Make no mistake. The move to the subscription economy is in full swing. The traditional single transaction-based product purchase model is being replaced by a subscription-driven relationship-based model. This new paradigm puts the customer and their relationship with your company as the highest priority.
Companies like Netflix, Birchbox and Complete Nutrition have learned that the convenience of a subscription model for their client equates to a higher new client value for their company.
Now hang on to your hat, because a new wave of entrepreneurs many flush venture capital bucks at, are jumping on board and stirring up the model as well as their competitors, both brick and mortar and online.
Case in point, The Tie Society. Why drive to Macy’s or Nordstrom to search through their selection of ties and then spend $50 or more on a tie that might be out of style later this year? Both companies also have e-commerce sites which would keep you from making the drive, and easing your ability to peruse the selection, but Jake Kuczeruk, CMO of the Tie Society, thinks he knows a better way.
Like Netflix for ties, subscribers pay $20 per month and then make a choice. They can use their funds to buy one new tie each month, or … wait for it … receive a tie, wear the tie, mail the tie back, receive a new one! Subscribers can receive and return up to 3 ties per month. This takes the subscription business model to a new level.
Do you have a product that could benefit from this model? Whether your product is tangible or virtual, getting into a subscription-based relationship with your clients is a win-win.
Navigating these waters can be treacherous though, and that’s why many enterprise companies, as well as entrepreneurs, partner with Member Solutions. Whether it’s the automation of recurring charges, or a need for PCI compliance, Member Solutions has the team, the skills and the infrastructure to take your company into the NEW subscription economy.
To learn more, contact our Enterprise team at 267.287.1035 or click here for a one-on-one consultation.
Rick Ellis is a Business Development Executive with over 20 years’ experience operating a membership based company. Rick has experienced firsthand the types of unique challenges present when using a recurring billing business model. Rick enjoys working through complex business models to find and leverage every opportunity to optimize profit, and reduce risk.