SubscriptionBusiness Model

THE RISE OF THE

Sources:

1. Super Subscribers: Disrupting the Subscription Services Model. Rep. Lewisville, TX: Blackhawk Engagement Solutions, 2015. Print.

2. Hutzler, Kyle. “The Rise of the Subscription Economy." The Huffington Post. TheHuffingtonPost.com, 10 Mar. 2014. Web. 31 July 2015. <http://www.huffingtonpost.com/kyle-hut zler/rise-of-the-subscription-economy_b_4548866.html>.

3. Longanecker, Chuck. “Why You Should Use a Subscription Business Model.“ Entrepreneur. N.p., 19 Mar. 2015. Web. 31 July 2015. <http://www.entrepreneur.com/article/243573>.

4. Burkhart, Dan. “Understanding the New Boom in Subscriptions.“ AllThingsD. N.p., 27 Mar. 2013. Web. 03 Aug. 2015. <http://allthingsd.com/20130327/understand- ing-the-new-boom-in-subscriptions/#>.

5. Burkhart, Dan. “Understanding the New Boom in Subscriptions.“ AllThingsD. N.p., 27 Mar. 2013. Web. 03 Aug. 2015. <http://allthingsd.com/20130327/understand- ing-the-new-boom-in-subscriptions/#>.

6. Ludin, Josh. “The Pros and Cons of Running a Subscription Service - Bplans Blog.“ Bplans Blog N.p., 01 July 2014. Web. 03 Aug. 2015. <http://articles.bplans.com/the-pros-and-cons-of-run- ning-a-subscription-service/>.

7. Zwilling, Marty. “Subscription Business Models Are Startup Favorites.“ The Huffington Post. TheHuffingtonPost.com, 1 Mar. 2015. Web. 03 Aug. 2015. <http://www.huffington- post.com/marty-zwilling/subscription-business-mod_b_6779336.html>.

8. Warrillow, John. “How To Start a Subscription Business.“ Inc.com. N.p., 25 Mar. 2015. Web. 03 Aug. 2015. <http://www.inc.com/john-warrillow/how-to-start-a-subscription-business.html>.

9. Zuora Content Team. “9 Keys to Building a Successful Subscription Business.“ Academy. N.p., n.d. Web. 31 July 2015. <https://www.zuora.com/academy/guides/nine-keys-building-suc- cessful-subscription-business/>.

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1815

Percentage of consumers who buy subscription-based products.

# of U.S. & European companies already using or benefiting from a subscription-based business model.M

ILLI

ON

GET STARTEDWITH 8 EASY STEPS.

1 ASK.Who are your customers? What would they buy and for how long?Can your product be delivered?What’s the potential for profit?

4 FINE-TUNE.Does your offering attract enough customers? Could it potentially eliminate customers? Can you tier your offers to attract the most customers?

5 PRICE.Add up the á la carte price of your servicesand then discount.

6 START WITH C-LEVEL CUSTOMERS.Propose the model to C-level customers first.Fine-tune it until they buy. Move up the customer ladder to A- and B-level.

7 USE MULTIPLE SALES CHANNELS.Computer Mobile device PhoneIn-person

Save time

Eliminate need for continuous repurchase

Help monthlybudget planning

Save money

Predict sales and revenue

Manage inventory

Simplify pricing

Retaincustomers

A MUTUALLY-BENEFICIALAPPROACH TO BUSINESS.

For businesses:For consumers:

MembershipProvide members exclusive information via the Web.

All-you-can-eat contentGive unlimited access to content such as movies or music.

Private clubOffer members services or experiences that are in limited supply to others.

Front-of-the-lineProvide red carpet treatment—customers will pay to not wait in line.

ConsumablesAutomatically send consumables such as diapers or cosmetics.

Surprise boxDeliver monthly varieties of a product such as food or beverages.

SimplifierProvide a service that simplifies daily living such as cleaning or maintenance.

NetworkOffer increased benefits as more people join.

Peace-of-mindAlert subscribers to a problem.

CONSIDER THESESUBSCRIPTION-

BASEDBUSINESS MODELS:

2 DETERMINE.Why do customers contact you?Can you respond under a subscription-based model?

3 CONCEPTUALIZE.What will you offer? When? To whom?

If your organization offers a product or service your customers can’t live without, consider offering it through subscription.

8

MAKE IT THE

ONLY OPTION

Once your A- and B-level

customers are on board,

do away with á la

carte services.