In [[The Personal MBA]] a //subscription // is defined to  provide tangible or intangible benefits on an ongoing basis in exchange for a recurring fee. It is one of the [[Twelve standard Forms of Value]] (Form of Value #4 of 12). For a company a subscription is an attractive form of value as it provides a steady stream of revenue. Subscriptions allow a company to build a steady state of loyal customers. The key to subscription is to make [[Customer attrition]] as low as possible and keeping existing customers happy.
!Key Points:
* Subscription programs provide tangible or intangible benefits on an ongoing basis in exchange for a recurring fee.
* To create a successful subscription you must:
** Provide value consistently to each subscriber.
** Build a subscriber base and constantly attract more subscribers to compensate for attrition.
** Bill customers on a regular basis.
** Retain subscribers as long as possible.
* The attractiveness of subscription models is its predictability. This form of value ensures a certain revenue in every billing period.
* The key is to keep customer attrition as low as possible by keeping your subscribers happy and constantly attracting new customers.
!Questions for Consideration:
* Does delivering value as a subscription / continuity program make sense for your business idea?
* If so, what do you need to plan for to make it successful?

Source: http://book.personalmba.com/subscription/
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mbi_public
created
Sat, 15 Jan 2011 18:15:47 GMT
creator
dirkjan
modified
Sat, 15 Jan 2011 18:15:47 GMT
modifier
dirkjan
creator
dirkjan