Saturday, December 24, 2022

Why Subscription Businesses Fail?

3 Reasons Subscription Businesses Fail @ NirAndFar

Fundamentally, a successful subscription business’s economic value is a function of the strength of the habits they create. 

fundamental attributes of habit-forming products to identify how companies hook consumers.

 four steps successful companies build into their customer experience  “hooked model”:
  • Trigger (which prompts customers to use the product)
  • Action (the habitual behavior)
  • Variable Reward (which satisfies users’ need for the service)
  • Investment (which makes the product more valuable to the user with use)
common errors companies make launching and running subscriptions:

1. Too Many Steps to Psychological Relief

2. Not Offering Enough Novelty

3. Lack of Stored Value

3 Reasons Subscription Services Fail @HBR

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