4 Types of Businesses That Are Switching to Subscription-Based Models

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You might have noticed that more businesses are now making subscriptions an essential part of their business model. Magazines might have dominated the subscription market in the past, but it is now full of everything from software to clothing. You may think that your business shouldn’t offer subscriptions, but the expanding use of recurring payments proves that almost any business can utilize subscriptions. With a subscription management platform, you can make the switch easier than ever. Here are four markets taking advantage of subscription-based solutions and how they can inspire you to try it too.

Subscription Management

At-Home Fitness Equipment with Software Subscriptions

Gym memberships came first, but subscriptions for at-home workout plans have revolutionized the fitness industry. Companies offer fitness equipment like dumbbells and stationary bikes alongside subscriptions to personalized training routines to help subscribers use them regularly. Selling hardware alongside your software subscription is an excellent way to boost sales and prevent “churn.” A churn calculation describes the rate at which customers are ending their subscriptions. Customers are more likely to continue their subscription when their software subscription helps them use their fitness equipment more often.

 Health and Wellness Brands Offer Easy Refills

If you sell products that people use daily, look no further than health and wellness brands that offer subscriptions for examples of how to implement a similar strategy. Razors, hair care, vitamins, and skincare products all need to be restocked regularly. This makes subscriptions incredibly easy for these companies to implement. Many companies even offer a discount if customers decide to subscribe instead of simply making a one-time purchase. Customers buy these products regularly anyways. Why not sign up for the subscription? If your business specializes in daily essentials, you can easily implement this subscription style.

 Software for Business Solutions

Software as a service (SaaS) is one of the biggest markets for subscriptions. In a world where technology solutions are constantly evolving, it makes sense for developers to continue to adopt a subscription model for the support they offer with their services and products. Businesses use their software every day, so a subscription-based process is a natural solution. If you are selling software, subscriptions can be a great option for establishing a steady stream of income. With this income, you can offer continued support and updates to your product as they are developed.

 Apparel for Fresh Wardrobe Selections Each Month

Clothing companies are evolving with the market by offering subscription boxes that feature some of their best products delivered to customers every month. Some companies deliver complete outfits, and others stick to what they do best, offering packages of socks or underwear. Either way, they fulfill the promise of making you excited to open a new box of fresh clothing and accessories. Just because your product doesn’t necessarily run out every month or require ongoing support doesn’t mean you can’t enter the subscription world. Offering unique products that customers are sure to enjoy can keep them looking forward to a new box every month.

 About Recurly

 Recurly is the ultimate solution for subscription-based businesses. From streaming services and news outlets to software and consumer goods, the most innovative companies are introducing subscription models to build recurring revenue streams. With over 40 million subscriptions under their management, Recurly has been a driving force in the recurring payment world for over a decade. Their enterprise-class account management system and billing platform allow companies to adapt quickly, scale globally and increase customer lifetime value. Recurly understands that startups and established companies alike can face difficulties. So, they don’t just work behind the scenes—they stay involved to help you increase subscriptions and grow your brand. Whether you want to optimize your churn rate formula or introduce a new payment gateway, Recurly is the top choice to help your business be the best it can be.

 Find out how Recurly can help you move into the subscription landscape at https://recurly.com/

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