With an existing subscription, it’s easier for customers to purchase new products or switch to a different subscription model within the same service.
In addition, regular belgium phone numbers customers who have subscribed to the service for a long time tend to be loyal to the service. They promote it among their friends.
Meanwhile, regular purchases give you more insight into customer behavior . You can continually improve your product and keep customers coming back for more.
Easy to check services or products
Many subscription services offer free trials.
In the case of a one-time purchase, users may not always have the opportunity to try the product. This greatly increases the threshold for new customer acquisition.
Of course, there’s no guarantee that after the free period, the person will sign up for a paid subscription, but in this case, the business still has the potential customer’s contact information.
This means there is an opportunity to get feedback, improve the product, and try to bring back users.
Key metrics for e-commerce subscription businesses
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From the beginning of the fiscal year, businesses built on a subscription business model can predict annual recurring revenue (ARR).
Importantly, in this case we are talking about a fixed, regular payment volume, regardless of the one-off payment.
However, churn, as well as unearned revenue from those who cancel, should be taken into account. Annual Contract Value (ACV) helps drive revenue.
Therefore, the formula is as follows (n – years)
