Skip to main content

Why Transform Customers Into Recurring Subscribers?

By April 7, 2020June 27th, 2022No Comments

transform customers into recurring subscribers

The growing popularity of the subscription model

It is 2020 and we are living in an expanding subscription service economy. Companies across all industries are increasingly turning to subscriptions for future growth and success.

Globally, consumer preferences are shifting. Almost 75% of people over 12 countries subscribe to services and believe that they will keep subscribing more and will own less in the foreseeable future.

This new consumer insight transforms vast sectors of the global economy with subscription service models. Food, fashion, gaming, transportation, and technology, gets consumed when and where they are needed, similar to commodities like water, gas, or electricity. 

With a compound annual growth rate of 17.3% in the last 5 years, according to SUBTA’s 2019 annual report, the global subscription commerce economy is not slowing down. Clearly, the subscription industry is booming.

What is in it for companies and vendors?

The subscription model works great for companies and vendors that recognise customers are their most important asset. When they get it right, they usually thrive in the recurring revenue economy.

Benefits for companies and vendors

  • Their product or service truly becomes part of customers’ lives. Customers then become advocates and drive new revenue.
  • Margins and lifetime value of a service or product can be greater through purchase.
  • Revenue, stock, costs and more become very predictable.
  • Lower retention spend since customers automatically buy each time period.
  • Fulfillment as an extra channel to communicate, cross-sell and build a deeper relationship deeper with customers.
  • Faster innovation through faster feedback. Customers that buy every month will tell you of issues right away. This allows you to act, build a better product and attract and retain customers better.
  • Company value where near-guaranteed income each period looks attractive to investors.

What is in it for customers and subscribers?

In an increasingly competitive space, it is important to create a deep relationship with the customer base. Through data analysis and feedback, brands will learn what consumers desire and adapt to their wants and needs. The only way to outperform the competition is to be entirely customer focussed. Good news for subscribers!

Benefits for customers

  • Convenience without commitment. Consumers want access to services and products anytime, anywhere, and whenever without being fully committed to a brand (despite having built an initial relationship with one)
  • The client is in control. Customer focus is absolutely key in this long-term relationship, which makes the customer king. Continually delight and surprise nomadic consumers to keep the relationship fresh and exciting. And when the value decreases, the willingness to pay goes with it.
  • Lower entry costs and budget control. It becomes easier for customers to assess the value of a service or product and decide if it is a good fit.
  • Discovery of new stuff and services.


Subscription-based pricing is becoming increasingly popular. Turning customers into subscribers has many benefits from both a business as well as a consumer perspective. If you want to attract more customers, have predictable revenue, an increase in return on customer acquisition costs, earn more through up and cross-selling, and innovate faster, the subscription model might just be for you.

We can help to turn your customers into subscribers

We offer seamless, integrated subscription management tools in the cloud. Don’t hesitate to reach out via to find out more about how Ubersmith can help you make a success of your subscription model. 

Leave a Reply