Why You Should Consider the Subscription Model in Your Business

According to Zuora, the subscription economy has grown approximately 6 times (about 435%) in the last 9 years.

Is your business reaping the fruits just yet? Well, if not, then it’s high time you incorporated recurring billing into your business. It turns out customers love this approach, and business owners who’ve implemented it stand to benefit.

Here are some figures that you might find interesting:

  • According to Zuora, the subscription economy has grown approximately 6 times (about 435%) in the last 9 years.
  • Subscription billing is now used by 78 percent of adults worldwide, up from 71 percent in 2018. People will subscribe to more services and possess fewer physical stuff in the future, according to 75% of respondents.
  • In 2020, revenue for subscription publishing companies in the SEI increased by 16 percent.
  • According to UBS analysts, the subscription economy will grow to $1.5 trillion in 2025 to surpass $650 billion in 2020. That’s an annual growth rate of 18%.

If you’re not already part of the subscription economy, you could be missing out on one of the digital economy’s fastest-flourishing sectors.  Pay attention to the information presented above. Those are significant figures that say a lot.

What is Recurring Billing?

Subscription pricing is a method that allows a retailer to automatically bill their clients. In the digital economy, the subscription model is one of the most continuously profitable business strategies.

“Since subscription businesses focus on building strong long-term customer value, they automatically reap the benefits of that approach: less volatile revenue and better cash flow,” according to one thought leader.

Why Customers Love to Subscribe

Recurring transactions are popular with customers, particularly millennials, because they make things more affordable and accessible. The consumer enjoys the convenience of being able to “set up and forget” monthly transactions.

According to a McKinsey & Company poll, 46% of users have already paid for a web streaming service, and 15% have had an e-commerce service subscription during the past year. In addition, 44% of consumers believe that subscriptions offer greater value for money than alternative forms of payment for the same product.

Author Bio:- Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of worldpay number. He also writes non-fiction on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.