Did you know that companies which have implemented a subscription service are seeing a thirty to forty percent increase in customer lifetime value?
It’s no wonder that many businesses are following suit, but the question is, can yours?
Recently, I went to a big subscription event where the key message was ‘the end of ownership’. Basically, this means that people don’t want to own as many things anymore, but they still want to use them.
Let’s take Netflix for example. Nobody really wants thousands of DVDs clogging up space in their homes anymore. It’s far more convenient to subscribe to their content instead.
The key is to do it properly. If your subscription service doesn’t add value to the customer, they might end up feeling locked in, which is a massive turn off.
If you look at the companies who are doing the subscription model right, you can pick out three mega trends. Firstly, there’s the rise of the subscription economy and secondly, there’s the sharing economy of using things without having to own them. The third trend, which is the secret to a successful subscription service, is personalization.
Netflix is a great example of a company who is getting all three of the trends right. Obviously, there’s the subscription element, there’s a massive library of shared content and you can personalize the service until your heart’s content.
I’m excited to share my ‘weird’ experience with a subscriber model with you and explore how you can implement a subscription service into your business. Watch the video here:
In this episode find out about:
- - Why you should consider adding a subscription model
- - How to add value to your subscription model
- - The three mega trends
- - The companies who are getting the trends just right
If you missed it, to watch my first video in the innovation series, click here.