How Subscription Businesses Have Changed The Retail World (For Good)

Marketing experts and B2C specialists have spent decades trying to figure out what makes a consumer buy a product and continue to buy. One of the biggest consumer trends to become seemingly permanent is the subscription business model. We’ve all heard of subscriptions to magazines, newspapers, even book-of-the-month clubs; but now consumers are turning to subscription-based-businesses for an innovative, ever-changing array of clothing, household items, skin-care, leisure, food, and everything in between.

Why Do Consumers Subscribe?

Subscriptions for physical products solve two big problems for consumers — they are convenient and many times save a trip to a store, and they are a predictable expense that can be planned and budgeted for more so than impulse retail purchases. Beyond that, there’s the exciting feeling of something waiting for you at your door or in your mailbox. All combined, it’s no wonder the subscription model for products has been successful. And that’s not even acknowledging the success of subscription services!

“Never Again” Moments

In 2014, Inc.‘s editor at large Bo Burlingham covered entrepreneur John Warrillow’s GrowCo speech about the rise of the subscription business model. Warrillow knew the trend was here to stay. In early 2015, the entrepreneur published The Automatic Customer: Creating a Subscription Business in Any Industry. This informative book covers nine models used by subscription companies. Practically anything can be made into a subscription and subscriptions can be marketed anywhere. As Warrillow stated: the subscription business model is relevant to every consumer.

A particularly compelling argument for subscription consumable products that we’d previously pick up at the store is what Warrillow coined the “never again” moment. One example — an energetic toddler knocks over a glass of milk, spilling onto the counter, the cabinets, the floor. The toddler’s weary parent reaches for the paper towels, remembering too late that they’ve just run out. “Never again,” the parent thinks. Subscriptions for consumable products like these solve this problem and feel like a major step forward in simplifying our lives. With subscription popularity continuing to grow and new options debuting every month, subscriptions remain relevant.

Get In On The Trend

Chances are, if you’re reading our blog, you’re already a believer in the subscription economy. But have you made the leap from believer to entrepreneur? The subscription economy isn’t going anywhere, so let us formally invite you to make that jump you’ve been considering.

Not sure where to start? Download our six-month checklist, to guide you on your way to subscription success: