Subscription

In The Personal MBA a subscription is defined to provide tangible or intangible benefits on an ongoing basis in exchange for a recurring fee. It is one of the Twelve standard Forms of Value (Form of Value #4 of 12). For a company a subscription is an attractive form of value as it provides a steady stream of revenue. Subscriptions allow a company to build a steady state of loyal customers. The key to subscription is to make Customer attrition as low as possible and keeping existing customers happy.

Key Points:

• Subscription programs provide tangible or intangible benefits on an ongoing basis in exchange for a recurring fee.
• To create a successful subscription you must:
  • Provide value consistently to each subscriber.
  • Build a subscriber base and constantly attract more subscribers to compensate for attrition.
  • Bill customers on a regular basis.
  • Retain subscribers as long as possible.
• The attractiveness of subscription models is its predictability. This form of value ensures a certain revenue in every billing period.
• The key is to keep customer attrition as low as possible by keeping your subscribers happy and constantly attracting new customers.

Questions for Consideration:

• Does delivering value as a subscription / continuity program make sense for your business idea?
• If so, what do you need to plan for to make it successful?

Source: http://book.personalmba.com/subscription/