The subscription, an excellent business opportunity

The subscription has invaded all sectors thanks to the notorious advantages it provides. All sectors are impacted: whether in the field of transport, culture or sport… Although it is not recent, it does not seem to have lost its color. However, it is not new because according to history, it took its roots in the 17th century with the development of the written press and the famous “La Gazette” in 1631. According to Forbes, this market will become a market of 220 billion in 2022!

If you want to implement the subscription strategy within your company, you must also ask yourself the question of adapting this business model to the needs of your company. You will need to take into consideration the costs (the selling price per current unit and the costs of service and production among others) as well as the possible portfolio of customers.

Subscription without commitment

It has become the key factor in subscriptions with a call price and without commitment. In the media in particular, by dint of being deprived of the passionate following of an article, the war reader, tired, subscribes and does not regret it because he is no longer frustrated. Today, readers who are accustomed to using the Internet free of charge, however, have difficulty subscribing. You also have to think that this business model has a defect since depriving it of reading also means depriving yourself, for example, of advertisers who take a good look at the number of views. It has experienced a boom for sports clubs and of course internet and mobile subscriptions… Once the subscription has been initiated, the tendency of the customer is to remain loyal because the subscription facilitates access to him and he can even save his codes for no longer have to make any effort.

Subscription-intensive sectors

– Online music and video (Spotify, Deezer, Netflix…)

– Video games

– IT solutions to offer SaaS mode (Software as a Service) which avoids the purchase of software that is quickly obsolete

– Culture (museums, theatres, cinemas)

– Sports and fitness clubs that offer monthly membership offers with a principle of recurrence and with different levels of service

– Transport such as Vélib’, scooters

– Human relations (Tinder, Meetic..)

– Coffee capsules

– Pet shop (accessories for your pets, food)

– Alcohol with in particular the Petit Ballon a subscription to receive wine each month at home.

The numbers to remember

For the third consecutive year, Kantar unveils its international DIMENSION study, written on the principle of a dual point of view: that of industry leaders and that of the consumers they target.

According to this study, the top reason given by connected consumers for subscribing to an online TV service is content-related (“the subscription offers TV programs, shows and movies that you cannot get elsewhere “). 51% agreed in 2018, and another 48% in 2019.

52% say they subscribe to a paid online television or video service. 38% have access to a free subscription service. Thus 59% of connected consumers have access to a TV/video subscription service, whether paid or free. In the case of audio media (including music streaming services): 47% say they subscribe that the service is suitable for their needs; 36% say avoiding ads is a determining factor. 39% of newspaper subscribers mention personalization. When it comes to magazines, 43% cite personalization.

The points of the subscription system

For the company, the anticipation of customer demand and cash management (especially for subscriptions with commitment) are the strong points of this economic model. Also, it generates a regular and predictable flow of business, comfortable for the company since it allows better forward management.

From the consumer’s point of view, the subscription is a particularly practical and easy-to-use model: you pay a sum every month in return for a service or product that you use according to your needs.

In one click, I can cancel: especially the day when the beneficiary is no longer satisfied, one click is enough to cancel.

The subscription is particularly practical and easy to use; we pay an often modest sum per month, and we receive a good or service that we will use and in one click we can cancel! The advantages for a company are consumer loyalty and financial security due to recurring payments but also the reduction in the number of unpaid bills and is not a gauge because it avoids reminders).

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