subscription-model

Vocabulary Word

Definition

'Subscription model' is a business plan where customers make regular payments to access a product or service. It's like paying a monthly charge for your gym membership.

Examples in Different Contexts

For streaming services, the subscription model grants customers access to a library of content for a monthly or annual fee. A streaming service executive might explain, 'Our subscription model has revolutionized the way people consume media, providing unlimited access to movies and shows at their convenience.'

Practice Scenarios

Business

Scenario:

We need to increase our customer retention rate and regular income. Can a change in pricing strategy help us?

Response:

Adopting a subscription model would ensure a predictable monthly revenue and could increase customer loyalty.

Impact

Scenario:

Our mission is to deliver eco-friendly products to our customers consistently. How can we make sure they get the products regularly without any burden of single-time high-cost purchase?

Response:

We could implement a subscription model. It would ensure regular delivery of our products without burdening the customer with a large one-time cost.