Initially, I was turned off by the idea of subscribing and having to pay monthly or annually for a service or product, but lately my perspective has changed. Currently, I use two products that require no subscription and two that do for football training and development. All four require a hardware device and a software app. At first, the non-subscription products seemed better because you pay once and that's it. But over time, it has become obvious that for software-dependent products, you're probably better off with the subscription option.
The main reason subscription-based products are better, in my experience, is that the company continues to update and improve their software. One of the products I use without a subscription is a GPS tracker for metrics like top sprinting speed and total running distance. While it still works, it has become increasingly frustrating because 1) the app hasn't had a proper, useful update since I first got it three years ago, and 2) the app is getting buggier over time. In contrast, another wearable I use called Whoop (subscription-based) is constantly updated and improved. This makes sense, given that the non-subscription company only makes money when their hardware is sold, limiting their ability to continue software development. In contrast, a subscription-based company has regular revenue, allowing them to continuously enhance the software.
All in all, I've learned that there is a significant advantage in opting for the subscription model, especially when the product relies heavily on software.
What are stackers thoughts and experiences on the subscription model? Yay or nay? Any alternatives?
23 sats \ 0 replies \ @freetx 3 Jun
But over time, it has become obvious that for software-dependent products, you're probably better off with the subscription option.
The company I've worked for has a specialized accounting system used in niche industries. For the reasons you mention, there is simply no way to make such a product work except via subscription pricing.
Software requires constant changes - both because of technical reasons (bugs or upgrades to new OS version), also regulatory (changes in tax laws, etc) and lastly obviously new features.
I think the key is easily allowing the customer to "pause" the subscription, so if they are not using it they can't pause then resume. I think advertising this "pause-resume" feature is key to getting over the customer friction to sign-up, so they don't feel like they will stuck endlessly paying for something that they might not need in future.
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10 sats \ 0 replies \ @MANI 3 Jun
The subscription model offers numerous advantages, providing businesses with a steady revenue stream and fostering customer loyalty through regular engagement. For consumers, it delivers flexibility and access to services without significant upfront costs. However, it also brings challenges like subscription fatigue and the risk of high churn rates if ongoing value isn't perceived. Despite these drawbacks, the model has proven successful across various sectors, from streaming services and software to e-commerce, by continuously evolving to meet user needs and enhancing the overall customer experience. Ultimately, its effectiveness relies on delivering consistent, high-quality value to retain subscribers.
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