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How Subscriptions Increase Fixed Revenues

Simply put, fixed revenues for most businesses look like consistent subscription payments.  

As a business owner, a large amount of fixed revenue is something you should strive to achieve to generate consistency and reduce the stress of variable income as a business.  

Fixed revenue can be in the form of monthly payments for Software as a Service (SaaS), subscriptions, or even dividends from investments.  

We’ll cover the power of subscriptions as it comes to fixed revenues for businesses. 


Benefits of Subscriptions 


Subscriptions increase a company’s monthly fixed revenues. 

They likewise incentivize reoccurring customers, which increases the likeliness of referrals to drive long-term profit. 

If a customer likes your brand enough to subscribe monthly, they will most likely refer your program to another customer and expand your customer base. 

So, increasing your amount of subscriptions can truly benefit your businesses long-term, especially through eCommerce subscriptions. 


eCommerce Subscriptions  


With an eCommerce platform for your business, customers can choose the item they’d like to subscribe to, choose their delivery date, and keep their card tokenized on file. 

This means that a certain credit/debit card is charged monthly and kept on file for future purchases. 

Tokenization also increases the chances of impulse purchases, which is when a customer is tempted to buy a product with little friction between impulse and sale. 

For example, Amazon shows ‘frequently purchased together’ options, to increase the amount of impulse purchasing. 


Subscriptions for Your Industry 


We believe subscriptions are beneficial for businesses in any industry. 

Here are a few examples: 

  1. If you own a hair salon, you can offer a subscription package that includes haircoloring services every two months 

  2. If you own a retail storeyou can offer the ability for customers to choose three items per month at the price of your subscription model. 

  3. If you own a nail salon, you can offer a monthly nail subscription at a slightly lower price – to ensure reoccurring customers. 

  4. If you own a restaurant, you can offer a subscription package where a customer can enjoy a three-course-meal every two to three weeks, at a slightly lower price.

In all of these examples, customers are being charged monthly at their chosen date and time with your subscription. 

Franpos believes that the subscription model can be applied to any business and we hope you have been inspired by some of these ideas. 

If you would like to speak with one of our marketing specialists about how you can apply a subscription model to your business, you may book a free demo here. 

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