The playing field for the subscription industry has changed dramatically in recent years. A segment that began primarily with subscriptions to physical newspapers and milk has evolved to offer mobile-based subscriptions for learning from audiobooks, watching movies, renting designer clothes, and expanding subscription plans to use cars instead of owning them.
With the Internet penetrating the conventional lifestyle and excellent support platforms that simplify the collection and management of payments from subscribers, subscription merchants have begun to take advantage of the ease to offer their customers attractive mobile-based subscriptions. Among the benefits enjoyed, the most important are to obtain a constant and recurring income and benefit from the opportunity to cross borders and expand quickly. At the same time, consumers are also gaining. Mobile-based subscription plans unlock convenient access to the best products and services at affordable prices with auto-replenishment facilities, literally right inside your pockets!
Specifically, looking at the past few years in the subscription space, there is a significant increase in the relevance of mobile-based subscriptions in both the B2B and B2C markets. According to research projections, mobile apps are expected to generate more than $935 billion in revenue by 2023. Mainly, app revenue comes from 3 sources: ads, paid downloads, and mobile-based subscription plans. This presents an attractive number for vendors of subscription industry growth and products to re-examine their offerings.
The mobile-led inflection point in the subscription industry
The Internet and the mobile phone have brought about a remarkable change in the subscription space. While the Internet has simplified connectivity, the smartphone has ensured that convenience is accessible in the palm of the consumer’s hand.
Interestingly, today there are more than 6.3 billion mobile users and 1.4 billion tablet users worldwide. According to studies, a person looks at their phone more than 262 times a day! In other words, almost once every 5.5 minutes!
This behavioral data presents an attractive opportunity for growth and product marketers in Internet-driven businesses to explore the prospects of introducing mobile-based subscriptions and tapping into customers exactly where they choose to be.
Pandemic-led acceleration in mobile-based subscriptions
The COVID-19 pandemic had forced people to isolate themselves and spend their days in the confines of their homes. As a result, they were forced to turn to e-commerce for everything from accessing essential to discretionary products and services. Even with post-vaccination relaxations of distancing, this habit of wanting everything online has now solidified as part of the new consumer lifestyle.
Statistically speaking, there has been a meteoric rise in mobile app usage and downloads have skyrocketed over the period.
Today, apps meet nearly every consumer need, from entertainment, education, and fitness to work productivity.
Subscription industry merchants who can take advantage of this wealth of mobile-based subscription possibilities may emerge as key players in their segment.
Key Benefits of Offering Mobile-Based Subscriptions for Merchants
For businesses that have been on the fence about whether or not to launch a mobile-based subscription model, the time is still right as the benefits are here to stay.
– Mobile-based subscriptions offer the following advantages for merchants:
– Last chance to serve customers promptly, where they want to be served
– Opportunity to secure recurring and stable income that can be managed efficiently
– Ability to maintain an advantage over the competition.
– Access data-driven analytics and learn what exactly makes a customer come back.
– Geographic expansion option
Subscription merchants who identify the needs of changing markets and jump on the bandwagon are likely to emerge as those who will survive and prosper.
A word of caution…
While the benefits of offering mobile-based subscriptions are an exciting and compelling proposition for marketers to explore, the field is not foolproof for those who don’t deliver end-to-end excellence.
For mobile-based subscription providers, it is essential that your offer, price, position and incentives are well aligned and that there is regular engaging interaction with customers.
In this world of intense competition, staying relevant and delivering a stellar customer experience is critical to ensuring customer retention. After all, dissatisfaction is a sure path to customer churn, and it’s possible with just a few clicks on mobile!
DISCLAIMER: The views expressed are solely those of the author and ETBrandEquity.com does not necessarily endorse them. ETBrandEquity.com shall not be liable for any damage caused to any person/organization directly or indirectly.