Subscriptions are increasingly becoming a part of our new consumer habits. Greater simplicity, less commitment, greater mobility. The use economy is well underway! The proof? BIC countries have more subscribers than the USA or the UK (80% vs 50%)! Subscriptions are a win-win model for your company: they allow you to easily respond to your clients’ changing demands whilst smoothing out your revenues and maximizing loyalty. Business opportunities at the heart of the subscription economy are massive: discover the major trends in subscriptions for 2017.
The subscription economy in just a few words
We talk of the subscription economy to explain how new business opportunities emerge as our consumer habits change: we own the products. However, we want to benefit from the use of these products. Consequently, there is an entire economy of service by subscription which is emerging. The subscription economy is changing the way in which companies do business: rethinking the relationship with your consumers and offering them new experiences.
Subscriptions are becoming more flexible: developing offers that are more and more personalised
Personalization has been at the heart of new consumer methods for several years. This trend is not recent, but as consumer subscriptions are becoming more and more widespread, it is normal that personalization will adapt more to subscriptions. Take the example of Gretel which offers entirely personalized healthy snacks.
Subscriptions go mobile: subscribe and unsubscribe in a single click
Consumer methods and the way in which consumers buy have changed. The explosion of new technologies and the Millenials have prompted a massive rise in e-commerce and online purchases are now predominantly done via a mobile. This is what we call m-commerce. Growth forecasts for m-commerce in 2017 are 31% compared to just 17% for e-commerce! Mobile is now the point of entry with your clients. You need to develop a mobile-based user experience and a subscription offer that fits in with this mobility. Another point to note is that clients no longer want to commit. So freedom needs to be the watchword for your marketing strategies. It’s up to you to find the best business model.
Subscriptions are becoming the norm: the business model for subscriptions extends to all sectors
Following on from beauty with Birchbox, video with Netflix, food with Try The World or even music with Spotify… now it’s the turn of the press, and particularly points of sale to transition into the subscription era. The number of active subscriptions is currently 5.4 per person in France according to a study conducted by Slimpay. We are ready to bet that this number will increase consistently over the next few years.