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Subscription Business Models: Reliable Revenue

Updated: Mar 9

Online subscription business models have been gaining popularity; with new delivery services for everything from meals to diapers, subscription boxes that promise to send carefully curated items, and much more.

As more businesses adopt the subscription model, companies are starting to look for newer, and better ways to manage their subscribed customers; whether it’s one on one or as a group. Whether you operate a straightforward eCommerce business that’s been doing well for years; or are getting your business off the ground, it’s important to shake things up and make sure you’re meeting your customers’ needs.

The introduction of subscriptions will create new revenue streams for your company by allowing you to tap into this evolving market. Whatever your company’s offerings are, creating a subscription service will benefit your customers, which in turn will help you.

Subscriptions and Revenue

Companies shouldn’t just think of short-term ways to make money; instead, they need to find ways to generate consistent income to reach their full potential. This is especially true for eCommerce businesses as it’s normal for sales to fluctuate, soaring one day, and all but disappearing the next. Subscription-based business models introduce some normalcy and predictability to this unpredictable, chaotic industry.

Switching over to, or integrating subscriptions into your business, will give your company a clearer understanding of how much revenue it generates at any given time. Additionally, your company will also have a clear understanding of how many subscribers are on each tier, and when their billing cycles will occur. Subscriptions introduce a stream of reliable, recurring revenue that your company can count on.

Predictable revenue adds stability, while the additional information empowers your company to make smarter decisions about how to spend its marketing dollars, what to invest in, and whom to target.

Tiered Subscriptions are Flexible Subscriptions

It’s become a standard practice for a lot of subscription-based companies to introduce multiple tiers to their subscription packages. These tiers let companies target different audience segments by creating different pricing levels, delivery schedules, etc. Allowing the site’s visitors to pick and choose the option that best suits their needs.

Tiered subscription options give customers more flexibility, which often increases conversion rates.

The more flexibility your company can offer, the better; sure, more tiers will need more work to set up and manage. But with them, your company will see more significant gains in conversion rates and long-term profits while establishing itself as an inclusive company that truly caters to its users.

Beyond Tiers: Group Subscriptions

As subscription models continue to develop, more and more companies have started offering group subscriptions. By introducing group subscriptions to their offerings, companies expand their targets from individual customers to groups and organizations by providing digital access to all (or some) of their members.

Group subscriptions allow companies to quickly and easily generate unique signup forms to group members, allowing them to register into the group.

Gift Subscriptions: Leveraging Loyalty

If your goal is to sell more subscriptions with less hassle, you might want to consider giving your customers a way to purchase and manage subscriptions for others. Gift subscriptions will allow your company to harness your most loyal customers’ enthusiasm; and doubles as a great way to gain popularity through word-of-mouth.

Subscription gifting allows customers to purchase a subscription for another user, granting them the full benefits of the subscriptions.

Give Subscriptions a Shot

Whether you’re targeting individuals or groups, subscriptions are a great, customizable way to generate predictable, recurring revenue. They create loyalty and allow your company to automatically process payments and deliver services or access to content on schedules chosen by your customers.

Now that you know the benefits of subscriptions, are you thinking of implementing them in your business? Or do you have a subscription-based business and are looking for more customizability? Get started with a free trial, or schedule a demo call with one of our experts to begin implementing fully customizable subscription strategies.


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