{"id":59041,"date":"2020-12-30T10:55:32","date_gmt":"2020-12-30T16:55:32","guid":{"rendered":"https:\/\/blog.cpanel.com\/?p=59041"},"modified":"2020-12-30T10:55:32","modified_gmt":"2020-12-30T16:55:32","slug":"join-the-club-the-growing-subscription-service-model","status":"publish","type":"post","link":"https:\/\/devel.www.cpanel.net\/blog\/business-knowledge\/join-the-club-the-growing-subscription-service-model\/","title":{"rendered":"Join The Club: The Growing Subscription Service Model"},"content":{"rendered":"\n

How many subscription services are you currently subscribed to? Chances are, you have more than you realize. Subscription services have become the preferred model for digital assets and have changed customers’ ownership and purchasing power in the modern age, with 8 in 10 American adults <\/a>currently subscribed to at least one such service. <\/p>\n\n\n\n

These scheduled subscription services have automated our lives much in the same way we have become accustomed to letting the “robots” do our work. Driven by instant access and low entry point value propositions, customers today are comfortable with the automatic recurring billing model, provided there is no interruption in service.<\/p>\n\n\n\n

The subscription e-commerce market has also grown by more than 200% over the past five years, fueled by a globally connected marketplace and convenience-driven lifestyles. The Subscription Trade Association (SUBTA) estimates that by 2023<\/a>, 75% of Direct To Customer (DTC) businesses will offer subscription services. Latest global e-commerce projections suggest<\/a> that by 2025 the subscription market will be worth $246.6 billion.<\/p>\n\n\n\n

In a recent blog,\u00a0“It’s Subscription World,”<\/a>\u00a0Industry Analyst Robert Jacobi noted that “The reality is that business growth now hinges on the speed by which businesses adapt to technological change. SaaS makes this simple and cost-effective. Early adoption of the right SaaS solutions for your business are critical to retain greater financial control and free up resources to focus on business growth.”<\/em><\/p>\n\n\n\n

Subscription services are nothing new, and most Gen-Xers will probably remember their first subscription being a school magazine or the infamous Columbia House Record Club<\/a>. Though Gen-Y and Millenials most likely never had the unique pleasure of receiving a dozen or so records in the mail (for only one dollar!) and then being hundreds of dollars in debt. <\/p>\n\n\n\n

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Photo: 1970’s Columbia House Advertisement <\/figcaption><\/figure>\n\n\n\n

Subscription models haven’t always been about value and honesty. Columbia House’s bait and bill, negative option billing model is just one example of how far from those bad business practices we have come with the subscription models in use today. Currently, there are three main subscription models successfully generating recurring revenue on the web.<\/p>\n\n\n\n

The Curation Model<\/h2>\n\n\n\n

The Curation Model, based on personal preferences and impulse purchases, accounts for most of the subscription box market. Think retail and meal kit boxes:<\/p>\n\n\n\n