Subscriptions: the new El Dorado of customer loyalty
Posted: Thu Dec 05, 2024 6:00 am
Subscription, long associated with media and dematerialized services, has metamorphosed into a powerful growth lever , progressing between 5 and 9 times faster than traditional businesses over the last 6 years according to the Zuora study, Subscription Economy Index, conducted with the Harris Poll firm on subscription consumption trends published in March 2021. This evolution marks a significant change in the way consumers interact with brands and products.
Subscription isn’t just another option in the marketing arsenal; it’s become the battleground on which customer loyalty is won or lost. Ignoring this model means choosing to remain in the shadow of those who embrace it, because acquiring a new customer now costs up to seven times more than retaining an existing one. And in this game of loyalty, subscription isn’t just an asset; it’s the key .
In this article, we will explore in detail why and how subscription has list of australia whatsapp phone numbers become an essential tool for customer loyalty , examining its benefits, as well as the different forms this business model can take.
Article_Subscription-Loyalty-Customer_Hero
Summary
What is a subscription program?
Why integrate subscription into your marketing strategy?
The advantages of the subscription
The different types of subscription and examples
7 Best Practices for Subscriber Management and Retention
What is a subscription program?
A subscription program is a business model where customers commit to paying regularly to access a product or service . This model, which took off in media and digital services, is now diversifying into a multitude of sectors, including those that deal with physical products. The subscription stands out for its ability to establish an ongoing and dynamic relationship between the company and the customer, thus promoting deep and lasting loyalty.
In this context, according to a Papernest/Ipsos study, the French accumulate an average of ten subscriptions per month, illustrating the massive adoption of this economic model. This figure, which is constantly increasing, reflects the growing popularity of subscriptions in areas as varied as entertainment, consumer products, and value-added services.
At the heart of this model is the idea of convenience and personalization . Customers value ease of access and the consistency of services or products provided. For businesses, this translates into recurring revenue and greater financial predictability. Additionally, subscription programs allow for valuable data collection on customer preferences and behaviors , giving businesses the opportunity to optimize their offerings and personalize their communication.
Subscription comes in a variety of forms , tailored to the specific needs of consumers and markets. For example, in the media sector, it can mean unlimited access to digital content, while in retail it can involve regular delivery of everyday consumer products. This flexibility makes the subscription model particularly attractive and adaptable, able to meet a wide range of needs and expectations.
Subscription programs also create a sense of belonging and community among customers. By subscribing, customers are not only making a purchase, they are often joining a group of people with similar interests, which increases their engagement and loyalty to the brand. This community dimension is a major asset for companies looking to build a lasting relationship with their customers.
In short, a subscription program is much more than just a commercial transaction. It is a relationship strategy that benefits both businesses and consumers by offering an enriched, personalized and engaging experience.
Why integrate subscription into your marketing strategy?
Acquisition vs Retention
It can never be said enough, but today acquiring a new customer costs between 5 and 7 times more than retaining an existing one . According to a Profitwell study, acquisition costs have increased by 35 to 60% over the last 5 years . Subscriptions therefore appear to be a way to better manage your marketing expenses since, according to Zuora, an undisputed authority on the subscription economy, 70% of subscription revenues come from existing users . This then underlines an indisputable truth: loyal customers are the pillar on which sustainable growth is based.
Article_Subscription-Customer-Loyalty_Subscription-Acquisition
The end of ownership
Additionally, consumer mindsets and behaviors are changing. We are entering an era that Zuora defines as “ the end of ownership. ” This growing trend reflects a fundamental shift in how consumers perceive ownership and value , privileging access and experience over physical ownership of a product.
Today, thanks to Decathlon Location for example, we can rent our bike instead of buying it. This subscription even includes very useful services such as an anti-theft device, “theft and breakage” insurance and regular maintenance.
Article_Subscription-loyalty-Client_EndofOwnership
Faced with this new paradigm, not integrating subscription into your marketing strategy amounts to refusing to ride the wave of the future, preferring to cling to a raft in the ocean of market indifference.
The advantages of the subscription
Beyond marketing costs, the subscription model offers a host of other benefits for both businesses and consumers, transforming the way products and services are marketed and consumed. Here’s a deeper dive into these benefits:
The benefits for businesses:
Recurring and predictable revenue : Subscription provides a stable and regular revenue stream, essential for financial planning and long-term growth. This predictability allows companies to better manage their budgets and invest more strategically in R&D and marketing.
Deep customer insights : Subscription programs provide valuable data on customer preferences and behaviors, enabling businesses to personalize their offers and target their marketing campaigns more effectively.
Increased customer loyalty : By providing a consistent, quality customer experience, businesses build customer loyalty. Subscribers are more likely to become brand ambassadors, sharing their positive experiences and attracting new customers.
Optimized inventory and resource management : Thanks to better predictability of demand, companies can optimize their inventory management and reduce costs associated with excess or shortage of products.
Developing Long-Term Relationships : Subscriptions create ongoing interaction with customers, fostering the development of deeper, more meaningful relationships.
Benefits for consumers:
Convenience and simplicity : Subscriptions offer a hassle-free shopping experience, where products or services are delivered or accessed regularly without additional effort on the part of the consumer. This convenience is especially appreciated in daily routines, such as the automatic replenishment of everyday consumer products.
Personalization : Many subscription programs offer customizable options, allowing customers to choose the products or services that best fit their needs and preferences. This personalization improves the customer experience and increases satisfaction.
Flexibility : Modern subscriptions often offer the flexibility to smooth out payments, change, pause, or cancel membership at any time. This flexibility meets consumers’ changing needs and reduces anxiety about long-term commitment.
Access to exclusive offers : Subscribers often receive exclusive benefits such as discounts, special offers, or early access to new products or services. These benefits reinforce the feeling of value (getting value for your money) and belonging to a privileged community.
Discovery and exploration : Subscriptions, especially those that offer a variety of products or content, encourage discovery and exploration. For example, tasting boxes or streaming platforms allow consumers to discover new products or content that they might not have chosen on their own.
The different types of subscription and examples
The subscription universe is vast and diverse, adapting to the varying needs of consumers and businesses. Here’s a deeper dive into the different subscription types, along with real-world examples:
Subscription to content
This type of subscription allows users to access a library of digital content, often via streaming. For example, Netflix, which needs no introduction, offers a wide range of films and television series, with customization options based on the user's viewing preferences.
Article_Subscription-Customer-Loyalty_Subscription-Content-NetFli
Deezer, on the other hand, offers unlimited access to millions of music tracks and podcasts, with the ability to create personalized playlists and discover new artists.
Article_Subscription-Customer-Loyalty_Subscription-Content-Deezer
Product Subscriptions
These subscriptions provide physical products on a regular basis. Les Petits Culottés, for example, offers a subscription service for eco-friendly diapers and baby care products, delivered directly to your home.
Subscription isn’t just another option in the marketing arsenal; it’s become the battleground on which customer loyalty is won or lost. Ignoring this model means choosing to remain in the shadow of those who embrace it, because acquiring a new customer now costs up to seven times more than retaining an existing one. And in this game of loyalty, subscription isn’t just an asset; it’s the key .
In this article, we will explore in detail why and how subscription has list of australia whatsapp phone numbers become an essential tool for customer loyalty , examining its benefits, as well as the different forms this business model can take.
Article_Subscription-Loyalty-Customer_Hero
Summary
What is a subscription program?
Why integrate subscription into your marketing strategy?
The advantages of the subscription
The different types of subscription and examples
7 Best Practices for Subscriber Management and Retention
What is a subscription program?
A subscription program is a business model where customers commit to paying regularly to access a product or service . This model, which took off in media and digital services, is now diversifying into a multitude of sectors, including those that deal with physical products. The subscription stands out for its ability to establish an ongoing and dynamic relationship between the company and the customer, thus promoting deep and lasting loyalty.
In this context, according to a Papernest/Ipsos study, the French accumulate an average of ten subscriptions per month, illustrating the massive adoption of this economic model. This figure, which is constantly increasing, reflects the growing popularity of subscriptions in areas as varied as entertainment, consumer products, and value-added services.
At the heart of this model is the idea of convenience and personalization . Customers value ease of access and the consistency of services or products provided. For businesses, this translates into recurring revenue and greater financial predictability. Additionally, subscription programs allow for valuable data collection on customer preferences and behaviors , giving businesses the opportunity to optimize their offerings and personalize their communication.
Subscription comes in a variety of forms , tailored to the specific needs of consumers and markets. For example, in the media sector, it can mean unlimited access to digital content, while in retail it can involve regular delivery of everyday consumer products. This flexibility makes the subscription model particularly attractive and adaptable, able to meet a wide range of needs and expectations.
Subscription programs also create a sense of belonging and community among customers. By subscribing, customers are not only making a purchase, they are often joining a group of people with similar interests, which increases their engagement and loyalty to the brand. This community dimension is a major asset for companies looking to build a lasting relationship with their customers.
In short, a subscription program is much more than just a commercial transaction. It is a relationship strategy that benefits both businesses and consumers by offering an enriched, personalized and engaging experience.
Why integrate subscription into your marketing strategy?
Acquisition vs Retention
It can never be said enough, but today acquiring a new customer costs between 5 and 7 times more than retaining an existing one . According to a Profitwell study, acquisition costs have increased by 35 to 60% over the last 5 years . Subscriptions therefore appear to be a way to better manage your marketing expenses since, according to Zuora, an undisputed authority on the subscription economy, 70% of subscription revenues come from existing users . This then underlines an indisputable truth: loyal customers are the pillar on which sustainable growth is based.
Article_Subscription-Customer-Loyalty_Subscription-Acquisition
The end of ownership
Additionally, consumer mindsets and behaviors are changing. We are entering an era that Zuora defines as “ the end of ownership. ” This growing trend reflects a fundamental shift in how consumers perceive ownership and value , privileging access and experience over physical ownership of a product.
Today, thanks to Decathlon Location for example, we can rent our bike instead of buying it. This subscription even includes very useful services such as an anti-theft device, “theft and breakage” insurance and regular maintenance.
Article_Subscription-loyalty-Client_EndofOwnership
Faced with this new paradigm, not integrating subscription into your marketing strategy amounts to refusing to ride the wave of the future, preferring to cling to a raft in the ocean of market indifference.
The advantages of the subscription
Beyond marketing costs, the subscription model offers a host of other benefits for both businesses and consumers, transforming the way products and services are marketed and consumed. Here’s a deeper dive into these benefits:
The benefits for businesses:
Recurring and predictable revenue : Subscription provides a stable and regular revenue stream, essential for financial planning and long-term growth. This predictability allows companies to better manage their budgets and invest more strategically in R&D and marketing.
Deep customer insights : Subscription programs provide valuable data on customer preferences and behaviors, enabling businesses to personalize their offers and target their marketing campaigns more effectively.
Increased customer loyalty : By providing a consistent, quality customer experience, businesses build customer loyalty. Subscribers are more likely to become brand ambassadors, sharing their positive experiences and attracting new customers.
Optimized inventory and resource management : Thanks to better predictability of demand, companies can optimize their inventory management and reduce costs associated with excess or shortage of products.
Developing Long-Term Relationships : Subscriptions create ongoing interaction with customers, fostering the development of deeper, more meaningful relationships.
Benefits for consumers:
Convenience and simplicity : Subscriptions offer a hassle-free shopping experience, where products or services are delivered or accessed regularly without additional effort on the part of the consumer. This convenience is especially appreciated in daily routines, such as the automatic replenishment of everyday consumer products.
Personalization : Many subscription programs offer customizable options, allowing customers to choose the products or services that best fit their needs and preferences. This personalization improves the customer experience and increases satisfaction.
Flexibility : Modern subscriptions often offer the flexibility to smooth out payments, change, pause, or cancel membership at any time. This flexibility meets consumers’ changing needs and reduces anxiety about long-term commitment.
Access to exclusive offers : Subscribers often receive exclusive benefits such as discounts, special offers, or early access to new products or services. These benefits reinforce the feeling of value (getting value for your money) and belonging to a privileged community.
Discovery and exploration : Subscriptions, especially those that offer a variety of products or content, encourage discovery and exploration. For example, tasting boxes or streaming platforms allow consumers to discover new products or content that they might not have chosen on their own.
The different types of subscription and examples
The subscription universe is vast and diverse, adapting to the varying needs of consumers and businesses. Here’s a deeper dive into the different subscription types, along with real-world examples:
Subscription to content
This type of subscription allows users to access a library of digital content, often via streaming. For example, Netflix, which needs no introduction, offers a wide range of films and television series, with customization options based on the user's viewing preferences.
Article_Subscription-Customer-Loyalty_Subscription-Content-NetFli
Deezer, on the other hand, offers unlimited access to millions of music tracks and podcasts, with the ability to create personalized playlists and discover new artists.
Article_Subscription-Customer-Loyalty_Subscription-Content-Deezer
Product Subscriptions
These subscriptions provide physical products on a regular basis. Les Petits Culottés, for example, offers a subscription service for eco-friendly diapers and baby care products, delivered directly to your home.