The Subscription Business Models They have gained in importance in recent years due to changing consumer habits and the emergence of streaming content platforms such as Netflix, Spotify or similar. Actually, Global spend on subscription apps grew 41% between 2021 and 2020This has prompted many companies to rethink their business and base their marketing strategies on subscriptions, which allow their customers to enjoy products and services for a monthly, quarterly, or annual fee. According to Statista, the popularity of streaming music services is demonstrated by the fact that there are already more than 580 million paying users of this type of platform worldwide. This has resulted in over $17 billion in sales by 2022.
As with subscriptions to a newspaper, gym or online business, a number of guidelines must be established between the buyer and seller, such as the frequency of payment for the product or service, as well as the specific price upon payment, either unlimited access to audiovisual content or receiving one product per month. There are different types of subscriptions, including physical products (shampoo, groceries, etc.), digital (Adobe), content (HBO), or services (Amazon Prime). For this reason, PaynoPain, a Spanish technology company specializing in the development of online payment tools, wants to highlight the benefits that subscription businesses bring to the end customer:
- Ease of Access: By subscribing to a subscription business model, the customer can continuously access the product or service, gaining convenience and security. You don’t have to worry about repeat purchases or keeping up to date with offers. In addition, the subscription makes it easier to plan and distribute personal budgets. In this area, Paylands, PaynoPain’s payment gateway, has all the necessary tools to manage subscription models quickly, securely and easily.
- Better user experience: Registration processes are quick, easy and straightforward from any device. The unsubscribe process is also usually simple. The customer is therefore in control at all times and can decide with peace of mind whether or not to cancel a subscription if they deem it appropriate.
- Permanent updates: Products or services are constantly updated, so customers can take advantage of the latest technology, features, or content at no additional cost. This can make them feel more valued, happier and strengthen their sense of belonging to the brand.
- Hyper Personalization: Subscription companies are able to collect valuable information about customers and their behavioral habits, facilitating the personalization of offers and content. This allows each customer to receive special offers and recommendations tailored to their taste.
- Advantages and added value: Consumers can enjoy additional benefits such as exclusive discounts, special content, free shipping or gifts by entering into a subscription business model. These benefits add value to the subscription business.
«These days, finding someone who doesn’t have a subscription service is like looking for a needle in a haystack. Whether Netflix, HBO, Spotify, YouTube or Twitch. This just reflects the multiple benefits that a subscription business can have for both the brand and the user. Improve the customer experience with personalized offers and provide added value. It is a well-established model and there is no expiration date in sight«, claims Jordy Nebot, CEO and co-founder of PaynoPain.