Over 2 years ago, Stanford predicted that traditional, professional services should all adopt a subscription-based model, enabling customers to pay monthly – rather than through large up-front costs or annual salaries / overhead. Reinforcing this claim, Forbes also argues that monthly subscription-based services have disrupted traditional models and the e-commerce market has grown 100%, every year, for the past 5 years.
Why Traditional Services Are Becoming Monthly Subscription-Based:
On paper, organizations would be prudent to consider the subscription model movement. This model has created a ground swell, with accounting, legal, marketing, and human resource services becoming decentralized and outsourced. For those businesses providing outsourced services, it automatically moves a company away from one-time sales and instead looks to sign clients up for repeated monthly payments. That means more revenue and, with higher client retention rates, companies will also spend less money acquiring new customers or time bringing new customers through their sales funnel.
Subscriptions Aren’t Just for Consumers
Looking back over the past decade or so, the subscription model movement has proven especially popular in the B2C space, with companies like Netflix turning movie rentals into a monthly bill, Spotify turning music in to a monthly experience, and Birchbox turning beauty products into surprised delight. Tangible products pioneered the subscription model with the likes of Amazon’s Subscribe-and-Save and monthly box businesses like Dollar Shave Club.
Of course, subscription services are by no means limited to the B2C industries. In reality, there is much untapped potential for the monthly subscription model in many professional and B2B service areas, including that of lawyers, accountants, and even human resources.
This new way of working is being applied to traditional services and experts have already predicted that the subscription model will soon dominate every type of business there is as the standard way of engaging and retaining clients.
With this mindset, many innovative companies are coming forward, ultimately looking to lock in steady revenues while also pleasing consumers by offering exceptional services for fixed monthly rates. That’s exactly what startups like Surf Air are doing, giving members limitless flight access for a fixed monthly fee. What is not to love about their “All-You-Can-Fly” monthly plan?
How Can Your Business Use The Subscription Model?
When it comes to the B2B space, companies adopting the subscription model are simply thriving. Take Atled, for example. Outsourcing your HR has never been easier, and the subscription model makes scaling easy and stress-free. You only pay for what you need with each plan, including a set number of monthly project hours that you can apply to any HR-related issue or task, allowing for maximum flexibility and comprehensive servicing without having to staff and maintain an in-house HR department.
The fact is, the monthly subscription model is mutually beneficial for all parties and it’s a model that can be applied to virtually any company, whether you are offering software-as-a-service following hardware sales/leases or offering services on a subscription basis.
With companies being able to better understand and meet consumer needs all while earning predictable revenue, the subscription model is a win-win. Interested in learning more? Reach out to Atled for more information on how the subscription model could help your business, 1-866-ATLED99 or firstname.lastname@example.org