These days it seems that everyone has started offering subscription
services. From CBS, to Apple, to Microsoft, companies are continuously looking
for new ways to monetize, now turning to subscription services as the next
step. Ad Age recently declared Amazon
the top player in this space, having recently launched Kindle Unlimited, a book
subscription service. This addition brings the number of subscription services
Amazon offers to nine, proving that the organization knows the value of a
customer tethered to a particular company. Amazon’s current subscription lineup
includes FreeTime, Amazon Prime, Prime Instant Video, Prime Music, Amazon Mom,
Cloud Drive, Audible Membership, Kindle Unlimited, and Subscribe & Save.
Amazon brands each of its services differently to make consumers feel as though
they are gaining added value from each of the subscriptions, and to allow
consumers to interact with their company in a way they see most fit. Forrester recently launched a report
urging companies not to jump on the bandwagon and offer subscription services
unless they can answer these three questions affirmatively:
- Does your customer need this frequently? – The best models exploit a behavior that’s already frequent.
- Can the experience be made more emotionally engaging? - Companies like Dollar Shave Club have seen initial success because they were able to engage consumers in a humorous and novel way.
- Will your solution be more convenient than the alternatives? – Hulu Plus, for instance, struggled at first, because it was only available on a small number of devices and did not add enough value beyond their standard offering.
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