Guide to Subscription business model and insights

Subscription business models are based on the idea of selling a product or service in exchange for a recurring payment, which might be monthly or yearly. Client retention is more important to them than new customer acquisition. In essence, subscription business models focus on how money is made, with a single client paying multiple payments for prolonged access to an item or service rather than a large one-time price. The economy is currently transitioning toward subscriptions rather than ownership for autos, software, entertainment, and shopping. The customer's lifetime value rises as a result of this (LTV).

We have already discussed in our previous blogs how subscriptions can empower your business. In this blog, we will look into the various Subscription business models and which one is correct for your business.  


Software products as a recurring service 

In the last decade, the software-as-a-service (SaaS) business has exploded in popularity. Providing a software product as a periodic service allows organisations to access cost-effective, rapidly deployable, highly secure, and scalable solutions through a subscription plan.


Subscription box 

The subscription box concept, often known as subcom, allows eCommerce retailers to collect recurring payments in exchange for a carefully designed package of items. Every month, a newly selected box is given to every subscription consumer, allowing them to test out new goods from the collection regularly while paying a recurring fee. Subscription boxes, whether for beauty, fashion, or personal care, are the new ground-breaking concept for attracting young and interested clients.


Subscribe and save

The subscribe and save strategy has been critical in enabling D2C enterprises to achieve ground-breaking growth. Customers who sign up for a subscription plan enjoy a unique discount, assuring a good price and quick delivery. As a result, businesses may create a strong loyal client base. This model enables businesses to make specialised products and services available to their target audience without the use of middlemen in a simple and cost-effective manner. 


Perks-based membership 

Customers who subscribe to such services receive exclusive member benefits on all of their orders. Accelerated deliveries, per-order discounts, early access to sales, or even free delivery are all possibilities. These memberships are growing in popularity because they encourage community development and involvement, which is critical for smaller eCommerce businesses.


Media and entertainment 

On-demand content streaming is one of the oldest types of subscription in the world. Customers pay a subscription fee to access specific content for a set amount of time. Another typical approach of enabling access to material with a paid membership while restricting access for others is the usage of a paywall. The paywall is used by news and publishing portals to provide paid subscribers with exclusive access to their content.



The unexpected, unforeseen, and exponential expansion witnessed in the online learning arena as a result of the Covid 19 outbreak will only continue. Membership-based access model enables edtech companies to provide carefully curated subscriptions to educational courses, services, and support for both children and adults. Subscriptions may be customised based on the level of study, the amount of help needed, and access to study materials.


Make the subscription business model work for you

Churn is the most significant risk for subscription businesses. The good news is that once customers find a service they enjoy, they can be extremely loyal. Here are a few pointers for reducing churn and running a lucrative subscription business:

Be clear about your business goals- Is it a revenue figure, a customer number, or the number of products sold? Whatever your business objectives are, you must keep them in mind while deciding on a business model.

When it comes to price, be conservative at first- Many subscription customers churn rapidly, so don't waste money on free trials or deep discounts unless there's a clear payoff. Furthermore, as your business grows, pricing should be checked, adjusted, and assessed.

Monitor churn- It goes without saying that in order to enhance your service, you should track and analyse voluntary churn (customers who terminate their membership).

Customers should always have a choice- For subscription businesses, a one-size-fits-all price does not work. Allow consumers to select a specific pricing tier depending on their specific requirements. This allows you to appeal to a wider range of buyers, resulting in increased client acquisition.


We at Evolok are helping leading publishers around the world with our subscription system. We have many features including Subscription Management, Product Pricing/Bundling, Payment invoicing, Offer Management. To know more about how we can help your business grow in this new era of the Subscription business model contact us today. 

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