In recent years subscription-based services have seen an increasing rise in popularity among businesses across all platforms, everything from Netflix, Amazon, and Dollar Shave Club to Academic Journals and, more recently, nutritional supplementation.
These subscription-based service types are continuing to appear across a wide range of sectors as they offer a variety of benefits for the business and customer alike.
What Is A Subscription-Based Service?
Basically, a subscription service is a business model that allows customers to pay a recurring fee or price at periodic intervals throughout the year to access the product.
Interestingly enough, one of the first subscription-based services can be dated back to the 17th century. Here, publishers of books and journals used the same business model to attract customers.
So instead of selling products individually, the business model offers recurrent access to products ranging from books to meal replacements, smoothies, and nutritional supplementation. Access to products or services is typically charged monthly, half-yearly, or annually.
Generally, subscription-based services require you to link to either a credit card or a checking account, and the cost of the upcoming product or service is pre-charged.
There are currently several different types of subscription-based services, and they vary greatly depending on the product, time frame, price, and company you are dealing with.
Some examples are:
- A subscription for a planned set of products or services.
- Newspapers or journals typically use paid circulation and controlled circulation.
- Subscription boxes
- Pay as you go; this business model is also recognized as the “convenience model” as it allows the customer the freedom of not worrying about placing their next order.
- Basic access subscription; An example of this is some nutritional websites and journals offer basic access to limited information; However, if you’d like to sign up for weekly informative blogs or access supplements, the company may need a subscription for services or products.
At SuperGreen Tonik our blog is not only comprehensive and informative, but FREE.
Pros And Cons
Let’s take a look at some of the pros and cons to consider before committing to a subscription-based service model.
In many cases, the advantage is two-fold for both business and customers, meaning there are benefits for both parties by utilizing the subscription-based service.
- The customer benefits significantly from having their products or services routinely delivered to their house, company, or even their email without having to worry about performing the transaction every time they wish to place an order.
- Businesses may also benefit through product surveys or checklists that customers may need to complete in order to finalize their purchase. But at the end of the day, it’s an excellent service for customers to use, and both parties experience a convenient, easy-to-fill shopping experience.
- One notable advantage is not having to remember to place your order every time you make a purchase. This advantage can not be overstated, especially with the hectic lives we lead; people are bound to forget to make the purchase. Specify the time period that best suits you, and that’s all there is to it.
- Customers typically take advantage of subscription-based services, especially if they believe they’ll save money by purchasing regularly.
- In today’s fast-paced lifestyle, time is valuable, and by using a subscription-based service, the customer can save quite a bit of time not having to reorder each week or month.
- After subscribing, many companies refer to their customers as “members.” These membership benefits can offer anything from weekly newsletters to deals on nutrition supplement bundles. Facebook groups and other social media platforms where like-minded people share similar views and values are also made available.
- Paying for expensive products or services is made much easier, giving you the option of paying it off over time. Many companies offer excellent customer support and flexibility, so if you feel you can’t pay it off over three months, you can simply choose the 12 months time period.
- Being committed to paying for a “package” in some cases could be more expensive than if you had just purchased the product individually.
- Additionally, the chance of customers being overcharged either price-wise or in terms of payment frequency is a real concern. Many software models can make mistakes leaving the customer feeling angry and frustrated.
- Vendor lock-in can also be a concern; this is where the company may discontinue using the subscription software or may even fall into bankruptcy. In this case, the customer is left with a limited opportunity to unsubscribe from the service or product.
- Some subscription models require large amounts of information about the customer, which can lead to privacy concerns.
With our greens powder, we prefer to give customers the choice of the number of tubs to buy in advance – we also give you an email when we believe you may be running out of stock, so that you can order in plenty of time.
At SuperGreen Tonik, we prefer to give the customer total control over the pricing and regularity of their supplement supply and as of now do not offer a subscription service.
We offer excellent low-cost discounted rates for those looking to buy in bundles.
Our “5-Month Super Saver Bundle” saves you a whopping 30%, with 150-servings, equating to only $65 per tub at the low-cost of $2.17 per day.
The “3-Month Supply Bundle”, which is our most popular, gives you the customer a total saving of 20%. With 90 servings, this inexpensive bundle works out at $2.49 per day.
- Improved focus
- Increased energy
- A reduction in stress and anxiety
- Improved sleep quality
- Mental well-being
- A boosted immune system
A well-thought-out subscription-based model should seek to align the customer’s goals with the business they are purchasing from; if the customers receive excellent service and high-quality supplements, both parties benefit greatly from the transaction.
A customer who is impressed by the product’s service and quality is much more likely to return, so it’s in the companies’ best interest to provide world-class services and products.
If the customer is left unhappy, they return to the marketplace to search for other companies selling similar products or services.