Remember when people used to say, "Customer is King!" Well, think again. In today's evolving and highly technological society, "Convenience is the new King." Consumer behavior and buying habits have changed dramatically over the years and are trending towards a more simple and stress-free shopping experience. Fast, Easy and Cheap are the three magic words that have changed the way we do business forever.
More and more companies recognize this fast-moving trend and jump into the subscription business world with incredible success. The likes of Netflix, Dollar Shave Club or DropBox are just a few companies that have revolutionized the software-as-a-service (SaaS) approach and hail in billions of dollars in revenue each year. Some might call it lazy and a trend that's going to fade - others call it genius and convenient. The bottom line is, today's society prefers subscriptions and is asking for more! Both customers and companies can benefit from this relatively new and fast evolving trend, and here is why:
Convenience for Company and Customer
This one is a no-brainer. Customers like a service or a product, subscribe to it and get it conveniently (and regularly) delivered at their convenience without having to re-order it each month - SIMPLES! In return, the company receives a one-time or split payment, for a fixed term, without having to operate a cash register or wait a 30-day payment term.
We are all guilty of it. You sign up for Netflix once, and life will never be the same again! Netflix doesn't have locked in contracts. Netflix lets you cancel at any time, but in all honesty though, who cancels Netflix? People pay $10 each month for an incredible amount of value. Sometimes people's credit cards get charged without them even noticing it. It is such a small amount, for an awful lot of fun and no customer ever needs to go through a checkout process again.
Subscription models are in for the long run. Unlike other more project-orientated alternatives, subscription businesses try to provide value over time. As a subscription service provider, it allows you to cater to customer requests and design needs as they change. It's a win-win situation for client and company and builds a stable level of trust since you make customer needs the center of your product offering.
The number of subscription-based businesses increases daily, and there appears to be no shortage of new players. Everyone wants (and should have) a piece of the pie! Enhanced technology, user-friendliness and a drop in price make it worthwhile, even for small businesses to consider a subscription-based approach in their daily quest of doing business. It sure is a different way of doing business, but if I can do it, you can too!