The subscription business model is here to stay forever because this business model here in India is growing exponentially.
It is assumed that the market size of these subscription models is Rs 1,200 crores in 2017-2018 but now it is expected to reach $478.2 billion by 2025.
What is a subscription business model?
Subscription business models are basically based on the idea of selling a service or product to receive recurring( Monthly or yearly) subscription revenue. This model is focusing more on customer retention than customer acquisition.
This compounding growth in subscription revenue is what makes customers so powerful here. Through subscription, customers become more valuable the longer they use your services and products.
Popular subscription-based businesses
It doesn’t matter anymore if you’re a SaaS company or streaming service, or a subscription box; the first step to a better understanding of the model is by looking at some successful subscription companies across whole industries.
Here are some tips for your subscription business model
- Determine your goals
Adoption of this model in your business requires you to define these goals early.
This helps ensure you’re building the best pricing strategy possible for your own specific goals.
When your recurring( monthly or yearly) revenue is tied directly to the monthly or annual fees with long-term strategic goal points.
2.Providing a better experience
Most of us know about this simple equation i.e. more customers equal to more revenue.
That’s why signing up for your subscription model service needs to be as easy as possible.
A great customer experience will improve your acquisition numbers over time and create a great image in the market.
3.Easy billing process
Don’t lose out on your revenue because your subscription billing system isn’t the best or reliable.
Most modern software services have a complex process involved in the account billing system and you need to fix all of them.
4.Develop strong relationships with your customers
A subscription business model is dependent on strong and ever-lasting customer relationships. If your customers aren’t happy with the value your service provides on a daily basis, they might be discounted.
Focus on retaining customers forever.
5.Change pricing often as you refine your product
Subscription-based pricing models are highly adaptable and it’s easy to test and evaluate your prices on an ongoing basis in order to maintain the constant insert of your customers
So this is how you can create a successful e-commerce platform, if you still have any queries then connect us at https://bagisto.com/en/contacts/
