Subscription Businesses 101
What's a Subscription Business Anyway?In a subscription business model the customer pays periodically in exchange for a product or service. Subscription businesses are your Netflix, gym membership, and loyalty cards. At its core, the subscription business model is simple—grow recurring revenue through the acquisition and retention of subscribers.
How Do I Measure Subscription Performance?The goal of any subscription business is growing total recurring revenue with long-term relationships. Businesses pay close attention to subscriber attrition and member growth.
How Can I Make My Subscription Business Perform Better?A successful subscription business starts with a happy subscriber. Better customer support, more opportunities to engage with your brand, and a reliable product will decrease churn and positively impact the bottom line.
- Offer upsell and cross sell opportunities with customer upgrades and additions. Subscribers are always looking for ways to optimize
- Offer a tiered pricing plan. Let your customer pay for exactly what they want and need
- Use freemium plans to get people in the door and engaging with premium features
- Source more leads and try artificially increasing your net of potential customers
Upselling is when your business offers add-ons for more money. Upselling is when your clothing subscription offers a high-fashion premium edition for an extra $50/month.
Check out our upsell tips, tricks, and strategies