setting up a subscription service

Craft a Successful Service Offering Using the Subscription Business Model

Imagine this picture that you are running your business successfully with a steady flow of revenue. However, the future is unpredictable. How would you beat this unpredictability?

Let us help you!

Have a sneak peek into the future. Yes, it is possible. The only thing that you need is analytics and reporting, but first, you need to analyze your business model.

There are various businesses that have not yet transitioned to the subscription business model despite the subscriptions can multiply their revenue and chances for the business to grow in the future automatically increase.

In this article, we are going to tell you all about setting up a subscription service.

Why Subscription Business Model for Services-Based Businesses

Businesses can continue selling their services, so why do we recommend subscriptions? The most basic reasons are the following:

● Predictable Revenue: when you opt for subscriptions, revenue not only multiplies but becomes predictable. See, you succeed in beating the unpredictability that brings doubts regarding the future of the business. For instance, if you are selling IT services, your sales would be satisfactory. However, your sales can be boosted with subscriptions. Try offering the same services as subscriptions. Today, subscriptions are not just a business model but a lifestyle for customers. You just need the courage to find the recurring need for your services and see the magic.

● Customer Retention Rate: When you are not using the subscription business model, customer retention is not your point of focus. Even if you want to retain customers, it can be done to a certain extent. But when you offer services as subscriptions and manage your business from a subscription management system, the customer retention rate increases. The automated system allows users to monitor customer activities to offer them personalized services. And personalization is the key to a better retention rate.

● Customer Retention: When the subscription business model is not opted, you just sell out services. Nevertheless, When you adopt this business model, you need to provide services to the same customer recurrently. Customer retention becomes one of the priorities for which automated software and applications allows user to monitor KPIs. So, it brings an evident improvement in the customer retention rate.

Types of Services That You Can Sell with the Subscription Business Model

Not all products and services are meant for the subscription business model. Here, we are going to tell you which services are the best suited for subscriptions.

Also Read: The Art of Digital Magazine Subscription Services Management

1. Streaming Services

Streaming can be of different types of content. This includes video streaming (e.g., Netflix, Hulu), music streaming (e.g., Spotify, Apple Music), and even live TV streaming services (e.g., Sling TV). So, the point is to offer subscriptions for streaming services. Whether you offer music streaming or video streaming, subscriptions can be offered for them.

2. Software as a Service (SaaS)

Many experts say that the subscription business model is the perfect fit for SaaS companies. Why? Businesses need to get services from SaaS companies recurrently. For instance, there are various companies offering CRM (Zoho, Odoo, Salesforce etc.) and training sessions on how to use CRMs and other applications. So, it is better to go for subscriptions rather than starting a new business cycle again and again for the same customers. When there are subscriptions, the clients just need to subscribe once. When a billing cycle ends after a certain time (one month or a year), the system automatically bills customers and renews the subscription plan.

3. Content & Media

This category includes digital newspapers and magazines (e.g., The New York Times), e-books (e.g., Kindle Unlimited), and audiobook services (e.g., Audible). Readers are never satiated after reading one book or one magazine. They need quality content to read recurrently. Also, the subscription business model is not new for content and media services providers. Since the beginning, content providers have been doing business on this business model.

4. Online Learning & Courses

Online courses and teaching can best be done with the subscription business model. For instance, there are courses on Coursera and edX. Students are asked to subscribe for courses so that they can be provided with learning material, lectures, and tests.

5. Fitness & Wellness Services

Fitness clubs and gyms offer their services. They also arrange proper classes and courses in fitness. Subscriptions help them manage their business as well as their clients. While using the subscription business model, they can even offer membership and build communities of their customers. For different communities, different subscription plans are offered. That’s how the subscription business model streamlines everything for subscription businesses.

6. Financial and Investment Services

Businesses also offer financial and investment services. Businesses need these services after intervals. Take the example of financial audits, a business needs to audit accounts and finances regularly. So, companies offering financial services can go for the subscription business model.

Coming towards the management of subscriptions. No matter which services you offer, subscriptions for your services can be managed in SubscriptionFlow. This platform not only offers the core features of subscription billing, payments, and reporting but also integrates with the top payment gateways and third-party software.

Also Read: Unleashing the Power of Product Subscription Services: A Journey into a World of Endless Delights

So, implement a subscription service into your business, but for subscription management, SubscriptionFlow is the best platform. Contact our team to see how you can sell your services better with SubscriptionFlow.