Younger Americans Are the Perfect Demographic for Subscriptions

It’s not a secret that young Americans of the millennial generation are in different financial straits than their parents. Many of them have thousands of dollars of student loan payments – which necessitates hefty monthly bills – so they’re not making large purchases such as homes and vehicles at the same rate that older generations did. Instead, they’re looking for goods and services they can pay for monthly. For this reason, young people are driving what’s becoming known as the subscription economy.

Why Subscriptions?

Since younger people don’t have the lump sums for large payments, they prefer to buy on a month-to-month basis. In fact, 92 percent have active subscription services, according to a recent survey conducted by Vantiv and Socratic Technologies. According to recent data from the Consumer Technology Association, music and video streaming services alone are projected to generate close to $32.3 billion in revenue in 2020. Add in everything else younger Americans are buying by subscription such as clothing, cosmetics, wine and beer, shaving supplies, musical instruments, and even cars, and the potential of subscription selling becomes enormous.

For these younger Americans, the subscription economy offers an option that’s simple, predictable, recurring and tailored for them. It’s probable that as this generation ages and becomes more financially secure, their subscription habits will likely stay with them. For this reason, it makes sense for companies to marketing subscription services towards the millennial generation for the long term.

How Do Subscriptions Benefit Your Business?

One of the biggest benefits of a subscription model is more regular and predictable cash flow. For smaller businesses or new businesses, the subscription model provides an opportunity to compete with larger or better-established companies. With an understanding that young American consumers are the highest adopter of subscription services, companies should be placing marketing dollars towards that demographic today to ultimately increase company value. It’s vital, however, to have an effective infrastructure for subscription management in place.

Look for a Dedicated Subscription Management Platform

Subscription DNA’s subscription management software is ideal for small businesses, and features group enrollment tools and group communications, email marketing automation, cloud billing automation and payments, intuitive membership management, CRM and premium content and paywall management. Your customers can even log in and manage their own accounts right from your Web site.

Even small businesses just beginning to use the subscription model can quickly and easily build the type of community that keeps subscription customers engaged, interested and loyal.

Contact Subscription DNA to learn how you can market to, communicate with and support younger consumers.   

Subscriptions Services News Round-up: May 2019

We talk a lot about subscription services here on the blog and why they’ve become such a popular and important space for businesses to operate in.

News about companies launching into space is constantly being announced as businesses large and small place their stake in the market. In this post, we’re overviewing some of the latest news headlines being announced regarding subscription services.

Apple, who is no stranger to innovation, understands how big the subscription services market is and has been working on a number of different angles to capitalize on it. It even said recently that it’s shifting focus on the services side of its business as iPhone sales continue to fall.

In its recent quarter which closed in March, the company had reached a record high of over 390 million paid subscriptions for Apple Services.

From a possible gaming subscription service that many are calling a “Netflix for games” to a monthly news subscription service, the tech giant knows exactly what consumers want and is making efforts to deliver.

Speaking of the Netflix comparison, another company that’s starting to offering subscription services and being compared to the streaming video company is Enterprise. The car rental company has kicked off a rental subscription service for cars in three states that lets drivers swap the car they’re driving out up to 4 times a month.

In a world where convenience and experience are highly valued, it makes sense that people are going to look to innovations as a way to consume, test out and even invest in new products and services.

Whether you’re a small start-up or a larger well-known company – there’s a piece of the pie for everyone in this budding industry. So long of course, as you use all the tools at your disposal required to invoice, bill, manage and maintain the subscription services.

That’s where we come in.

Subscription DNA provides a robust administrative console for managing accounts, automating the recurring invoices, processing transactions and more. Get subscription billing, subscription management, paywalls and authentication all in one powerful SaaS platform.

Contact us today!

Success with Subscription-Based Content Requires Focus and a Good Platform

It’s been a rough year for media companies, and 2019 has barely started. Layoffs at BuzzFeed, Verizon Media and Gannett have underscored that traditionally successful media organizations – even in the modern digital age – are having a hard time making ends meet in an era when readers expect everything for free.

It’s become increasingly apparent that to survive, media companies will need to create enough value that audiences will pay for it through a paywall or subscription. This means boosting the quality of the content and trying not to be all things to all readers.

Creating Quality Niche Content

“To be successful in the future, publishers should still create the niche content that draws audiences – for which they might even pay a subscription fee,” wrote Sarah Sluis for AdExchanger. “But publishers must find new and creative ways to monetize those passionate audiences, to entice brands to connect with them and complement their platform advertising.”

Offering free content in competition with platforms such as Facebook and Google is a losing strategy. Likewise, offering generic, poorly prepared content under a paywall is also a losing strategy.

Companies with media aspirations need to identify their potential super-users, produce high-quality content aimed at those readers and then induce them to pay for it. At a recent AdExchanger media event, Bloomberg CEO Justin Smith called it a “radical resizing and rethinking, and reality acceptance process” and noted that companies “have to deal with the realities of 2019.”

A Sturdy Subscription Platform

Content isn’t the only challenge, however. Most media companies don’t have a solid foundation in place for creating a paywall. Software-as-a-service-based solutions such as the offerings we provide to clients can help media companies and others build a custom process that precisely matched their business model.

“To run a successful subscription-based web site, you need the right subscription billing and membership tools and the right team,” according to Subscription DNA. “[Our] clients range from small businesses to large ventures serving remote software, educational enrollment to video delivery, digital and print publications, e-learning, medical programs and more including both retail bricks/mortar establishments and online web applications.”

The solution enables not only payment collection and reporting, but subscriber communications and marketing, group email notifications and membership management. Contact us today to get started! 

Research: More Consumers Are Turning to Subscription Services than Ever Before

Subscription services are gaining popularity today as the market seeks out new, convenient and fun ways to buy products and services. Also to quench their thirst to learn about new things that can enhance their lifestyles.

One recent report from Digitas took a closer look at the rate at which people are turning to subscription services and why they’ve become such an in-demand service for the market.

The new research, “The Subscriber’s Dilemma: From ‘More Please’ to ‘No Thanks,”  conducted by the Harris Poll for Digitas,  surveyed over 2,000 U.S. adults and found that among them, over 1,400  currently have active subscriptions services.

While these numbers are promising, there is another layer for brands to consider when it comes to providing value while beating out the competition.

Overcoming Challenges

Delivering just the right amount of communications and outreach, accurately and consistently billing for these services are a few of the hurdles brands face without the right tools in place.

As more companies jump on the subscription services bandwagon, it’s important that they create services and offer products that are must-haves if they want to draw in the number of subscribers needed to be successful.

The goal is to offer, “convenience, access, and perks that they feel they can’t live without,” according to the company.

The report also looked more closely at the types of subscription services consumers we’re gravitating toward and found that clothing and entertainment ranked high on the list for “must have services” with transportation and personal care subscription services failing to impress at this time.

As far as reasons consumers are choosing to subscribe, they noted validation from friends and peers about their subscription items was more important than gaining access to exclusive content when they choose a service.

Other telling information released as part of the study and of extreme importance for companies as they get started with their subscription services, is the fact that respondents said they prefer to receive communications from the subscription companies via email with many saying they’d prefer not to be contacted by a chatbot about the service.

Understanding the market and developing solutions and services that target get the right audience is key when building a subscription-based service.

SubscriptionDNA makes it possible to save time, money, and do more to please customers and potential business. Our enterprise cloud billing and membership management software makes it easy to control every aspect of your subscription business. Streamline business and save time.

Contact us today to get started!

Movie Subscription Company’s Woes Due in Part to Customer Support Problems

roll of vintage movie tickets

Early discoverers of MoviePass, the “all-you-can-eat” cinema subscription services, often wondered how long the sweet ride was going to last. In its earliest inception, subscribers to MoviePass paid a flat fee of $9.95 per month and were able to see as many movies as often as daily. For frequent cinema-goers, the deal seemed too good to be true.

Turns out it WAS too good to be true, as the subscription service’s three million subscribers are discovering.

Going forward, MoviePass subscribers will find that the standard plan will be $14.95 a month, and the service will begin putting limitations on what basic subscribers can see, with some blackouts on new, popular films. Subscribers will also be limited to three films per month. According to the company, the measure is being implemented to “drive attendance to smaller films and bolster the independent film community.” Snafus with the app prevented many moviegoers from using the service for some of the summer’s most popular hits, including Mission: Impossible—Fallout, leaving subscribers angry.

Whatever its woes, MoviePass is about to have more competition. Last month, cinema giant AMC debuted its Stubs A-List, which allows consumers to see up to three movies per week for about $20 a month. The service includes Imax and 3D films. Analysts wonder if this model can be sustainable, even with the higher price tag.

Experts believe that MoviePass’ troubles are due to 15 percent of its subscriber base, who are “super users” who see more than three movies per month. MoviePass pays full price for tickets from theaters, so the company has been hemorrhaging money. Another reason for its troubles is a more familiar woe: customer service.

“It seems to be the official end of company’s unlimited offer,” Daniel Loria, VP of content strategy and editorial director at Box Office Pro, an industry trends and data site, told Fortune. “The big issue for MoviePass is they haven’t gotten it right when it comes to customer service.”

The subscription business model simply can’t work without a good customer support framework such that offered by Subscription DNA. Our powerful software-as-a-service platform creatively integrates subscription billing, subscription management, customer support, paywalls, and authentication.

Using the solution, customers can login and manage their own accounts right from our website. Subscription companies can quickly manage accounts, automate recurring invoicing, analyze reports, communicate with targeted user groups, process transactions, generate payment requests, track member login statistics and much more.

While many companies are finding resounding success with the subscription model, it’s important to ensure that you have the right subscription support solution in place to ensure that customers’ needs are being met, and your cost of doing business doesn’t exceed your profits —  to evade the fate of MoviePass.