Subscription business models are suitable to launch products or services online for a long-time business. These subscription models help to increase revenue by customer retention. Initially, we may get a lessor return than traditional business buying and selling methods. But later, once we found the right customer base buy funnel or flywheel marketing approaches. The subscription business model offers huge returns over time.
In the subscription business model, we need to offer a product or service with a monthly or yearly subscription. In addition, we can use weekly, quarterly, or even lifetime subscriptions based on the service. Identification of customers with their interest in our core business service is the key to making huge success in these business models. In addition, it helps build a community with customers to maintain better relationships and support their Growth.
Over traditional business, it provides many advantages for customers and business owners that are listed below.
- It provides higher recurring income for the business
- Customer retention helps to simplify a lot of business process
- It is easier to deliver updates and new services to the customers
- Subscription business reduces the cost of finding new customers
- Better financial forecasting with inventory management
- It provides an opportunity to grow as a community
Apart from these business benefits, it has customer benefits as well.
- Customers can find trustable products from their subscription with a brand
- The customer updated with current technology products and services
- No need to travel much to find the best product quest
- Moreover, businesses educate the customer about their carrier growth as a community
Opportunities for Growth in a Subscription model
The scalable business model is the best opportunity to offer products or services to the customer. We can use an upgrade and downgrade resources based on the customers’ needs. Moreover, These business models can provide services directly for customers or business clients. We will see the scalable business model in the next article. But, first, we should look at subscription business models for online product launches.
Recently even automobile industries have been selling their products using subscription business. The airbuses, educational development business, fitness training, and maintenance services are already in a subscription model. It was easy to sell a new product with existing customers because we know them very well. The customer interest and need to be followed by the companies that make both grow well in the industry.
Here, we listed five different subscription business models for various industries to adapt their business. Any of the five models can fit their traditional business of buying and selling into a subscription business model. The five subscription models are listed below.
- Software subscription Services like SaaS
- eCommerce Subscription Services like online shopping
- Accessibility subscription Service like entertainment
- Web design and tools subscription Services like themes
- Maintenance, Repair and Monitoring subscription Services like web hosting
We can start creating online business products or services using the above five subscription services. It will be easier to deliver the new products and existing updates to the customers.
The software development and its client services are now moved to clouds. As a result, the customers do not need to install the software application on their local machine. Instead, they use the centralized cloud software application with login subscription using the client interface. Once customers subscribe to the Software with monthly, yearly, or quarterly license purchases, they can access it with login details.
Most of the softwares are now stored in the cloud, and they provide subscription access to the customers. Software as a Service (SaaS) is one of the best subscription business models with many advantages. We have many SaaS marketplaces to connect the customers and SaaS companies for providing reliable access to SaaS products with maintenance.
Advantages of SaaS Subscription business model
The SaaS subscription has many advantages to the customers as follows
- Customers no need to install the application in their local machines, so less consumption of resources.
- Virtual offices infrastructure can be created using SaaS services so that we can access it from anywhere in the world.
- The SaaS products help find the core business application in one place with experts’ advice and reviews.
- Low cost business start-up possible with SaaS products at scalable subscription.
- We can adopt the new technology to our business easily with SaaS products.
Especially when it comes to subscriptions business, we can have access to a community network. This community network helps develop our business and personal growth as well. The best example of SaaS subscription services is SEO services, Marketing, Sales, tracking, reporting, analytics, and CRM.
The ecommerce subscription business is best suited for reseller business for B2C models. It requires the best hosting solution with no downtime issues. That helps to deliver the product even at a remote location. These ecommerce subscription business model helps to increase sales to local business digitally, even via mobile devices.
We can use google local search and mobile devices to reach the business product at remote customer locations. The online ecommerce store websites require a connection between customers and offline merchant stores. The product shipments are necessary for ecommerce products to be delivered to the purchased customer.
The grocery stores, supermarkets, and shopping centers use subscription business models to retain customers. They offer yearly, quarterly and monthly subscriptions for the regular consumable products. We can sell any regular consumable products with ecommerce subscription stores.
Advantages of eCommerce Subscription business model
Moreover, it has many advantages for the customers.
- Customers can make the purchase even in the home via mobile devices.
- The door shipping helps deliver the ecommerce product directly to the customer locations.
- We can try new products available in the market even with discounts.
- Some ecommerce stores can provide installment payments or weekly payment product purchases.
- The VIP customers are getting benefited with special discounts like amazon prime.
The ecommerce subscription business helps increase the flexibility over customer purchasing methods. An ecommerce subscription helps business people in two ways. First, they use two types of subscription: the product subscription and the customer subscription. The product subscription helps to sell associative products and provide notification on its services and updates. The customer subscription helps to promote new products even at discounted prices.
Educational and entertainment are the best-suited accessibility business subscription services. We can provide live events and recorded programs for monthly or yearly subscriptions in both businesses. The enthronement like TV channels or individual programs subscription can be possible with accessibility subscription.
In the case of education services, we can provide online courses, live teaching, and group training to the learners using subscription services. They provide based on time or courses or even the live session duration. Moreover, we can also provide business tools subscriptions with accessibility services with monthly, yearly, or even lifetime subscriptions.
Here, the customers are provided with login access for the subscribed events, programs, or services. The login will be expired at the end of the subscription period. To get continued services, we need to renew the subscription. Accessibility services are the best model for generating recurring income with customers.
Advantages of Accessibility Subscription business model
Accessibility business model has many advantages to customers as follows
- Customers learn the concepts quickly using online courses when it comes to education.
- The live session with tutors and coaching helps to clarify their doubts.
- The subscription community helps to discuss with other students in the networks.
- For entertainment, customers can subscribe to whatever they require.
- The rerecord program replays help a customer who misses live events.
- It provides full freedom to watch whatever and whenever with a subscription.
The accessibility subscription business providers can make huge revenue by recurring payments when the education sectors need personal Growth and carrier growth of the customers. Whereas the entertainment sector needs the flexibility to choose programs whatever and whenever even at remote locations, make the success for business people.
Web design and business tools are required for the business from its starting stage. Moreover, every stage of business growth needs webpage updates for new products and services. The technology improvement requires responsibility in the landing pages designs. In addition, the rising of social media requires many business tools for business advertisements and their market captures.
In short, the business always requires infrastructure development. In addition, it requires advanced technology tools for visibility of the business services to capture the market. The subscription-based business model for these design and development services helps B2B clients.
Apart from the maintenance and monitoring services, we required development tools for the business expansion, new products or services launch, and migration. So it provides membership subscriptions for the business development tools subscription. These tools are to be updated with new technology and gadgets. Moreover, it requires compatibility over other business tools in the operations. So the website and business development tools are the best choices for the subscription business model. For example, Web themes and landing pages need to be updated during the business growth.
Advantages of web design Subscription business model
The advantages of the design and development subscription service for customers are as follows.
- The freelancers and agencies benefit most from the design and development tools subscriptions.
- We can brand these tools to individuals with white labels and API features.
- The customer needs less initial tools cost for the infrastructure development and business operation.
- The subscription of tools helps to modify the website infrastructure and development changes during the new product launch.
- It provides no compatibility issues by new version availability by the developers.
- Customers can use advanced business features with a recent version of the development tools.
The business tools and development subscription business is to deliver more features in the new version of the tools by feedbacks. The community helps to review the product and offers more trust pilot scores for the products. So customers can have more knowledge before purchasing the product. In addition, it helps business people easier to customer retention with the right product offering.
Every business has infrastructure development, operational tools, and customer relationship tools for the successful long run. These tools are to be compatible with each other and core business services. So the maintenance, updating, debugging, and monitoring are the biggest concern for every business.
Many agencies provide maintenance and debugging subscription services that help entrepreneurs to focus on business activities. Monitoring and maintenance are required until the end of the business. Moreover, these monitoring services can provide the security of business and customer data.
The website operations and integrative customer pages are processed faster with efficiency. In addition, these landing pages’ responsiveness helps us access our business services anywhere, even via mobile device. For example, hosting, security, performance, upgrade, debugging, and monitoring from malicious attacks are the best-suited maintenance services for subscription businesses with WordPress.
Advantages of Maintenance Subscription business model
The advantages of subscription maintenance service for customers.
- The maintenance subscription services mostly require business operations, so the client is focused on the customer operations.
- B2C business saves most of its time to the customer using maintenance services.
- There is no need to monitor technical issues with infrastructure, speed, and performance of the business environment.
- It saves much time during migration and business expansion.
The business monitoring and maintenance service is the best Suited B2B subscription service. It helps most companies to focus on business operations than technology developments. However, maintenance services always shift our business to new technology. Are you ready to choose the right model for your new product or services launch?.
In summary, the subscription business model helps to generate more revenue using recurring income. Moreover, it has been generated by customer retention with strong community relationships. The community can help to develop the business growth with personal customer growth.
Five subscription models are widely used to provide business services, even in the automobile industry. They are Software as a service, eCommerce, Accessibility, Webdesign with development tools, and finally, maintenance & monitoring services.
All the support tools and softwares for the business activities can be provided using these five types in B2B subscription services. When it comes to B2C subscription services, we need shipments for physical products. Moreover, these subscription business services open opportunities to provide scalable business services to the customers.
What is the subscription business model?
A business can offer its product or services to the customer on a subscription basis over the period with login access. The customer can subscribe to business service for a particular time. For example, for a month, quarter or year. The customer needs to renew the subscription for continued access to the business services when the subscription ends. It provides more flexibility for customers to access the service only for the necessary.
Why do we need a subscription business model?
The subscription business provides a more satisfying service for the customer over the long run. Moreover, it creates a brand name in customers’ minds and helps offer more new services or extended service for the existing one with customer satisfaction. Moreover, subscription services provide recurring income and retain core customers for long-run business services.
How to use subscription business model for our business?
The traditional buying and selling business needs to transit to a subscription model to provide the best services to reliable customers. So our VIP customers can be connected in a community by subscription. That leads to building better relationships, making the business know well about the customer, and developing customer service.
What should we get if we use the subscription business model?
The subscription business helps to find the core customers for the business growth with personal customer growth. It provides a more flexible method to use customer earning for the consumable products and their development. Moreover, the scalable option for pricing and service features helps customers choose whatever they require.