Research around the world shows that business leaders believe that subscriptions are the key to growth in the “organic economy”.
A new study by international growth strategists Manifesto Growth Architects shows that 70% of businesses share the same membership and subscription models, which are key to future business growth and expansion, and are already starting to tap into this potential.
After Disney announced details of a new streaming service, Netflix to compete with Netflix, the Financial Times reported that one million paying readers each year followed the plan, and Unilever paid for healthy snack subscriptions through its acquisition of Graze, the latest models appeared after several weeks. membership quickly. This is one of the most important topics on the business development agenda in the UK.
However, a new independent study by Manifesto, which polled 504 top business leaders in sectors such as retail, finance, entertainment, automotive and utilities, is only possible for a quarter (24%) of companies that have implemented a subscription model, just ten years later (7). %) generates significant income per membership.
A quarter of business leaders (24%) have experimented with organic models but didn’t know how they would evolve, and the same number (22%) of organic products have proven their potential but didn’t know how to approach them.
In the statement, which the study also conducted in-depth interviews with 40 CEOs with subscription offerings, both the incoming results and broader market trends suggest that companies do not need to directly boost market returns or protect their consumer share. development of sustainable long-term relationships with clients or the risk of loss.
While subscription fees often define the membership model for many people, the P&L for transactional, advertising, and affiliate revenues may mean no more revenue potential, but using them for some companies can be a bold departure from “business as usual.” ”
The business, which specializes in developing growth strategies for large international companies including Merlin, Disney, News Corp, Purina, Pay.UK and Coty, the study should serve as a wake-up call for business leaders and encourage more exploration of new customer offerings. in the wake of technological developments and shifts Behavior associated with the organic economy.
The results are featured in How to Capitalize on the Membership Economy, a new report from the manifesto that shows established entertainment, leisure, retail and media sectors with the highest possible membership, reflecting the success of proven subscriber models including The Wall Street. Magazine, The Times and Netflix. Business leaders were assumed to have little potential – utilities and the automotive sector – and that assumption was called into question by a statement in his analysis.
“Netflix is a leader in the membership economy,” said Sam Jordan, executive vice president of Manifesto, which specializes in developing membership offerings, “and it’s no surprise that Disney and Apple are wearing a suit and announcing a streaming platform that is increasing long-term customer relationships and income increase”.
“All of our research and reports show many opportunities for companies that want to take that step and develop a subscription model for their customers. The success of membership or subscription models ultimately starts and ends with the consumer, and in line with that, develops the consumer proposition and consumer experience. It is important for companies to understand that potential subscriptions are put on hold in order to capture and retain new revenue streams, but this will not go well either.
“Our report is the first of its kind. Not only does it show the revenue potential of a well-implemented subscription or membership model, it also identifies the key features and work that needs to be mastered to be successful. It’s not one size fits all.”
Manifesto Growth Architects will present their findings at an event on membership models and their benefits on Tuesday 30 April from 8:00 am to 10:00 am at The London Club, 24 Endell Street, London, WC2H9HQ, featuring speakers from The Times, Revolut and turtle.