The subscription, an excellent business opportunity

The subscription has penetrated all sectors thanks to the infamous benefits it offers. All sectors are affected: be it transport, culture or sport… Although it is not recent, it does not seem to have lost its color. However, it is not new, because according to history, it has its origins in the 17th century with the development of the written press and the famous “La Gazette” in 1631. According to Forbes, this market will become a market of 220 billion by 2022!

If you want to implement the subscription strategy within your company, you must first consider how this business model can be adapted to the needs of your company. You must take into account the costs (the current sales price per unit and the costs of, among other things, service and production) and any customer portfolio.

Subscription without obligation

It has become the key factor in subscriptions with a call price and without obligation. Particularly in the media, by being withheld from the captivating sequel of an article, the war reader subscribes and does not regret it because he is no longer frustrated. However, nowadays, accustomed to the free internet, readers struggle to subscribe. We also have to remember that this business model has a flaw, because depriving them of reading also means depriving themselves of, for example, advertisers who look closely at the number of views. It has boomed for sports clubs and of course internet and mobile subscriptions… Once the subscription has started, the tendency of the customer is to remain faithful because the subscription facilitates access to him and he can even change his codes save for no more hassle.

Subscription-intensive industries

– Online music and video (Spotify, Deezer, Netflix…)

– Computer Games

– IT solutions for which the SaaS (Software as a Service) mode avoids purchasing outdated software quickly

– Culture (museums, theaters, cinemas)

– Sports and fitness clubs that offer monthly membership offers with a principle of repetition and with different service levels

– Transport such as Vélib’, scooters

– Human relations (Tinder, Meetic..)

– Coffee capsules

– Pet shop (accessories for your pets, food)

– Alcohol, especially the Petit Ballon, a subscription to receive wine at home every month.

The numbers to remember

For the third year in a row, Kantar unveils its international DIMENSION study, developed from the principle of a dual point of view: that of the market leaders and that of the consumers they target.

According to this research, the main reason given by affiliate consumers to subscribe to an online television service is content-related (“the subscription offers television programs, shows, and movies that you can’t get anywhere else”). 51% agreed in 2018 and another 48% in 2019.

52% say they are subscribed to a paid online television or video service. 38% have access to a free subscription service. For example, 59% of connected consumers have access to a TV/video subscription service, paid or free. In the case of audio media (including music streaming services): 47% say they subscribe because the service is relevant to their needs; 36% say avoiding ads is a determining factor. 39% of newspaper subscribers mention personalization. When it comes to magazines, 43% mention personalization.

The points of the subscription system

For the company, anticipation of customer demand and cash management (especially for subscriptions with commitment) are real strengths of this economic model. It also generates a regular and predictable flow of business, comfortable for the company as it enables better future management.

From the consumer’s point of view, the subscription is a very practical and user-friendly model: you pay an amount each month in exchange for a service or product that you use according to your needs.

I can cancel with one click: especially on the day when the beneficiary is no longer satisfied, one click is enough to cancel.

The subscription is very practical and user-friendly; we pay an often modest amount per month, and we receive a good or service that we are going to use and with one click we can cancel! The benefits for a business are consumer loyalty and financial security through recurring payments, but also the reduction of unpaid bills and is not a challenge because reminders are avoided).

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