Subscription-based Marketing Plans

We're moving away from charging for *access* to software and toward charging for the *work delivered* by software & AI agents. Don't freak out: this doesn't mean everything will become *pay-as-you-go* overnight. I can think of 7 flavors of charging for work: 1️⃣ Pay-as-you-go - No commitment, totally flexible - Enterprise procurement teams usually *hate* this! - Works best when your customers can bill-back the expense or bake it into an operating budget - Otherwise, there's a risk of customers policing their own usage (taximeter effect) 2️⃣ Subscription + pay-as-you-go - Small level of commitment helps 'lock customers in' and give them access to advanced features, support, etc. - Works well when the usage metric is getting commoditized (ex: SMS messages, compute, storage) -- you can advertise a low usage fee & make up for it with the subscription fee - Still not quite loved by enterprise procurement since their bill isn't predictable yet now includes multiple line items... 3️⃣ Three-part tariff (usage subscription + PAYG) - Similar to the above, but with a larger subscription fee that includes some level of usage "included" - Folks usually advertise the initial usage as a gift ("get your first 500 SMS messages for free!") - Including a minimum level of usage helps get the customer hooked & usually incentivizes more overall consumption 4️⃣ Usage-based subscription (high watermark) - Customers commit to a certain level of usage or tier (ex: up to 5,000 API calls per month); this is typically "use it or lose it" - Subscriptions are for a high watermark of usage -- if usage exceeds the plan in a given month, they immediate move into upgrade territory - Fear of overages + usage fluctuations encourages sales to over-sell & customers to over-buy 5️⃣ Usage-based subscription (annual drawdown) - Similar to the above, but the usage allocation can be consumed flexibly over the course of 12 months similar to a gift card - This gives the customer plenty of time to monitor adoption & plan for an early renewal/upgrade if usage is trending above their commit - Great for customers with seasonality or month-to-month usage fluctuations who still want a predictable bill 6️⃣ Roll-overs - If the customer doesn't consume their full allocation, they can "roll it over" to the next year -- typically only if they commit to a flat or increased renewal - More customer friendly, but also more painful to manage! 7️⃣ Adaptive flat rate - The customer commits to a usage-based subscription, but can use the product as much as they want with no overages/upgrades during that period - Their tier resets up/down at renewal based on their actual usage behavior - Much more predictable for customers while encouraging them to increase consumption (downside is that you could be stuck with the costs!) -- I suspect most folks will offer multiple options as they seek to balance lands, expands & tough procurement convos. The downside: complexity.

We’re two months into 2025, and the subscription brands seeing real growth aren’t playing by 2024 rules. What’s changed? Consumer expectations. Acquisition is getting harder, retention requires more than last-minute discounts, and generic subscription models aren’t cutting it anymore. The brands thriving today are focused on value, personalization, and long-term engagement. Here’s what’s working—and what’s already outdated: 🚫 Deep discounts for acquisition → ✅ Personalized offers that attract the right customers 🚫 One-size-fits-all subscriptions → ✅ Flexible tiers and AI-driven customization 🚫 Reactive retention strategies → ✅ Proactive engagement before customers think about canceling 🚫 Manual processes & guesswork → ✅ AI and automation optimizing pricing, churn prevention, and CX Subscription growth isn’t about chasing quick wins. It’s about aligning your offer, experience, and engagement with what customers actually want. Are you adapting to the new subscription landscape, or still playing by old rules? Let’s talk in the comments. ⬇️

I've been running my CFO firm on a subscription model for the past 6 years. Here's what works: The key to building predictable revenue isn't just about getting clients - it's about structuring your services the right way. Core elements of a successful subscription model: • Create 1-2 service tiers with defined deliverables • Schedule regular value-check conversations • Set fixed monthly pricing for each tier • Document all recurring processes • Establish clear scope boundaries Common mistakes to avoid: 1. Missing regular check-ins 2. Making everything customized 3. Not defining service boundaries 4. Skipping systematic onboarding The best part? Remember: clients want clarity on what they're getting, and you need predictability in your practice. A well-structured subscription model delivers both. Start with one service tier, perfect it, then expand. Your practice will transform from constantly chasing new clients to having a stable, growing revenue base.

The Surprising Truth About Subscription Models: It's Not About Locking Customers In! Are you trying to lock your customers in, or are you giving them the freedom to choose? Traditional subscription models focus on retention, but what if we flipped that on its head? What if we designed our subscription models to prioritize customer freedom and flexibility? 🤔 Reflect on this: 1️⃣ Are you punishing customers for canceling their subscription, or are you making it easy for them to come back? 2️⃣ Are you offering a one-size-fits-all solution, or are you giving customers the flexibility to choose what they need? 3️⃣ Are you prioritizing short-term gains, or are you building long-term relationships? 💡 Tips for businesses: 1️⃣ Focus on customer lifetime value, not just retention: Prioritize long-term relationships and calculate customer lifetime value to maximize revenue and loyalty. 2️⃣ Offer flexible plans and pricing to meet customers where they are: Provide personalized options to suit different needs and budgets, increasing customer satisfaction and loyalty. 3️⃣ Make it easy for customers to pause or cancel their subscription (and come back!): Streamline the process and remove penalties to encourage customers to return when needed. 4️⃣ Prioritize customer feedback and iteration to improve your subscription model: Continuously collect feedback and make data-driven changes to enhance customer experience and retention. Remember, the goal of a subscription model isn't to trap customers, but to build a loyal community of fans who choose to stick around. #SubscriptionModel #marketingstrategy #Loyalty #thoughtleadership #thethoughtleaderway

The "Fantasy"? Going from single-sale to subscription. One of our clients, a fantasy sports company, made the leap. Here’s the framework we used to make it happen: 𝐒𝐭𝐞𝐩 𝟏: 𝐌𝐚𝐫𝐤𝐞𝐭 The right time, the right market. The subscription economy is booming: ~ $2.5 trillion by 2028. The fantasy sports market is also experiencing significant growth. Fantasy Sports (US): • About $13 billion • Projected to reach $20 billion by 2027 • Football alone: $5 to $8 billion by 2027 Sports Betting (US): • About $7 billion in 2024 • Expected to hit $12 billion by 2027 • YOY growth and increasing state legalizations 𝐒𝐭𝐞𝐩 𝟐: 𝐌𝐨𝐝𝐞𝐥 An access subscription model was the best fit with no tangible products shipped. The key to a successful access model? Nail the ‘Prime’ formula: → Anchor benefit  → 2 value adds Example: Amazon Prime → Anchor: Free same-day shipping → Value adds: Prime Video, Prime Music The anchor is what people pay for. The rest are bonuses. 𝐒𝐭𝐞𝐩 𝟑: 𝐕𝐚𝐥𝐮𝐞 𝐏𝐫𝐨𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧 We designed the value proposition to resonate with the target audience. Anchor: → Exclusive fantasy betting content, and insights. Value adds: → Pro athlete expert analysis   → Betting community forum 𝐒𝐭𝐞𝐩 𝟒: 𝐏𝐢𝐥𝐨𝐭 A sound go-to-market pilot plan: Start small. Choose one city, or state. Test carefully. Refine, optimize.  Slowly expand into new markets. Results: Increase in LTV. Increase in revenue.  Increase in engagement. Here's how to apply this framework to your business. Remember ‘𝐌𝐌𝐏𝐏’ MARKET: Use market insights, trends, and data to inform your strategy. MODEL: Choose the right subscription model for your audience. PROPOSITION: Get clear on your value proposition. PILOT: Start small, gather feedback, and scale slowly. ---- Thinking about launching a subscription model? I’m offering 5 free subscription strategy sessions next week. DM me to secure your spot. ♻️ Valuable info? Repost and follow Adam Levinter for more. 📌 I post on subscription, strategy, and entrepreneurship.

86% Of US Consumers have active ecommerce subscriptions, down from 96% in 2023 Even with this stat, subscriptions are a key offering in many ecommerce businesses in 2024 and flourish with excellent user experience. I've led teams that have built and managed several of these programs and here are some points I have learned that still hold true now in 2024 that can help you build these programs. - Consumers favor managing subs in a single hub and paying for everything all at once. - The main reason customers cancel are for financial constraints, lack of interest and value perception - The biggest issue brands face is giving the customer the ability to pause the subscription - User Experience is crucial for retention and is very challenging when bundling. - Consumers are more selective but spend more once committed. - Brands must understand the entire lifecycle to maintain and grow their subscriber base - Omnichannel approaches are essential for expanding market reach and customer loyalty - The best businesses to build these subscription models are beauty, health food & beverages. Providing an undeniably valuable experience is crucial for retaining subscribers. Focus on personalized user experiences leveraging data effectively to deepen customer engagement. (Data Source: Subsummit) #SubscriptionCommerce #ConsumerTrends #UserExperience #MarketInsights #DigitalSubscriptions #ConsumerBehavior #CustomerEngagement #RecurringRevenue #SubscriptionTrends #SubscriptionGrowth #CustomerRetention #DTC #Ecommerce

Our most underestimated pricing strategy? Subscription models. It’s tempting to think pricing is just about one-time sales, but subscription models are rewriting the rules. They’re more than a trend—they’re a strategy for sustained growth and loyalty. Here’s why subscription models matter: → Predictable Revenue Steady, recurring income helps businesses plan better and weather market fluctuations. → Stronger Customer Bonds Subscriptions aren’t just transactions—they build relationships. Convenience, value, and personalization create loyalty. → Tiered Flexibility Different customers, different needs. Tiered plans let businesses cater to everyone—from budget-conscious shoppers to premium buyers. What about dynamic pricing? It’s another game-changer. Static pricing is out. Real-time adjustments are in. → Real-Time Adjustments Dynamic pricing powered by AI reacts to market shifts, competitor moves, and customer demand instantly. → Data-Powered Decisions AI sifts through trends, behaviors, and sales data to find optimal price points—no guesswork required. → Market Responsiveness Inflation or demand spikes? Proactive price changes keep you competitive without alienating customers. So, how do you stay ahead? 👉 Leverage Technology: Adopt AI tools to fine-tune your pricing and uncover opportunities. 👉 Stay Flexible: Pricing isn’t static—test, learn, and adapt as markets evolve. 👉 Prioritize Value: Show customers why your pricing reflects the value you provide. Subscription models and dynamic pricing aren’t just innovations—they’re the future of profitability and customer loyalty. What’s your strategy for embracing these trends? Let’s dive into it!

Q4 is the last place I’ve seen brands think, “wow, I should really change my subscription” out of the blue but it is FILLED with untapped potential if you play your cards right 5 changes subscription brands can implement in the next 4 months to crack $1M before December 31st #1 DEFAULT TO SUBSCRIPTION ON PRODUCT PAGES - Stop hiding your subscription option. Make it the primary choice. - Offer subscription with a plain text link: "No thanks, pay full price." - Force them to actively choose the worst deal. #2 COMMUNICATE IMMEDIATE SAVINGS UPFRONT - Your buy box needs to scream the core benefit: price reduction. - Don't bury the savings in fine print. Make it impossible to miss. - "Save 15% + free shipping" should be the first thing they see. #3 INCLUDE SUBSCRIBER TENURE IN REVIEWS - Dirty hack nobody's using: - Show review timestamps like "Subscriber for 9 months" instead of just dates. - A 5-star review from someone who's been subscribed for months works WAY BETTER than a one-time buyer. #4 TARGET REPEAT BUYERS WITH SUBSCRIPTION FLOWS - Don't waste this on first-time customers. Wait for the second purchase. - Once someone buys twice at full price, they're telling you they love the product. - Hit them with your best subscription offer immediately. #5 FREE GIFTS + SUBSCRIPTION INCENTIVES - Price isn't everything. Stack value with exclusive subscriber perks. - First month free, bonus products, subscriber-only flavors - give them - reasons beyond savings to stick around. There's a lot of upside that we can determine really fast with the volume of subscribers you can generate in these peak buying times.