Most of the subscription based startups will fail!!
Here’s why. A thread🧵
Here’s why. A thread🧵
This might happen due to an observed phenomenon- SUBSCRIPTION FATIGUE.
A gradual fall in interest to pay for subscription products or services over time is referred to as “Subscription Fatigue”.
A gradual fall in interest to pay for subscription products or services over time is referred to as “Subscription Fatigue”.
We're subscribing to different products and services for food & grocery delivery, video & audio streaming, receiving boxes of customized products and whatnot!!
What is the present picture?
Today consumers hold more subscriptions than ever before & that is overwhelming and frustrating at times.
People want more options for sure, but only up to a certain point.
This frustration accumulates and makes people cancel their subscriptions.
Today consumers hold more subscriptions than ever before & that is overwhelming and frustrating at times.
People want more options for sure, but only up to a certain point.
This frustration accumulates and makes people cancel their subscriptions.
Why is it tiring for people to get more subscriptions?
First and foremost: the accumulation of multiple monthly payments creates a sort of financial burden on the consumer.
First and foremost: the accumulation of multiple monthly payments creates a sort of financial burden on the consumer.
Second: it's hard to keep tabs on different subscriptions.
Third, people often cancel their plans because they feel that it's no value for money.
Third, people often cancel their plans because they feel that it's no value for money.
This affects businesses in various ways:
It increases churn rate and decreases customer lifetime value (CLV) along with customer satisfaction.
Any business with a subscription model for revenue can lose its competitive edge if they start losing out on its subscribers.
It increases churn rate and decreases customer lifetime value (CLV) along with customer satisfaction.
Any business with a subscription model for revenue can lose its competitive edge if they start losing out on its subscribers.
Industry in which business operates, matters?
Well, yes! A software subscription business is less likely to face a fall in the no. of subscribers than a media company providing streaming services. Hello Netflix investors💀
Well, yes! A software subscription business is less likely to face a fall in the no. of subscribers than a media company providing streaming services. Hello Netflix investors💀
So brands offering essential items or services have an upper hand over the companies providing a simple experience.
What might save the subscription providers from losing their backbones?
Those companies which prioritize retaining customers over acquiring them might combat subscription fatigue. It solidifies your customer base.
Those companies which prioritize retaining customers over acquiring them might combat subscription fatigue. It solidifies your customer base.
Other than this, considering your competitor's price while pricing your product, might help you keep your customer base intact.
In all, we can say that Subscription Fatigue is a serious threat to all the mediocre subscription providers and the subscription economy.
So any company that might want to build a subscription model should consider Subscription Fatigue while designing their products and services.
If you liked this thread🧵then do RETWEET the 1st Tweet and follow us @FinFloww for more🍻
Also get our newsletter daily on WhatsApp. Join here: chat.whatsapp.com
Also get our newsletter daily on WhatsApp. Join here: chat.whatsapp.com
Loading suggestions...