Subscription-based businesses are becoming more popular than ever. Many businesses that formerly employed the pay-once are now transitioning to the subscription business model. This is due to the numerous benefits of invoicing clients on a recurrent basis. This enables the business to provide more engaging experiences to your clients across the whole buying and paying cycle, resulting in increased customer retention and, as a result, recurrent revenue growth.
According to a report from UBS, subscription business models could grow from a $650 billion market to a $1.5 trillion market between 2020 and 2025. Especially in Malaysia, this model has seen wide acceptance and recognition. Many local businesses, ranging from tiny to huge corporations, currently employ the subscription model. This model is being used in varied types of industries like entertainment, education, and e-commerce. Read on to know more about the subscription business model and its benefits.