Which Industries Take Advantage of the Subscription Business Model?

    Before we try to understand and find out about the industries that use the subscription business model, let us find out what benefits this model offers to entrepreneurs. So, read on to know to get a better insight. 

    Benefits of the subscription box business model

    One of the main advantages of this model is that it offers a balance of value that is beneficial for both the consumer and the company. Consumers enjoy the convenience, while for companies, it is a pro because the companies using this model are in a better position to understand what the revenues will be. In other words, the revenue is predictable, which allows companies to plan out or chalk out their marketing, budget, and brand strategy. Let us find out the other benefits in brief-

    • Scalability is easy

    For the customer, he can scale up or down the subscription as per requirements. The company will be able to assess the volume of the product or service that has to be addressed. For instance, if in one week the company supplies, let us say, 500 tins of canned food and the requirement subsides next week, the company will be able to scale it down. 

    • Predictable

    As mentioned above, the business benefits since the volume can be predicted. 

    • Better customer relationships

    If the consumer gets what he wants and the business understands that its investment is not getting wasted, so, there will be a better understanding between both parties. 

    Subscription-based business model examples – Industries that are doing well on this model

    Let us find out those sectors that thrive on a subscription-based business model. 

    • Online learning

    One example of a company offering a subscription-based business model is Educator. Such online teaching platforms connect students and different categories of high schools and colleges where qualified teachers impart education, and Udemy for business and Treehouse are other virtual learning platforms. 

    • Streaming music

    The streaming music industry is perhaps the first to adopt this business model, and this has happened due to the escalating number of devices powered by internet connectivity. With this kind of subscription business model, you do not have to buy music or a certain number of songs; instead, you can hear music from different channels and sources whenever you feel like it. 

    • Beauty and health products

    Birchbox is one such company that operates on the subscription business model. Set up in 2010, the company has shipped samples of their customers’ favorites right at their doorstep just for a few dollars. It is also fascinating for customers to receive sample boxes in the mail. 

    • Food and beverage industry

    The F&B industry is an ideal example of a subscription business model. This business model empowers the customers by offering the convenience of food being delivered at their doorsteps. 

    The Subscription-based business model examples are just a few above. More industries are expected to follow suit. The future of this business model is promising, and if there are changes in the model, it will be for the better and with enhancements. 


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