Skip to content

How to create a successful subscription model?

Table of Contents
subscription model
Reading Time: 3 minutes

A subscription model ensures that you provide the best quality products, services, and experiences to customers according to their needs and desires.

Do you know that the first industry ever to employ the subscription model was the publishing industry? Publishers have been reaping significant benefits through the subscription model since the 17th century. But the world is seeing the power of this revenue model in full force today. Data shows that eCommerce subscriptions have almost doubled every year. Entertainment platforms like Spotify and Netflix saw a tremendous increase of over 46% in subscriptions

After the rise of the subscription economy in the B2C sector, the B2B sector has also geared up. Today B2B companies are using subscription models for various services like software-as-a-service, elevators-as-a-service, engines-as-a-service, and others.

This article will shed light on why you should build a subscription model and how to create one.

Why should you build a subscription model?

By building a subscription model, your company will have a stable customer base. It means you will get an assured income at the end of the month. Secondly, we live in times of economic uncertainty, and a subscription model will help you make your business more resilient. The following points explain how:

1. Revenues can be predicted.

Companies no longer need to start counting revenues from zero. They can take the previous quarter’s revenue as the baseline and build on top of that.

2. New dimensions open for the sales team.

According to a recent statistic, 90% of the sales are done through online channels. A subscription model will allow your salespeople to upgrade their skills for the eCommerce industry.

3. Gain a 360-degree perspective about the customer.

A subscription model will help you to get essential customer insights. It will enable you to design products and services that your customers are searching for.

How to build a subscription model?

The most important thing that you must keep in mind while building a subscription model is to develop robust and long-lasting relationships with customers. The following points will explain it in detail.

1. Be price-sensitive.

Product price determines the sales you are going to make at the end of the quarter. Deciding on appropriate product price requires detailed customer knowledge based on the following factors:

a. Geography

b. Demography

c. Behavior

d. Psychography

e. Past purchasing pattern

f. Product usage level

g. Customer loyalty

h. Bulk purchases by the customer

Following a one-size-fits-all pricing strategy can prove detrimental to your business. Segment your customers based on the factors mentioned above and create different pricing strategies for different customer segments. It will enable you to provide more value to your customers.

Also Read: ERP for Subscription Business

2. Build an omnichannel customer acquisition plan.

You must acquire customers across multiple channels, including calls, emails, mobile, and social media. Capturing leads through single-channel commerce solutions has become outdated because customers use different channels for interacting with companies. For example, they may post a query on the chatbot but may expect to receive the solution in their inbox. Thus, it would be best to create multi-channel support and slowly and steadily improve your service to Amazon-like levels. A Customer Relationship Management (CRM) software will significantly help deal better with customers across every touchpoint.

3. Create an intuitive billing process.

The billing process must be error-free, convenient, and super-fast. Billing for subscription-based models is different than regular billing processes due to the following factors:

a. Billing of a massive number of customers at a single-go.

b. Dealing with prorated accounts.

c. Managing various billing rates.

d. Handling numerous usage bills.

Apart from calculating bills accurately and transparently, you must also focus on their design. Eye-catchy designs attract customer’s attention and can also be used as vital branding collateral. 


Subscription models are beneficial for companies and customers alike. They help businesses get a fixed income stream at month-end and allow customers to enjoy massive discounts. For running subscription models smoothly, companies need to ensure that they have a top-notch ERP system that has added functionalities, such as payment gateways and other commerce systems.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.


Found this article interesting? Share it on