Why the Subscription Based Model is Now So Dominant

Over the years, there have been numerous business models that have come and gone. Among these, the subscription based model is one that continuously proves to be effective and successful, and this year is no different. With so many things having changed over the last few months owing to the pandemic, the subscription model and its success continues to rise at a steady pace and is becoming more dominant with each passing year. In this article, we’ll take a look at the reasons for the dominance of this model and if it’s a good time to adopt the same for your business, let’s get started.

1. Stability and Recurring Payments

Businesses that have the subscription model can predict the amount that they’re going to be able to earn each year, giving them a sense of security and stability which other models don’t have room for. The only hard part will be in generating a decent amount of subscribers during the initial phase of the business, but once this is done, business owners will have the ability to track and predict the amount of revenue coming in, making them surer of their revenue which will give them a certain amount of freedom for strategically planning future investments.

2. Customer Loyalty

Research has found that a high number of customers are more likely to stick to a particular product or service once they’ve subscribed to it, while they often may not come back to the same product in the future if they aren’t subscribed or committed to the product in any other way. By giving customers benefits and having them subscribe to a product right from the start, businesses have a much higher chance of winning their loyalty right from the start and not losing them anytime in the near future. The initial hassle lies only in winning them over in the start by convincing them that the product is what will be the solution to their problem.

3. Convenient and Easy

One place where subscription models truly stand apart from other business models is in terms of customer convenience and ease. Most people go for this model because it makes their life easier as a whole, by reducing their need to shop for a product or service every few months. Instead, they can set payments and delivery on auto-pilot and have it delivered at the said time each month or year. This is one reason many people prefer going for a model that simplifies their life. For example, if a person wanted to send flowers to his or her mother on Mother’s Day each year, they can order flowers online with Bouqs without ever forgetting, since they’ve already subscribed on a yearly basis. 

4. More Benefits For Customers

Another reason for its popularity among customers is because of the benefits they get from subscribing to different plans, be it a weekly, monthly, or yearly service. This is because most businesses use additional benefits to attract their customers to subscribe to their service initially, making it a win-win situation. For example, many businesses give their subscribers heavy discounts to make sure they have benefits from subscribing to the service rather than buying the same product or service elsewhere. This is one of the driving reasons that the business model keeps getting bigger and better.

5. Customization for Customers

Over the last few years, a trend that’s seen among customer habits is their love for customizing and personalizing their products and services. With the subscription model, they get more freedom to be able to customize their products than with other models. For example, they’ll be able to choose the right level of service which meets their needs, and also appeal to personalise their preferences even more with select businesses. Giving them the freedom to decide on what they want and how they want it gives the customer a feeling of satisfaction and achievement which is vital in appealing to them in the long run.


To summarise, subscription based models are becoming more popular each year because they give an equal share of benefits to both the business and its customers. While the business is able to get stability, a sense of security, and customer retention and loyalty, customers are able to get convenience, ease of use, discounts, and the ability to customize their preferences to suit their needs.



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