Subscription-based Model

Understanding Subscription-based Model through the example of Netflix

Popular subscription-based businesses:

Key to Success:

  • Determining the goals early-These goals will then help you define how you build your buyer personas and structure your pricing tiers. Matching the features included in your tiers with the needs of different target customers helps you craft a better overall strategy
  • Boost acquisition with a better experience- It’s a simple equation: more customers = more revenue. A great customer experience will improve your acquisition numbers over time.
  • Streamline the billing process- Most modern software services have several complex processes involved in account billing. The customers shouldn’t suffer a complicated billing process for very long. The customers must realize the value of your product or service every step of the way.
  • Plan for growth before it happens- A good subscription business model helps you scale. This steady stream of predictable income, evaluated against churn rates and operating costs, ensures the growth you project is sustainable.
  • Change pricing often as you refine your product- Create a process for re-evaluating your pricing every six months. While updates and improvements to your product usually necessitate an update to your pricing structure as well.
  • Always give customers a choice- A one-size-fits-all price doesn’t work for subscription businesses. Give customers the choice of a specific pricing tier based on their individual needs. This also appeals to more buyers, which can drive more customer acquisition.




The DTU branch of world’s largest university-based consulting firm, 180 Degrees Consulting.

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The DTU branch of world’s largest university-based consulting firm, 180 Degrees Consulting.

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