The Subscription Economy is all about paying a set amount to regularly receive products, services, or content. 📦✨
Also known as subscription commerce, what really matters is that everyone in the business world is super eager to try out this subscription framework. In the realm of software, especially with the rise of the cloud, many have bravely tossed aside the old package business models for subscription-based success stories. Think MS 365 or Adobe’s cloud services, and even mobile apps are jumping on this subscription trend! 🚀
According to McKinsey, the Subscription Economy can be categorized into three types: continuous replenishment of everyday items, curation for product selection, and unlimited access to specific product lines. But, as these categories are based on past examples, there’s plenty of room for other creative subscription models to emerge. 🌟
The reason why the Subscription Economy is so hot is because it fosters a lasting relationship between producers and consumers. Unlike a one-time purchase where you have to compete for attention again, a subscription ensures continuous engagement. So, how do you shift a service into the subscription realm and boost subscriptions? It’s all about understanding the essence of subscriptions. The key words here are ‘stability’ and ‘anticipation’. Customers choose subscriptions because they want consistent quality without the hassle of repeated decisions. Thus, creating a model that satisfies both aspects is crucial. While ‘stability’ is important, fulfilling ‘anticipation’ is the real game-changer. Companies are putting a lot of effort into crafting optimized curation models for this purpose. 📈
Take NEW NEEK, a news platform that used old-school emails as a delivery method and achieved remarkable growth within the Subscription Economy. They succeeded by analyzing their audience and reproducing content that resonated with them. Of course, there are bold experiments like Amazon’s Dash Button service, which revolutionized content delivery not as a producer, but as a platform. 📩
While it’s essential to transform business models into subscriptions from the perspective of value delivered to customers, the foundation of the service should be a thorough understanding of its unique business nature. Just like how a great outfit needs to be tailored to fit you perfectly, a subscription model must be crafted to suit its business. 👗
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