The way we buy is changing.
Currently, there is an ongoing shift away from making individual, one-off purchases for goods and services, in favour of a subscription (or reoccurring income) model. This model has expanded from its roots in magazines, music, and streaming to now being commonplace in industries such as software, automotive, fashion, and many more.
For example, with our motor vehicles, many of us now enjoy the ease and reassurance of a ‘just add fuel’ model, where we pay a fixed monthly fee that covers everything except our fuel.
This allows us to drive a more expensive vehicle than we would otherwise be able to, while the vendor has the opportunity to offer us more frequent upgrades, as well as to virtually guarantee our loyalty for vehicle servicing, parts, insurance, and repurchases.
There are several reasons to consider using a recurring payment or subscription-based model for your business. Here are just a few of them:
Here are some of the most common types of recurring revenue models:
Almost any business can utilise a subscription-based model, and we have helped companies as diverse as theme parks, heating engineers, hairdressers, beauticians, nightclubs, and restaurants to successfully introduce them.
Want us to do the same for you? Get in touch! We’re happy to help.
Tim Peniston-Bird, MD of Orangutan, has worked with large and small businesses to help them develop subscription models and loyalty programmes.
He specialises in boosting business profits through greater client retention, generating referrals, optimising sales channels, and improving the customer acquisition process.
Tim has worked with brands like AIG, BMW, Centrica, Compaq, Ford, Goldfish, Gucci, Honda, Hugo Boss, Microsoft, Orange, and P&G.
Website: www.orangutan.co.uk
Email: tim@orangutan.co.uk
Mobile: 07710 763566
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