Ease of contracting and canceling the service
Companies that want to invest in this business model can manage recurrence using subscription management software , which helps with actions ranging from recurring billing to automating promotions. 5 typical features of the recurrence economy – Services provided with some periodicity (for example: monthly, quarterly, half-yearly or annually); – Existence of different types of product or service plans, with more or less benefits; – Offering discount coupons or trial periods to attract consumers; –– the action is usually carried out online, without contact with sellers; -Recurrence in financial return, generating more stable cash flow and predictability in billing. In addition to investigating the amount that consumers are willing to pay for different types of subscriptions.Capterra also addresses in this study whether respondents see future potential in this type of business. It is worth mentioning that, to gather the information in this study, 1,002 people from all regions of the country were interviewed, who should shop online at least once a month (check out the complete methodology at the end of the article). The different types of subscription model In Capterra's research, to facilitate understanding and analysis of the Phone Number List different types of subscriptions available on the market, the following division was made: Traditional subscriptions: these are the most popular paid subscriptions, whose service is offered in the virtual environment, such as video or music streaming platforms. Netflix and Spotify are some of these models, for example. Non-traditional subscriptions: these are more segmented types of online subscriptions that offer services or deliver products on a regular basis, such as boxes of beauty or entertainment products (cosmetics or books, for example), supplies products (such as coffee capsules) , fitness/wellness platforms and educational platforms.
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With that in mind, we investigated which are the favorite models, indicating that traditional subscriptions are the most prevalent among respondents – 58% said they have subscriptions to this model. Traditional subscription services are preferred by respondents To a lesser extent, 5% declared that they subscribed to non-traditional subscriptions – in this context they refer to product boxes, supplies, among others, as mentioned above; already 31% have both types: traditional and non-traditional. Services will gain more popularity, according to respondents If for consumers the subscription model stands out for its convenience, for businesses that bet on this type of service it can be a way to diversify and increase their revenues. A report published by Gartner (available in English to subscribers) predicts that, by 2024, subscriptions will contribute 20% to revenue growth for digital commerce.
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