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

hooked-workbook.pdf

Summary of Hooked: How to build habit-forming products by Nir Eyal

Building Habits- Forming Products — SheCanCode