Over the past few years, the subscription business model has grown by leaps and bounds as companies realize that by offering subscriptions they can have an opportunity to build strong, long-term relationships with their customers as well as increase the predictability and profitability of their revenue.
There are many verticals that most people would agree are a natural fit for subscriptions - publishing, software as a service, or telecommunications, to name a few. However, some of the other industries that have embraced the subscription model may surprise you, and in this 2 part article we’ll look at a few of these and how they are using subscriptions to attract more customers, increase revenue, and build positive relationships with their consumers.
Transportation companies are using subscriptions in a variety of ways. Car-sharing services such as Car2Go use monthly subscription plans to provide consumers with access to vehicles. Companies like Onstar provide subscriptions for services like roadside assistance, vehicle diagnostics, or navigation.
Traditionally the business model for the gaming industry has been customers paying upfront for a complete product. But the popularity of online games has changed that. Games like World of Warcraft offer players’ monthly subscriptions as well as one time purchases like name and appearance change, character transfer etc. Xbox Live has a monthly membership fee as do many casino-type websites that offer games like online poker. For many online game sites there is a monthly recurring fee; one time components as mentioned above; and in many cases usage fees.
In our next post we’ll look at online dating and real estate. And if your subscription based business is in a non- traditional vertical, let us know! We'd love to hear about how you're using subscriptions.
Check out Part 2 of the series here!