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Subscriptions are expected to grow 653% in the next 4 years

Subscriptions are expected to grow 653% in the next 4 years.

What you may not realize (which most companies also don’t) is that subscriptions can provide significant positive financial outcomes for a company including, but not limited to:

1 - Higher customer lifetime value (LTV)

2 - More predictable budget and inventory forecasts

3 - Greater business valuation for exits 
 
Keep in mind, however, that adding a subscription-based product or service doesn’t just mean simply setting up the ability to get an ongoing shipment or service for a lower cost and ultimately put it on autopilot.

It has to be done right, or, it could either hurt the brand or be a lackluster waste of time and effort. 
 
Proof that subscriptions are here to stay:

∙ In 2021 alone, existing subscription box brands grew their customer base by 31%

∙ Offering subscriptions has been shown to increase overall customer purchases.

∙ The average U.S. consumer now has (4) subscriptions 
 
To be successful at subscriptions, these (4) methods are essential:

1 – Avoid the ‘add-on’ approach – Figure out your consumers’ unmet needs and how your subscription program will solve a business problem rather than mindlessly tacking on subscriptions to existing services and products. 
 
2 – Win new customers by providing value—the right pricing, offerings and benefits  
 
3 – Reduce churn by fixing credit card failures, saving canceling customers with the right solutions, upgrading and upselling term lengths and winning back canceled customers 
 
4 – Retain customers with great products or services and a variety of great experiences 
 
Do you have a subscription?

If yes, are you providing value and great experiences while also reducing churn? 
If not, what’s stopping you? 

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