What is a subscription club? First Phone Number List of all, it is important to define the concept of a subscription club. In short, it is a business model where the customer pays to receive products or services on a recurring basis. We have been accessing some services in a recurring subscription format for years, such as cable television plans, telephone plans and even newspaper subscriptions. However, subscription clubs act differently, forming a community and, in fact, investing in forming a club of people interested in that topic. In general, the same items are made available every month to people who have signed up for that subscription. While with services, you pay to enjoy the benefits of a platform or have your favorite channels on your TV. Subscription clubs can also be adapted for both physical and digital products – and even merge both. And why is it a very attractive business model? Any digital entrepreneur or company that chooses to create a subscription club will have a source of recurring revenue. As it is a project less impacted by seasonality, it allows for greater predictability.
Plus, subscription clubs are a great way to build customer loyalty. By allowing greater engagement with the brand, you will be able to have an even greater Lifetime Value – that is, this person's average ticket while they are a customer will grow even more. Consequently, the Return on Investment (ROI) will also increase. Main characteristics of subscription clubs We have already mentioned the differences between subscription clubs and subscription services. There are also other characteristics that mark this service. Below, you can check a list of them all – whether for businesses with physical products or digital content: recurring payments As previously stated, the subscription club is a business model based on recurring payments. In other words, the service is automatically charged to the customer's credit card via automatic debit to the account associated with the platform. But what defines the frequency of these charges? Generally, the subscription is renewed monthly, although some offer different prices for monthly, semi-annual and even annual plans – the most common is that the price for long periods is discounted.