Subscription-based business models have multiple benefits including encouraging customer success, improving buyer retention, capitalizing on convenience, predicting revenue, and many more. Today, subscription models are used in nearly every industry by powerhouse companies such as Netflix, Ipsy, and Microsoft. With the right technology in place, web design, and digital development, your company too can benefit from a strategically designed subscription model.
To begin, what is a subscription-based business model and how does it work? A subscription business model is a recurring revenue model in which customers pay a weekly, monthly, or yearly fee in exchange for products or services, in your business’s case, this may look like a digital product or service such as a membership to an app. Customers can renew their subscription after a certain period of time. For a digital business, this model offers an opportunity to leverage customer relationships to create a steady stream of income.