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BizReport : : November 07, 2018


Publishers: How a subscription model could increase revenue

Subscription models aren't new in 2018, but subscription models do continue to grow, whether they be for makeup or personal products or newspapers and magazines. We chatted with Namagoo's Eyal Katz about the importance for subscription models for publishers heading into 2019.

by Kristina Knight

Kristina: What should companies consider when adopting a paid subscription model?

Eyal Katz, Senior Marketing Manager, Namagoo: Adopting a paid subscription model may require a complete change to a company's business. Whether you're an eCommerce storefront, a digital publisher or another type of online business, the reason most companies consider switching to a paid subscription model is for consistent and stable revenue that is easier to predict over time. However, the trade-off of this predictability is that growth is more incremental and can, at times, be slower.

Kristina: What's the difference between a subscription-based business model and other models such as, customer churn, user lifetime value, branding, customer support, etc.?

Eyal: There are several differences between the paid subscription model and other monetization models. However, I'd like to reference one difference that often gets overlooked. The technological infrastructure required to support subscriptions is much different. Supporting subscriptions means supporting a great user experience that increases engagement and satisfaction metrics. This focus on user experience can present new challenges previously unfaced. For companies that want to scale subscriptions quickly, the best way to go about it is by incorporating third-party solutions that specialize in creating better user experiences. The problem with that strategy is that some of these solutions end up slowing down web properties. Success with subscriptions requires constant monitoring of new third-party software so they don't end up hurting your business more than they benefit.

Kristina: Why should businesses keep user experience top of mind when implementing this new model?

Eyal: There are two keys to success with paid subscriptions. First, it doesn't matter if your product is high-production value documentaries or subscription razor blades, the experience of consuming the products needs to provide added value. Second, you need to have an infrastructure in place to support every aspect of this model.

Kristina: What are the common mistakes made when adopting a subscription-based business model?

Eyal: Thinking you can simply keep doing what you're doing and just gate a portion of your content or product offering and you'll have success is the single most common mistake businesses make when moving to a subscription-based model
Namagoo has released a new ebook about website subscriptions, which can be accessed here.

Tags: content trends, digital subscription, Namagoo, subscription model, subscription trends










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