The saying goes that there are only 2 certainties in life; Death and Taxes. But there is one fundamental certainty that has remained true since the dawn of time itself. Change.
Whether you like it or not, change is inevitable. Businesses resisting change will fail, and over the centuries, the most successful businesses in the world adapt to the changing needs of both the times and their customers’ needs. Whether it’s products, services, or how customers pay or access them, change will continue, so to remain competitive your business must change too.
Consumer are changing
In terms of change in human behaviour, over the past few years there’s been a monumental shift in the way that consumers are purchasing products and services. Gone are the days of paying exuberant amounts of money upfront. Customers demand access now and want payment options that suit their lifestyle, or they’ll simply go looking somewhere else.
The following list of companies have successfully adopted a customer subscription-based business model to suit their customers’ needs and are killing it in the process.
1. Software as a service (SAAS)
Software that is licensed under a subscription service (SaaS) is undoubtedly one of the biggest subscription models in the world. Think companies like Microsoft or Adobe and the suite of products that fall under them. Previously, you’d have to pay hundreds of dollars to download Microsoft Office or Photoshop online. Nowadays, they’ve made their products more obtainable to the masses by offering instant cloud-based access via affordable monthly subscription plans.
2. Streaming – Netflix & Spotify
From buying or renting individual movies to owning the video store from your living room, Netflix was the first streaming service of its kind and a true game changer in the subscription service model.
Long gone are the days of buying DVDs or paying to stream one-off movies. Netflix, Stan, Amazon and Disney to name a few have moved 1000’s of movies, documentaries, and TV series to their online platforms, where you can pay a monthly subscription fee to access all of them from any device you choose. If traditional brick and mortar type stores like Blockbuster had seen the change coming, perhaps they could have adopted their business model.
The same model applies to Spotify. When was the last time you purchased a CD? With a subscription model similar to Netflix, Spotify currently lists over 50 million songs and a reported 40,000 songs are added every day. Furthermore, you can access it on any device in the world.
3. Subscription Box Services
You name it, regardless of the industry, there’s a good chance you can order a subscription box and have it delivered to your doorstep in no time. More and more brands are offering subscription box services, either as their business model or as an option at the point of purchase.
From beauty and grooming products like BirchBox and Dollar Shave Club, ready to cook meals like Hello Fresh, to toilet paper like Who Gives a Crap, you can pick and choose the type of subscription box to suit your needs, when you want your products delivered, and pay for it in instalments via a subscription model.
Previously, the idea of obtaining a product before paying for it would seem crazy, but it’s yet another example of how consumers are opting for subscription-based payment methods for physical products. You name the product, there’s a shop that’s offering instant delivery while you pay the cost of your product off via affordable instalments.
Companies that are slow to take advantage of the online platforms that cater to these payment solutions often fall behind their competitors, leading to reduced revenue and eventually, closure.
Conclusion – What’s at the heart of these companies?
At the heart of all these companies is a subscription-based payment model that is tailored to suit their customers. Regardless of your business and its product or service, you too can create a subscription-based model for your customers, and in the process tap into a much larger audience, increase your revenue, and stay relevant in today’s competitive environment.
Transacty’s cloud-based platform allows businesses to create simple, flexible subscription plans, delivering personalised payment experiences your customers expect. Furthermore, Transacty not only facilitates the individual or recurring direct debit from your customers subscription plan but provides administration services to follow up any missed payments and provides real-time reconciliation reports.
If you’d like to learn more about how Transacty’s payment platform can help your business grow, contact us today.