The fundamentals of subscription models have not changed with new technology. They provide recurring revenue, have a predictability and loyalty, give insights into consumer behavior, and provide unlimited marketing benefits to aggregated audiences. The growth of subscription based products is being fueled by delivery advancements and ambiguity of new technologies.
Creating a new kind of subscription based product is challenging and entrepreneurs should be aware of the business complexities that can be created through digital subscription services. Customers have a high level of expectation and expect to receive consistent content quality, delivery, and enhanced functionalities. People pay for the experience and access, not content. When content is involved people are paying to access it, not for the content itself. It’s vital to understand that they are subscribing to an experiential service, not to content.
Multi-platform access is a big deal – and TLM think’s it is a must have for those of us creating subscription services today. It’s important that designers create experiences that are ubiquitous and integrate into natural behavior in a way a user can’t imagine living without. Winning strategies will also have a form of exclusivity and provide an experience that it is hard to get anywhere else at the price that is being offered. When created intelligently your service should let users get something for far less cash than they would have to pay through more traditional outlets. To keep people subscribed you must have an above average customer experience and and ubiquity in your market or be a much cheaper option. The best entrepreneurs will figure out how to accomplish all three.
great read!