, readers have a hard time subscribing. We must also believe that this business model has a flaw, as depriving them of reading also means depriving themselves of, for example, advertisers who look closely at the number of impressions. It has experienced a boom for sports clubs and of course internet and mobile subscriptions … Once the subscription has started, the tendency of the customer is to remain loyal because the subscription facilitates access to him and he can even save his codes for no one has any effort anymore to do.

Subscription-heavy industries

– Online music and video (Spotify, Deezer, Netflix …)

– Computer games

– IT solutions where the SaaS mode (Software as a Service), which avoids the purchase of software that quickly becomes obsolete

– Culture (museums, theaters, cinemas)

– Sports and fitness clubs that offer monthly membership offers with a recurrence principle and with different levels of service

– Transport as Vélib ‘, scooters

– Human relations (Tinder, Meetic ..)

– Coffee capsules

– Pet shop (accessories for your pets, food)

– Alcohol with especially Petit Ballon a subscription to receive wine every month at home.

The numbers to remember

For the third year in a row, Kantar unveils its international DIMENSION study, developed on the principle of a dual view: the goals of industry leaders and consumers.

According to this study, the main reason is given by connected consumers to subscribe to an online TV service related to the content (“the subscription offers TV shows, shows and movies that you can not get anywhere else”). 51% agreed in 2018 and a further 48% in 2019.

52% say they subscribe to a paid online TV or video service. 38% have access to a free subscription service. Thus, 59% of connected consumers have access to a TV / video subscription service, whether it is paid or free. In the case of audio media (including music streaming services): 47% say they subscribe because the service is relevant to their needs; 36% say that avoiding ads is a crucial factor. 39% of newspaper subscribers mention personalization. When it comes to magazines, 43% cite personalization.

The points in the subscription system

For the company, the expectation of customer demand and liquidity management (especially for committed subscriptions) is really the strong points of this economic model. It also generates a regular and predictable business flow, pleasing to the business as it provides better forward-looking management.

From the consumer’s point of view, the subscription is a very practical and easy-to-use model: you pay a sum every month in return for a service or product that you use according to your needs.

With a single click I can cancel: especially on the day when the recipient is no longer satisfied, one click is enough to cancel.

The subscription is extremely convenient and easy to use; we pay an often modest sum per month and we receive a product or service that we want to use and with a single click we can cancel! The benefits for a business are consumer loyalty and financial security due to recurring payments but also the reduction in the number of unpaid bills and is not a challenge because it avoids reminders).

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