Subscriptions and Growth Marketing

While tackling first time with Growth Marketing in the summer of 2017, it was my first few months in CAREEM. We started building an amazing team whom are agile, super hardworking , jack of all trades but master of serious some…

While competing with a giant, a.k.a UBER; with loads of money, resource and technological advantage, we were trying to find the area how we can pull the competition to a place where we can bring our abilities like David did to Goliath.

Having competition on new user acquisition from digital and other marketing channels , activating them with aggressive offers trying to retain and increase their usage needs huge amount of subsidisation and budget. More over you spent super high amount of time while doing this super detailed marketing despite you have a good automation or not.

Why then we preferred to move to subscriptions or packages in Ride Hailing ?

The answer is not so simple as Subscriptions has loads of benefits. Today I am going to start summarising some pros and cons of Subscriptions and why especially in the era of 2020 you should start experimenting it for your products.

ADVANTAGES FOR THE CONSUMER

  • One of the core reasons is the Millennium and Z Generations consumption habit change compared to X and Y. Ownership is something that is not cool. People do not own things any more, they subscribe and use and drop when ever they want. They do not want to own cars that’s why they are using Ride Hailing , Micro Mobility. Same for not owning a DVD Player, they have Netflix

Fixed amount of payment for a service you know. You know what to pay. It is always same day, same time being charged to your card or bank account

image borrowed from link

ADVANTAGES FOR THE COMPANIES

  • More Revenue. Period. Not in the short run, but in the long run. You can predict your revenue forecasts better as well as slowly increasing better margins. ROI always increases. Compared to your standard models such as transnational way of making revenue, subscriptions requires less marketing effort and budgets to grow your KPIs. You can even cross sell with partner marketing and increase additional revenues. Ex: Buy a package get delivery free.

Here are some of the articles that I tried to curate from my search on Web and Medium to continue reading and lets discuss together…

MEDIUM ARTICLES

· Rise of Subscriptions and the Fall of Advertising

· What If Universities Offered Subscriptions?

· The Subscription Business Model Will Fail, Here’s Why.

· 7 benefits of the SaaS subscription software model

· Are Subscriptions The Only Revenue Model For SaaS?

· Paid Subscriptions Built Directly Into Verasity

Web content

· Why You Should Use a Subscription Business Model

· Why 2020 is the year of subscriptions

· Subscriptions: The Next Frontier In Environmental Sustainability

· The 5 Benefits of Subscription Services

· 5 Tips for Growing Your Subscription Business

· 5 Reasons to Offer E-Commerce Subscriptions
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EMRE TOK

Consultant of Growth & Product Marketing
Former VP of Growth Careem
Ex Microsoft

Product. Growth. Marketing. Mobile. Former VP Growth Careem. xMicrosoft. Investor: deepzen.io, ziina.me fodel.com missafir.com lidio.com.tr abwaab