Why 50% of Businesses are Adopting Subscription Based Models
Any market can be driven by business innovation, but the greatest innovations come through an analysis of customer needs. Subscription services are nothing new, but the vast scope that they offer businesses today is only just being realized by companies that are willing to pivot and change the way they operate.
Customers Want Subscription Services
Subscriptions are in some ways like renting, but without the downsides. You may feel it is better to buy a home rather than rent an apartment, but look at it like this – can you afford to buy a building outright?
And are you responsible for every aspect of the building? If your rented apartment springs a leak, someone else needs to fix it. If you own the building, it’s on you! While there are certainly benefits to owning, subscription services make access to products and services easy. Why go to a store and browse through DVDs to find one you want when you could already be at home watching the same thing on Netflix?
Why commit to spending thousands on a new car when you can subscribe – yes, subscribe – to a car instead?Products are no longer the focus for any successful business, as cultivating a relationship and building loyalty with a customer base are more important.
The Ease of a Recurring Billing Platform
To be effective, a business needs revenue. In a traditional business, this might necessitate finding new customers every day, sending out invoices, collecting payments, chasing late payments…in fact, the billing process can become more of a full-time job than running the business itself.
With a subscription ecosystem in place, customers will be automatically charged month after month. Automation allows for the collection and chasing of payments, freeing up plenty of time for other business activities.
Finding new customers will still be required but will become a lower-priority concern when a basic subscription income is guaranteed for products or services every month.
It will allow for projections for the future to be more accurate and new paths for growth to be identified with ease.
Choosing to Use Subscription Management Software
Subscriptions are what consumers want, and businesses benefit from having a subscription platform in place.
The key is finding an adaptable platform that works how you want it to, with a pricing structure that is clear and transparent. Xion Global checks all these boxes by providing simple management of any kind of subscription, automation to keep on top of payments, and a simple pricing structure for everyone.
It’s the ideal platform to get your subscription services under control.