The 5 Benefits of Subscription Services

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The unlimited subscription service option is becoming a trend

UBER
UBER

Uber’s new unlimited rides option in Manhattan is officially underway.

Starting this week, the unlimited UberPool rides (car trips that you share with other passengers going in a similar direction) will cost $ 100 for unlimited rides in the first two weeks of October (1-14) and $ 200 for the full month. All rides must begin and end in Manhattan below 125th street.

The unlimited subscription option, which is a trial expansion of the ride-sharing company’s Uber Plus program, is a growing marketing trend for brands.  

Yesterday, Amazon Prime bolstered its unlimited subscription plan to offer more than 1,000 books, magazines, and comic books. OneGo launched this year to provide users with unlimited flight subscriptions, where a nationwide plan comes to $ 2,950 monthly. In March, Rent the Runway offered customers an unlimited subscription service that lets women access a rotating designer wardrobe and borrow three items at a time for a monthly fee of $ 139.

There are still definite advantages to the single sale; yet, more and more brands are seeking out subscriptions by offering unlimited options, and here’s why:

Reliability

An unlimited subscription plan promotes value within a customer by ensuring a reliable source of product each month. When customers feel valued they are much more likely to become brand advocates. Customer Lifetime Value (CLV or CLTV) is increasingly being recognized as one of the most important metrics. It takes into account not only the customer’s current value but also their expected lifetime value.

Loyalty

Building a relationship with customers leads to improved behavioral loyalty–and thus increased bottom-line profits. Not only does an unlimited option provide a practical, hard reason for continuing to buy (the accumulation of points toward a reward, or higher levels of service) but it also provides information about the customers that allows their needs to be met more efficiently and effectively.

Control

With unlimited options, the user is afforded the freedom to search through the brand’s products at his/her leisure.The consumer can design their own experience with the company, choosing from a wide-range of products.

Exclusivity

The unlimited subscription option has the power to make a customer feel important. By giving more content to customers in your unlimited option, you are showing them that you value their business more than a regular one-time shopper.

Engagement

With unlimited content/product each month, a customer is more likely to spend time on the company’s website or app. A consumer of a brand’s unlimited subscription service has a higher chance of feeling compelled to stay in tune with the company’s progression than a single sale shopper.

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