Subscription Models: Paving the Path to Business Success?
2nd August 2023
If you’ve been keeping an eye on the latest trends, you’ll know that subscription models have taken the world by storm! Our recent social media video showcased our team’s excitement as we discussed our favourite subscriptions and memberships, and we’re not alone in our enthusiasm. With Brits collectively spending over £2 million each year on subscriptions, it’s evident that this business model has captured the hearts of consumers everywhere.
So, what exactly is it about subscription models that have both businesses and consumers head over heels? And could they truly be the future of business? Keep reading to find out.
Firstly, what do we mean by subscription models?
A subscription model is when customers pay a regular fee to keep using a product or service. Although subscriptions might seem similar to memberships, they are technically different.
To find out more about their differences, visit our blog post here.
A subscription model shifts the focus away from a simple one-time transaction, allowing businesses to build relationships with customers while generating a steady income stream. Some famous examples are Netflix, Amazon Prime and HelloFresh.
Why do customers love subscription models?
When it comes to hassle-free shopping, subscription models are the answer. They’re all about making the customers’ life easier. With their seamless experiences and easy access to services, they remove all the stress of making repetitive buying decisions. As a design agency specialising in subscriptions, we have witnessed firsthand the value that subscriptions bring to customers. For example, when we designed and built a website for Hachette Partworks to showcase their Peter Rabbit magazine collection, customers were drawn to a clear understanding of what they were subscribing to and the inclusion of elements they loved.
Our user-friendly website design and build created a delightful customer experience, resulting in a remarkable 68% uptake for the premium subscription offer. This success shows why customers love subscriptions—they appreciate the combination of convenience, personalisation, and engaging experiences that subscription models provide.
What’s in it for businesses? Why are companies moving to subscription models?
Many businesses are making the shift to subscription models, and the reasons behind this move are crystal clear. Unlike traditional one-time sales, subscriptions offer a consistent cash flow that brings financial stability and resilience to companies. This stable and predictable revenue stream allows businesses to rely on recurring income to support their operations and fuel their growth. The subscription model has undeniably become a game-changer in the business world.
Take the entertainment industry, for instance. Streaming services like Netflix and Spotify have revolutionised how we consume content. Instead of purchasing individual movies or songs, subscribers pay a monthly fee for unlimited access to vast libraries of movies, TV shows, and music.
It’s like having an entire universe of entertainment at your fingertips. And for the companies behind these platforms, it’s a win-win situation. The subscription payments roll in month after month, providing a steady flow of recurring revenue that allows them to invest in more exciting content and improvements.
But it’s not just entertainment – software companies have jumped on the subscription bandwagon too. Software-as-a-Service (SaaS) providers like Adobe Creative Cloud and Salesforce offer subscription-based access to their powerful applications. Gone are the days of buying costly licenses for software that needs constant updates.
With subscriptions, customers can now enjoy the latest features and functionalities at a manageable monthly cost. While for the companies, it means a reliable stream of revenue.
So, how can you start your own successful subscription model business?
To launch a successful subscription model, here are 3 basic steps:
1. Understand Your Target Market
The first crucial step in launching a successful subscription model business is to identify your target market and gain a deep understanding of their needs, preferences, and pain points. For instance, when we collaborated with Hachette Partworks on the Warhammer Imperium 40,000 collection, we used demographics to guide our design and build, so that it resonated with the diehard market of Warhammer fans.
By creating buyer personas, you can segment your audience and customise your subscription offering to meet their specific requirements. To delve deeper into the process of creating effective buyer personas, be sure to check out our informative blog post here.
2. Craft an Irresistible Value Proposition
Once you have a clear understanding of your target audience, it’s time to develop a compelling value proposition.
Communicate the unique benefits and value that subscribers will receive from your product or service. Highlight how your subscription offering addresses their pain points and offers an unparalleled experience compared to other alternatives in the market.
3. Build a Scalable Infrastructure
To support your subscription model, you’ll need to establish a robust infrastructure. This includes implementing systems and processes to handle recurring payments, manage subscriber accounts, and ensure reliable and seamless delivery of your offerings. A scalable infrastructure is vital to accommodate the growing number of subscribers and maintain the quality of your services.
Leave the hard work to us…
While starting a subscription model business can be a challenging task, you don’t have to do it alone. At Bopgun Design, we have a proven track record of helping businesses thrive in the subscription industry.
Our agency, based between Bristol and Bath, is fueled by design, creativity, and marketing expertise that has successfully assisted numerous clients in developing and launching their own profitable subscription models.
Take a look at our work page and see our results for yourself.
Conclusion
The growing popularity of the subscription model isn’t just a fad; it’s becoming a game-changer for businesses all around the world.
At Bopgun, we’ve seen the power of subscriptions, and it’s no surprise that businesses are loving the recurring revenue and strong customer connections they bring. If you’re interested in delving into the exciting world of subscriptions, we’re here to offer our expertise and support.
We are a design agency based between Bristol and Bath, passionate about delivering meaningful & lasting results. To find out more about how to contact us, click here.
