Subscription Economy: How Retailers are using the Subscription Model for their business growth?

Subscriptions are not a new concept. In fact, they’ve been around quite a while. We have grown up seeing newspaper and magazine subscriptions, gym memberships, and advance payments for cable TV. These were all a part of the subscription business model that has very much been there since the middle ages.

However, in the past two decades, there has been a rise in the use of subscription-based models by businesses across the globe and even big retailers have been testing out subscription services. Technological advances have shaped a fertile environment for new business models and given rise to the “subscription economy”.

Why the subscription economy gained such momentum?
The subscription model has simplified business processes for retailers. It has freed them from the hassle of tracking repeated purchases thereby adding to their productivity.
It ensured that the businesses were retaining a larger number of customers on a regular basis. This helped increase their revenue.
The kind of convenience that this model offered customers, businesses were able to build a strong relationship with their customers and broaden their fan base.

Тэги:

#Subscription_Economy #Retail #E-Commerce #E-Commerce_Subscirption_Model #Retail_Trends #Retail_Innovations #Sales_Model

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