The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Business Success In the Subscription Economy
Music, wine and razors are all items that businesses are providing through a subscription-based business model. But whilst these pay-as-you-play services have a lot to offer, the unpredictable drop off pattern and increasing competition with introductory offers, can make it a risky business model.
Stand out data:
- The demand is there with 89% of millennials, and 72% of Gen Xers, already signed up to a service-subscription
- Over four years, men’s grooming box, the Dollar Shave Club, have boasted a revenue of $150 million
- Since switching to a subscription-based service in 2013, Adobe have secured a further 10 million subscribers
Credit report experts, Credit Angel, have created a guide that outlines the ingredients of a successful subscription-based business, and highlighted the powerhouses using this model: https://www.creditangel.co.uk/blog/having-more-owning-less