“Today it seems like everyone is rushing to join the digital membership economy.” And for good reason!
“Lots of companies would love to implement a subscription model, especially one with a sticky online community component. This allows firms to build long-term, profitable relationships with customers; seemingly the perfect solution to the era of digital disruption.”
As a company that provides a platform for subscription businesses, obviously we believe that subscriptions are the way of the future and that we are already firmly ensconced in the Subscription Economy, where consumers prioritize outcomes over products and smart companies are building lasting relationships with their subscribers over time—relationships which can be monetized.
That said, we firmly believe that running a successful subscription business doesn’t just mean slapping a monthly fee on top of a product. This simply won’t work.
Here HBR looks at what separates solid subscription businesses from, well, those that are slightly less solid.
Those subscription businesses that are doing it right are focused on market/service fit (i.e. a good offering that subscribers will want to continue to pay for), identifying and tracking the right subscription metrics (like churn and engagement), and meaningful relationships with their subscribers.
“As long as your success depends on connecting with buyers who have choices, you can differentiate your business by joining the digital membership economy.”
What doesn’t work? Giving lip service to your “subscription model” just so you can try to capture recurring revenue.
Read the full article at: hbr.org
And download our free guide: 9 Keys to Building Success in the Subscription Economy.