Today's consumers live in a subscription economy, 1to1 Media reports.
Customers are aware of advances in technology, and are more apt to want their products quicker and with greater convenience. Switching to a subscription-based model can help businesses give customers the control they crave, subsequently gaining their trust and creating a higher lifetime value.
"The ability to access instant information at the touch of a button has … raised customer expectations, causing instancy to become paramount for the success of many companies." LN Balaji, president of ITC InfoTech USA, told the news source.
In addition to providing convenience, subscription businesses also create recurring revenue for providers and improve relevancy to more effectively meet customers' needs. What's more, offering the ability to customize a subscription (i.e. filling out a personal preferences form) lets people pay for services they use the most and adjust at any time. This increases customer loyalty and satisfaction and improves retention.
Forbes notes that in order to successfully implement a subscription-based system, managers must master the metrics of their customer base, such as, how many customers they can address, how many can be retained and how much revenue can be earned per customer.