The Subscription Economy: Why It is Smart for Businesses to Subscribe
The subscription economy is here to stay. Image Courtesy: knowledge-leader.colliers.com
“Subscribe to our service! Cancel at any time.” These words, adorning almost every large commercial website today, represent an economy that is defined by the subscription model of business.
The big shift has happened: subscription is the new norm.
Businesses of all kinds (industry survey, what businesses) are preferring to subscribe to services for their requirements, ranging from operations to maintenance to delivery. These come with a variety of benefits, ranging from cost-cutting to a flexible schedule that the subscriber has control over. Today, companies subscribe to caterers, cloud computing software, delivery services like Swiggy Genie and Yulu, transport services like Ola and Uber, and furniture rentals. Renting luxury cars from Audis to Volkswagens is becoming increasingly popular among both corporates and individuals.
“Today successful companies start with the customer. The more information you can learn about the customer, the better you can serve their needs, and the more valuable the relationship becomes. That’s digital transformation: from linear transactional channels to a circular, dynamic relationship with your subscriber.”
Tien Tzuo, CEO, Zuora, and author of Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It
The subscription economy is emerging as the new norm for both individuals and businesses. Be it entertainment service providers like Netflix, food subscription services that pre-package your ingredients for meals, furniture rentals, vehicle subscriptions, DTH, or cloud services, the subscription model of business has unarguably taken the market by storm.
How Does the Subscription Model Work?
The subscription economy is a business model where users pay for each subscription, either online or in-person. Typically, the user would have to pay a subscription fee for a lock-in period, following which they can extend the subscription depending on their level of satisfaction with the product/service.
Businesses are upgrading to subscription models to ensure they don’t lose out on the benefits of an ongoing customer experience.
The subscribers may be paying for a wide range of products and services, ranging from software to food to educational tools to clothes to entertainment services. Subscription services are becoming increasingly popular and some of the most popular service providers are Amazon, Netflix, Pandora and LinkedIn. One of the most attractive options today is the subscription box, a hamper of customised products that is sent to the customer on a recurring basis. Many industries are creating their own subscription services, including hardware. Some popular examples include automobiles, laptops and desktops, technical equipment, lighting and furniture. Hardware subscriptions are making expensive equipment affordable for small businesses and individuals alike.
How are Subscribers Benefitted?
Subscription boxes are a great way to engage with a client community on a regular basis. Image Courtesy: pcmag.com
For any customer, the greatest benefit from subscription is the flexibility it brings. It also comes with an array of other benefits:
- Choice and Customisation - Customers nowadays constantly want businesses to cater to their particular needs. Subscription services are known to offer customised options that provide customers with the satisfaction of having their individual needs met.
- Pocket-friendly - Since subscription services are mostly monthly, it's a good way to ensure that monthly expenses are under control. A customer would not have to worry about overspending.
- Control - Subscription offers the flexibility to cancel anytime. This gives the customer the power of deciding whether a certain service/product is good enough to be used, rather than having to put up with something they don't like.
- Hassle-free - Most subscription options are very user-friendly. They let users cancel subscriptions at any point of time at the click of a button.
Why Businesses Should Subscribe Instead of Buying
Subscription offers customers a range of customised, ready-to-use options. Image Courtesy: rapidlei.com
Consumer subscriptions are just one side of the coin. Subscriptions for B2B products and services are growing at a very fast pace. The market for such subscription products is set to grow by 24% by 2024, reaching $344.3 billion, according to a report by IMARC.
The subscription journey of a B2B client is analysed diligently and strategically by the service providers so that the service provided is constantly updated and optimised to suit the client’s needs. This saves time and money for the client and provides a tailor-made, hassle-free option that is convenient to use and trustworthy. B2B subscription commerce is the future of the digital economy. Cisco’s CEO Chuck Robbins found that the company’s shift to subscription surpassed general expectations with its success. According to Rajiv Ramaswami, CEO, Nutanix, the shift to a subscription model is an evolution to address the customers’ rapidly changing needs.
What are Businesses Subscribing to?
Today, businesses are subscribing to hardware and software products and services. Software subscriptions include task managers, organisers, word processors, and technical service providers. Hardware such as lighting, cars, solar power, cleaning equipment, telecom, furniture, technical equipment for research, etc. is subscribed to by clients as part of their business requirements.
Hardware as A Service: Personalising Experience
Subscription models offer a financial win-win for the service provider and the client. Image Courtesy: bestservices.reviews
Increasingly common today is ‘Hardware as A Service’ or software-enabled hardware. This option covers basic hardware that forms the core of the subscription, along with service-providing software such as an app/dashboard to monitor data, raise tickets, alter orders, etc.
Some of the advantages of a subscription model for business clients include:
- Cost Saving - Subscription models provide business clients with a tailored service that they find suitable for them and therefore, economically beneficial. The flexibility of choice and the recurring payment system make it easier to control expenditure. In the long term, it also makes it easier for the business to plan budgets.
- Smart Choices - Subscription models are beneficial to business clients since they can greatly reduce capital expenditure and weigh benefits over a period of time before committing to a product or a service.
- Always Updated - A subscription model is unrigid and offers the scope of upgrading benefits, technology, design, and rewards at any point in time since it doesn't involve the problem of a one-time payment.
- Innovation & Quality - Reduced costs and the ready availability of products/services that are conveniently tailored to scale gives businesses the space to innovate. It ensures qualitative investments that contribute to the business’s health. Further, the low costs of subscribing allow for expenditure on efforts that enrich and grow a business.
“Why subscribe? It's easy. Easy on your pocket. Easy to start and stop. Our clean air subscription model is the easiest route to health and revenue benefits from breathing clean air."
Dr Srikanth Sola, CEO, Devic Earth
Devic Earth, a niche green technology company, is emerging as a leader in the air pollution control business with its unique solution and standalone technology for air cleaning, Pure Skies. Companies are increasingly subscribing to our subscription service for its ease of access, flexibility, and affordability. With outstanding features, this AI-enabled system is a package of air cleaning hardware, air quality monitors, and an app to view its efficacy.
Clean Air Subscription: Subscribe to Good Health, Better Productivity & Higher Profits
Devic Earth’s air cleaner for large areas, Pure Skies, is the world’s first subscription solution for clean air. It is a software-enabled hardware and among the best solutions today for large-scale air cleaning. Our unique technology is based on pulsed WiFi and requires just a power source. It uses no filters, and therefore, eliminates the need for maintenance.
Why Pure Skies?
- Large area coverage - Pure Skies can cover premises of up to kilometres in radius, and is an ideal solution for large spaces such as industries, cities, residential areas, event venues, and other hyperlocal areas.
- Low cost - Pure Skies’ breakthrough technology allows for large coverage at the lowest cost per unit area covered, compared to almost all other devices in the market.
- High Efficacy - Pure Skies effects an improvement in air quality by 33-90%. With consistent use, the clearance of air pollutants including particulate matter (PM2.5 & PM10), oxides of carbon, nitrogen, and sulphur, is accelerated at an exponential rate.
As part of the Clean Air subscription programme, Devic Earth provides a customised plan for each client. The Pure Skies system, complete with air cleaning devices and air quality monitors, ensures clean air across the designated area with no further cost implications for the end users. The subscription covers consultation, installation of devices across the premises, maintenance and repairs, reports, hardware and software updates are covered by the subscription.
How is Pure Skies A Sustainable Choice for Me?
Apart from having clean air around your premises, subscribing to Pure Skies ensures:
- You participate in a circular economy, where there is no wastage and products get recycled after use.
- Access to upgraded technology for hardware and software without having to buy a new product.
- Excellent efficacy. Don’t believe us? Try it yourself. Unsubscribe anytime after the initial period.
Customers may subscribe to Pure Skies for at least three months, after paying a nominal upfront cost. The subscription is available for both indoor and outdoor spaces. Customers can cancel anytime after the initial period of 3 months.
Pure Skies’ subscription is the ideal solution for cities, industrial areas, educational campuses, event venues, and others to ensure clean and pure air for all.