A few years ago, subscription business models, where customers agree to a recurring payment for a steady delivery of products or services, were rare.
Asides from the technical challenge of implementing and managing such a model, most leaders recognized the market wasn’t ripe. Customers frowned at the idea.
Now, with the breakthrough examples of Spotify or Netflix, subscriptions are more common than ever. And companies that have mastered the subscription business models are reaping the benefits.
These are the major advantages of subscription business models
Subscriptions promote customer loyalty
The purpose of subscriptions is to speed up the growth of sales, strengthen the value chain, and increase customer loyalty. Customer loyalty is one of the major challenges for leaders worldwide and requires monitoring the customer’s preferences, needs and purchasing behaviour.
With the exponential growth of e-commerce, the reality is changing, and it is necessary to create sales channels that are more attractive to the end customer, but also allow better management of business and boost sales.
Discover the payment solutions trends that will mark 2021
Throughout this easypay Talk, we explored the business model of subscriptions to highlight how easypay is supporting companies in their journey to implement a subscription business model. The guests of this conversation are Luís Dinis, Managing Partner of Growvox, Sebastião Lancastre, CEO of easypay, and André Jordão, CEO of Barkyn.