Etini
Valued Contributor
Service businesses are most suitable for subscription based pricing than per service pricing system. But only very few on-site service business offer subscription model of pricing. Here are two benefits that a service business gains from running a subscription based pricing model:
1) More cashflow per time: The business gets payment en block all at once and that helps the business with revenue and cash flow for running operations costs.
2) Higher customer retention: When a customer commits to use a service for one month for instance through subscription, there is a higher chance of him finding satisfaction from the service and committing further.
3) Better customer relationship: With a subscription model, the customer gets to interact much often with the business and it leads to stronger bonds between customers and the business.
1) More cashflow per time: The business gets payment en block all at once and that helps the business with revenue and cash flow for running operations costs.
2) Higher customer retention: When a customer commits to use a service for one month for instance through subscription, there is a higher chance of him finding satisfaction from the service and committing further.
3) Better customer relationship: With a subscription model, the customer gets to interact much often with the business and it leads to stronger bonds between customers and the business.
