What is the subscription economy?
The subscription economy refers to the increasing presence of subscription-based businesses in today’s ecommerce landscape. In subscription-based business models, companies sell products or services that recur on a set cadence, paving the way for lasting customer relationships that can lead to revenue growth and increased customer lifetime value. As subscriptions can take a multitude of forms and involve a wide variety of product offerings, many industries feed into the subscription economy, including the software industry, food and beverage industry, and more.
Best business practices for subscription services
As more and more subscription businesses enter the ecommerce landscape, subscription companies must provide their customers with ongoing value that goes beyond their products or services. By responding to consumer needs, listening to consumer attitudes, and collecting customer feedback, subscription companies can foster long-term relationships with their subscribers that lead to increased lifetime value, increased brand loyalty, and greater brand awareness. Another important strategy for subscription model businesses is to make offerings as flexible as possible in terms of product swaps, delivery dates, add-on products, and more.