subscription businesses

Crucial Steps to Building a Subscription-Based Business

 

Robbie Kellman Baxter makes the case for subscription-based businesses and provides a few expert tips on how to take your business in that direction. 

If you’ve been tasked with launching a subscription-based business at your organization, or are thinking about starting your own XXX-as-a-service or XXX-of-the-month-club, before diving in, take a step back.

To ensure a solid foundation, I encourage companies to devote a few weeks (usually at least 2 and no more than 12 weeks) to fleshing out the business case before proceeding. After all, the objective of testing is to assess the viability of the model, make necessary adjustments, and get the green light to move forward at a broader level. Without understanding the business case, how will you, and your organization, know whether you’re on the right track.

 

Details covered in this article include:

  • The business rationale
  • The forever promise
  • Executing the vision
  • The risks of the strategy
  • The early steps, research, and tests needed
  • Criteria for board support

 

Read the full article, Making the Case for a Subscription-Based Business, on LinkedIn.

How to Build Better Relationships

The subscription business is based on long-term relationships with customers. Robbie Kellman Baxter shares ideas on how to build strong relationships that work for both your personal life and in business.

 

Over the holidays, I started thinking about what my work on The Forever Transaction and The Membership Economy has taught me about building long-term personal relationships, which ultimately are way more important than any subscription.

As dig in on our 2020 to do lists, and focus on our goals and hopes for the year ahead, I wanted to share some ideas on how we can take these principles and apply them in our personal relationships. It’s a little hokey, and a little jargon-y business-school-ish but I decided to try using my 7-step framework as a guide.

 

Points covered in this article include:

 

1: Different tiers of subscriptions

2: Identifying key metrics

3: Onboarding process

4: Using technology

 

Read the full article, Seven Steps to Better Personal Relationships, on LinkedIn.

Where the Subscription Business is Going in 2020

Subscription businesses were a big deal in 2019, so what’s the forecast for 2020? Robbie Kellman Baxter shares her expertise on what lies ahead. 

I’m no fortune teller, but something about the beginning of a new year and a new decade makes me want to start spouting predictions. Actually, this isn’t the first time I have taken a crack at predictions. The final chapter of my new book THE FOREVER TRANSACTION is all about the future of subscription and membership models too.

Here’s what I think will happen.

 

In this post, topics covered include:

  • There will be a right-sizing of the “Subscription Box” industry.
  • Subscription “Managers” Will be Everywhere.
  • Subscription CMOs will swing back toward strategy and away from “growth hacking”.
  • Consumers will start subscribing to the thing itself, not just services and boxes.
  • Big Companies will try to buy their way into the Membership Economy through Acquisition.
  • Healthcare will become increasingly consumer-centric, which will lead to more forever transactions.

Read the full article, Crystal Ball: The World of Subscriptions in 2020, on LinkedIn.

Stop the Churn: How AI Can Improve ROI

Karthik Rajagopalan’s company blog explains how machine learning models can facilitate a deeper understanding of the drivers of churn, leading to better solutions that can help customer retention for subscription businesses.

Subscriptions have been around for a very long time. Having come a long way from the hire-for-purchase model introduced by the Singer sewing machine company, the past few decades saw the emergence of memberships in retail, health clubs, and monthly subscriptions to services like telephone and cable television. More recently, the recurring revenue model has been pushed forward by e-commerce and software-as-a-service (SaaS) businesses with the introduction of services for streaming media, connected home, connected car, gaming, etc. According to the Subscription economy index (SEI), the subscription economy has grown by nearly 300% over the last 7 years and is also increasingly correlated with traditional economy, a significant yet not so surprising development.

 

Topics covered in this article include:

-Churn model

-Churn rate

-Customer longterm value

-Promotion campaigns

 

Read the full article, AI augmented retention program is a must for subscription businesses, on the Paramis Digital website.