What are the Key Factors defining the Success of Subscription Economy?
There has been a massive shift in the way businesses run with the advent of a new subscription trend in the business market. This new business environment is termed as ‘subscription economy’ or ‘membership driven economy’. We can see a boom in subscription-based business models everywhere. Today, we would prefer to subscribe to music rather than build a collection of CDs. In the modern times, people are leaning towards services rather than purchasing one-off products. This is why it makes perfect sense for the companies to adopt subscription- based model.
“Change is the only constant we are sure of.” That’s why the subscription economy model has gone mainstream faster than we expected.
The ever-changing need of travel business has led to building the business around ‘subscriber experience’. It focuses on subscriber trust and leverages on initial contact through service delivery, support, travel membership, travel loyalty programs, payments, and renewal.
Here are the five compelling factors that help to build a successful travel business around subscription experience :
- Let subscribers be the owners
The underlying principle of the subscription economy is to let the subscribers be the owners of the services they choose. Don’t force the members to consume more services than they actually need. Most subscribers are comfortable being members on a monthly fee and the flexibility to choose the services they want. If you can provide them with the services that they can align with their need, you can create loyal customers.
- Adapt and improve
Consumers these days like to customize everything. So, it is important to provide them with what they need or adapt to their changing needs. It is important to know their preferences and provide the subscribers with multiple options so that they can adapt the service as per their preference. This will lead to retention of old customers and pave the way to making new ones.
- Increase customer loyalty
The willingness to improvise is the key to increasing customer loyalty. The ultimate goal of subscription economy is to make long-term subscribers and continually keep them engaged by improving the services. You need to keep coming up with new features and services to entice the loyal customers. This can actually lead to new upgrades from the customer-end and that may increase their level of services.
- Encourage customer interaction
Getting connected is a sure way to keep the customers engaged for a lifetime. Look for ways to connect to them and deliver your services through different avenues. Social media plays an important role in the retention of customers. You can be creative and get them engaged through fun games, polls, quizzes, contests etc. It is all about delivering value to your customers with some set of meaningful interactions.
- Giving the ultimate power to the subscribers
It is important to build trust and loyalty into your relationship with the customer to make them engaged for life. This means giving your customer the ultimate power and control. Your customer must able to confide in you when it comes to privacy and security. Your customer must know that you care about their privacy as much as they do and that implies letting them control their privacy settings. This will deliver a positive experience on the way forward and inspire mutual trust. In the long run, this will pay off in the form of high revenues.
Custom Travel Clubs are the leading B2B membership based travel club fulfillment company that creates, operates and helps market travel clubs for brands and organisations around the world. We provide white label travel club platforms & solutions.
Custom Travel Clubs has partnered with the best in the industry to provide best deals on travels to the members. Our Loyalty program provides the best rewards, benefits and savings to the members. We make it easy for members to save on travel so that they can take the vacations that matter. See the full list of all the travel benefits we provide.
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