Shopify or Easystore. Advantages of the upgrad subscription economy model So why are more and more companies or websites starting to adopt the subscription economy model?
We have sort out the main reasons as follows:
Can bring a stable source of income to the company For any business, the subscription model can provide a more stable and prictable income stream. Instead of relying on one-time large sales to grow performance, the business can be maintain through continuous small income.
This model can ruce the financial risk of flow more stable
Improve customer stickiness When customers become your users and subscribe to your services, they are more likely to use your products for a long time. Because users are already accustom to your products, most consumers, once they enter a state line data of inertial consumption, will not be influenc by external factors or rationality to a certain extent, and will repeat the products and services.
They have bought before
Moreover, the fact that changing products requires additional learning costs will also affect consumer purchasing decisions. In this way, user stickiness this analysis will help you see what works will naturally increase. 3. Cross-selling opportunities When customers subscribe to one of the many services you offer, they are more likely to try other products or services from your company.
For example, users who use
Adobe Photoshop may be more inclin to try other Adobe software such as Illustrator, Indesign or Premiere. 4. Convenient to build brand ecology The subscription model also gives companies the opportunity to build an entire ecosystem around core services. Amazon Prime is a good example. With a Prime membership, users can enjoy multiple services such as express delivery, streaming, shopping discounts, etc. This not only increases users’ dependence tg data on the brand, but also creates a more diversifi source of revenue for the company.