Today’s e-commerce landscape is much different than it was only a few years ago, and that’s because it has been impacted in a major way by the subscription economy. Even a few years ago, it would’ve been impossible to predict that millions of people around the globe would be happily signing up for online services which provided them with simple products and services, like clothing or shaving kits, in exchange for a reasonable monthly fee.
It also wasn’t long ago that the only kind of subscription services available to consumers were those offered by your telephone carrier, Internet provider, or cable TV company. Nowadays, subscription services have broadened out considerably, and there are endless numbers of products which are now available to consumers on a subscription basis. Here are some of the reasons for the surging popularity of the subscription business model.
Millennial Influence
One of the reasons that subscription-based products are so popular these days is due to the heavy influence of the millennial generation. As it turns out, millennials are just not as interested in becoming owners of lots of different products, and instead have indicated a notable preference for leasing or renting cars, appliances, laptops, furniture, and software.
Subscription services are meeting a definite need that consumers have, rather than simply helping them acquire any given product. These days, customer attention is not focused as much on the products themselves, as it is on the lifestyles or the public buzz which typically is generated around them. This in turn has reduced the appeal of ownership, while also emphasizing the advantages of renting on a temporary basis.
The millennial generation comprises the bulk of subscribers in the e-commerce world, and for them, signing up for various subscriptions is akin to choosing a personal lifestyle. What appeals to millennials is a life without hassles, and it focuses on their experiences, their travels, and their hobbies, which are all carried out in their free time.
They don’t want to spend time in stores making purchases and instead have opted for the convenience, the trends, and out-of-the-box thinking that differentiates them from their parents. Millennials have shown a decided preference for testing new ways of improving their lives and making them easier.
The Appeal of Customization
People who avail themselves of subscription models when making purchases are generally devoted supporters of customized experiences, and if they don’t get what they want from one company, they’re only too happy to rush to a competitor. This is why many companies that offer subscriptions endeavor to maintain close connections with all their clientele through a variety of personalized communication, as well as surveys and questionnaires.
This approach has demonstrated that higher customer attention generates much greater engagement with a target audience. Because companies have great feedback from their customers, they are able to constantly add new products or tweak existing ones, and that provides customers with the notion that they’re always buying new products and having new experiences. This in turn makes it much more likely that large numbers of subscribers will renew those subscriptions and maintain relationships with the same company.
Today’s Hottest Subscription Trends
When you buy software outright, you’re faced with the prospect of having it become obsolete in a very short period of time, so the advantage of the single payment plan is basically lost.
Recurring billings will generate a constant stream of revenue for a business owner, and that ensures sustainable profits much more reliably than one-time fees possibly could. One of the biggest trends in subscription services these days is bundling products and services. Offering a number of different products or services as a package has proven to be appealing because it has the ability to increase an average order value by encouraging customers to purchase more products when offered discounts.
It’s also a good way of selling less popular products, by including them with products that have much greater appeal. A trend on the horizon is that several companies form partnerships or business relationships where they package their goods and services, so they can jointly charge a subscription fee each month. This will be extremely advantageous to smaller businesses whose brands might be less recognizable than some of the larger corporations.
Another unmistakable trend in the industry is for huge numbers of companies to become involved with the subscription model. Companies like Netflix and Amazon Prime have enjoyed relative monopolies on the subscription service for video streaming, but many more companies have recognized the profits they can make out of this model and are taking steps to become involved themselves. This may end up triggering price wars between these providers, which will enable lower pricing for consumers for these products and services.
On the other hand, there could be a negative impact when so many other companies become involved in the subscription-based model. Customers could become overwhelmed by all the options available to them and might be reluctant to pay for so many separate services which are very similar in nature. All these trends are coming in the very near future, so it won’t be long before we all have a chance to see which ones become the most prominent.
The Kill Bill Subscription Business Model
Kill Bill’s subscription business model is one of the most versatile in the industry and will allow you to carry out all the relevant tasks typically associated with a subscription billing service. You’ll be able use plug-ins to extend Kill Bill’s functionality, you can track key performance indicators in real time and develop your own metrics, and you’ll be able to perform customer service tasks involved with managing accounts and subscriptions. You’ll also be able to change your pricing at any time and efficiently manage all invoices, payments, and subscriptions!
