Why Every Business Will Soon Be a Subscription Business?

This post will be absolutely relevant if you’re looking out for strong reasons to convert your retail business into a subscription business or to start up a new one.

According to the latest research and various reports, it is confirmed that the global pandemic has accelerated the growth and establishment of e-commerce by 5 years straight. The prevailing circumstances have forced entrepreneurs to modify their business strategies and shift their focus from physical locations to an online presence.

Having said that, the endless possibilities that this shift has opened to the consumers is creating an overwhelming experience.

Online platforms provide much wider and elaborate experience, creating a digital fulfillment which comes much easier in comparison to real life experiences. The variety and the ease that these platforms offer is sometimes quite stirring and influencing, causing a lot of confusion and anxiety amongst the consumers. That’s where the scope of subscription business kicks in.

What is Subscription Business Model and How It Differs in Its Approach

Subscription business model is a creative business setup, wherein pre scheduled deliveries of specially curated and personalized products or service, belonging to a special niche are delivered to the customers on a monthly or yearly basis in exchange of a recurring payment over a period of time that is chosen by the customer himself.

Now that we’ve taken a look at the basic idea behind such business models, let’s understand the Benefits of Subscription Business Model.

Unlike a traditional business setup, Subscription Business models offer convenience and personalization to its customers, thereby creating an interesting experience, which in turn helps in retaining them. Consequently, it ensures sustainability and a cyclic flow of revenue for the company.

Consumer Benefits

Recharging the Elements of Surprise and Delight:

When a customer subscribes to a subscription business model, he chooses to trust and rely on the idea and products provided by the company for a particular period of time. The company in turn, creates such experiences for the customers, that it rekindles joy and an element of surprise for them. The delight of tearing open a box when it arrives right at your doorstep every month with a curiosity to discover what lies inside, is just what you wanted can truly be a rewarding experience.

Cutting Through the Confusion and Limitless Hassles of Aimless Online Surfing:

The endless possibilities, variety and exposure provided by online forums can sometimes create an extremely overwhelming situation for the consumers. This is where the subscription business models come to the rescue. They absolutely save the consumer from the struggle of browsing, choosing and going through the entire process of purchasing by providing a monthly service or delivery of products that the consumer requires on a repeated basis.

Business Benefits

Predictable and Anticipated Revenue:

The subscription model allows one to take calculated risks and provides anticipated profits. A viable business idea provides loyal clientele thereby providing a predictable revenue stream.

Lower Retention Expenditure:

Lower expenses are incurred in retaining the customers as the plan offered by the business involves automatic renewal of payments as long as the customer is interested in a long term association with the product and thereby the company. This in turn also ensures a low churn rate.

Better Customer Relationships:

Customers often get attracted to subscription models for the ease and convenience that is provided to them. The option of personalizing and choosing further provides another incentive to stick to the subscription. Therefore, the customer enjoys the viable and flexible approach of the business and continues to trust and subscribe ensuring a long term association.

Conversion into Subscription Business Model

Taking into account the vast number of opportunities that Subscription Business Models provide, it would be harmless to say that the conversion of existing business setups to that of a subscription model can be extremely enterprising. The promising opportunities that rise from this shift can allow one to grow and expand in multiple ways. But the transformation, as enticing as it may seem, requires a thorough analysis and critical study of your existing setup, to make sure the transformation comes out successfully.

Let’s Take a Look at A Few Prerequisites to Convert to A Subscription Model:

Evaluation of The Current Business Setup:

A complete knowledge, understanding and awareness of your business strengths and struggles cannot be emphasized on enough, in order to expand, transform or for a business to thrive. Understanding the aim of your business and the value that it provides to your customers is one chief aspect of any business organization.

Understanding Your Customers:

Customer relationships is a key to successful business. If you understand the needs, requirements and expectations of your customers, half the battle is already won. This helps the business owners in creating and curating subscription plans in such a fashion that they continue to attract and retain their customers for a longer period of time. Therefore, a thorough knowledge of your customer base and regular communication is extremely vital.

Recognizing Your Key Point:

In order to persuade customers to subscribe to your business, you need to ensure a compelling business proposition that provides value and encourages them to take up the plan. This is where the need and power of advertising comes into picture. Make sure to cover and convey all your key points to customers in a way that they are compelled emotionally to subscribe to the business.

Proper Research and Its Implementation to Avoid Future Challenges:

Transformation of an existing business setup to the one of subscription isn’t going to be a cake walk. Changes in the beginning are difficult, but if backed by proper research and study it can lead to extraordinary results. The potential areas of interest that might require proper assessment and evaluation include finance, wherein you might have to change the entire budgeting, investments and maximizing profits. Sales and marketing teams for instance will have to reorganize themselves to customer workflow instead. This is again going to be a rather new approach to effective selling position and taking your sales game up.

Product development would have to be reorganized from a customer point of view and workflow.

Studying Customer Behavior and Using the Same to Upsell:

Observing the patterns of customers, their behavior, requirements, engagements, etc. would allow you a glimpse into the mindset of the consumers. It thereby becomes much easier to design and deliver in a manner which is customer oriented, yielding positive feedback and a low churn rate, which in turn ensures the success of any business. Customer satisfaction which leads to a long term association, is ultimately the backbone of a successful subscription business.


The points and details mentioned above will surely help you to analyze your current business strategies and all the fundamentals of a subscription business model. My Subscription Business is one such forum, which is a one click destination to all your subscription business queries. It is a portal that’ll provide you all subscription business solutions along with effective planning, layouts and customer accessibility. To conclude, let’s take a look at another fact which says that by 2022, 53% of all software revenue would be generated from a subscription business model.

We hope this article provided you an insight into the subscription business possibilities and its dynamics.

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