Subscription Revolution
What is the subscription revolution, where has it come from and how do I join?
Reflecting on business practices and trends will reveal that industries are always adapting and adopting new ways. Equally things are ever changing for the consumers in the market. Inflation, rising energy costs, job insecurity, house prices etc. have all become the contemporary topics of the decade. Many consumers are left unsure about their futures and need to plan to ensure that they can afford their monthly overheads. But there are ways that businesses can innovate to support consumers whilst securing their future income streams.
What does this mean for business?
Following the financial crisis, there have been winners and losers. Industries such as travel, print, home furnishing and building suppliers are amongst those that were hardest hit by the recession. On the other hand, industries such as video streaming, gaming, food, and health care managed better. Interestingly there is something that each of this second list of industries all had in common. They all pivoted towards offering bundled subscription services.
There are several advantages for subscriptions, along with a few reasons why they’ve succeeded.
For Consumers:
Firstly, subscriptions offer financial security for consumers, during a period of uncertainty. A fixed price in exchange for a fixed product offering. Subscriptions also offer curation in a digital era. An era that started with an explosion of consumption and bingeing has now firmly established itself in the minds of consumers. Another advantage exploited by the rise in subscription services is the delivery of quality service and convenience offered to consumers.
For Businesses:
There are many reasons why businesses can benefit from adding subscription revenue. Subscription services offer regular and predictable income streams. They enable engagement, long-term interaction, and enhanced relationships with consumers. Against the stable and predictable income businesses can provide a better quality of service, better predict consumer needs, and better develop future services and products.
Innovation and Disruption
Whenever an industry introduces innovation disruption generally follows. When the Mp3 was introduced to the music industry, record labels fought against the technology. Innovative companies came from outside the traditional industry and built successful alternatives (Apple Music, Spotify etc). When the cost of developing RPG games based in massive worlds became greater than the market tolerance for the price of a single game, they moved to the cloud and bundled the products into phased release (Xbox Game Pass, Steam etc).
Consumers are accustomed to paying monthly subscriptions for mobile phones, television packages, cars, gyms, home food delivery, and more services. The willingness comes from the need for convenience, curation, and customer service.
Time to Make a Change
At Consorticon, we believe that digital disruption and innovation can be brought to all industries. As pathfinders, we are positioned to support your business in establishing ways to pivot, develop, innovate, introduce, and disrupt your industry. We bring over 25 years of experience in disrupting and introducing changes to markets. Having worked in veterinary, dental, insurance, cycling, finance, telecommunication, media, and many more we bring transferable knowledge to each new project.
If you’re ready to pave the way for a new subscription model and make a difference by building a better and more sustainable future in your industry
