Over the past few decades, industries every has started to adapt the process of subscription for a business model. The subscription-based have increased especially after the arrival of the pandemic. The pandemic has been one of the reasons for the rise of this business like Netflix, Hotstar, and amazon prime. Not only the apps but even different shopping sites have started following subscription-based businesses by providing various facilities to the customers.
Even companies offering services that aims in started adopting subscription by providing value offered in the ownership along with special access. Even before the internet people have been contributing to the subscription-based business model, for example – milk delivery and newspaper. The most important challenge for the subscription is collecting payments on time. Business doesn’t have enough infrastructure to collect recurring payments.
However, the rise of these platforms like phone pe, google pay have processed to begin and carry out many payments process without any huge workforce after the investment in making. These companies always try to keep better insight into the customer behavior as well as their subscription model. This can be said one of the secret ingredients for their success. They always follow a certain kind of logistics like amazon being the perfect example who has made very cost-effective the same made ship products. The development has increased with the feasibility of the business model. It is very essential very much look at the appeal of the subscription model to the business and customers who understand it.
The business model has certain benefits in the market. The first benefit of the business is how they have an apt approach towards business. Once the business starts with a subscription which a solid eye for the customer lifetime and value. The revenue source that the business can easily rely on for strategic planning. The best understanding of predictability is very important. They can keep a track of their customers and their behavior which enables them to keep a better track.
The second reason for this particular business to grow is the “appeal to the customers”. They try to make the customers access the features of the app according to their own convenience. The way the apps are customized and are made user-friendly is also one of the traits that make the app very customizable. A business model which has a customizable feature for the customers to customize makes the nature of the site very durable.
As a whole, the most important feature of the business is that they carry a vision for customers’ insight. The business model has seen a rise in the market because of the presence of a “balancing and profitable” appeal to the customers. They make their business accessible or engageable by reclaiming the customers with the stakeholders.