Subscriptions are typically referred to as a lazy business model. You don’t have to go out on the first of the month and earn money to cover your expenses. Your income is more stable. In that way, lazy is good.
A predictable income
If you think subscription models are only for big tech companies and software-as-a-service (SaaS) businesses, think again. Subscriptions can be incredibly valuable for electricians, auto repair shops, and other tradespeople too—it can transform your business from chasing after customers to having them on a consistent basis. It’s about creating a steady stream of income, building stronger relationships with your customers, and having more time to focus on what you do best. Let’s take a look at why subscription models can be a smart way to run your business—even if you’ve never considered it before. Here are eight specific advantages of adding subscriptions to your portfolio!
1. Predictable income – goodbye to financial guesswork
Nothing in life is guaranteed—the same goes for running a business. However, with subscriptions, you can create a foundation for more predictable revenue, making it easier to allocate funds across your budget. Tired of the “who knows what next month will bring?” feeling when it comes to your business finances? Subscriptions might just be your solution! Instead of constantly chasing new tasks and customers, you can secure a steady monthly income. Customers pay a fixed amount for your service—perhaps a maintenance subscription where you regularly service their home or buildings. With a service agreement or subscription that renews automatically, you’ll know exactly what will be deposited into your account each month. This allows you to plan for materials, purchases, and marketing without stressing about the next big expense. Of course, even with subscriptions, you can lose customers. The key takeaway is that happy customers stick around. It’s not rocket science, but retaining customers is often more profitable than you’d think.
2. Customers stay with you longer – and it feels good!
When customers sign up for a subscription, they’re typically prepared to stick around for a good while. And that’s music to our ears! The longer, the better. Once you’ve hooked them, it’s much harder for them to jump ship and switch to a competitor. Why? Because humans are creatures of habit. Once they’re accustomed to your service, it takes a lot to pull them away—unless you suddenly stop delivering the goods. And you won’t, right? Let’s say you’re a cleaning company, and your customers have signed up for a subscription where you clean their homes every week. They don’t have to book you repeatedly, and you don’t have to constantly search for new customers. It’s a win-win! Of course, the level of difficulty in switching providers varies by industry, so take this example with a grain of salt. But there’s no doubt that customers with ongoing renewals hold significant value. It’s worth mentioning here how important it is to keep churn low. Churn refers to the number of customers who cancel their subscription with you. Want to learn more about churn?
3. Multiple services in one package – because customers love a little extra
The subscription model also paves the way for offering a variety of services in one bundled package. Instead of customers paying for just one thing at a time, you can give them a little extra—and who doesn’t love that? Think of it like a gardening company that doesn’t just mow the lawn but also trims the hedges and ensures the flowerbeds look stunning. You get more out of it, and customers receive a well-rounded service, tailored to the subscription level they’re willing to pay for.
4. Automation? Yes please! Alunta helps you manage your subscriptions
Now you might be thinking that a subscription model sounds great, but who’s going to keep track of it all? The answer is: You won’t have to lift a finger. With Alunta, all the administration related to billing is handled for you. Alunta ensures invoices are sent out on time, payments come in, and both you and your customers are kept updated. You can integrate Alunta with e-conomic, so your accounting is also taken care of without you having to do it manually. So, for example, if you run a window-cleaning business where people pay monthly for services, Alunta handles everything. All you need to do is be ready to provide excellent service when your customers need you!
5. Lower costs than new customers – no more expensive marketing
Everyone knows attracting new customers can be an expensive endeavor. Marketing, advertising, networking—it all adds up quickly. But with a subscription model, you don’t need to constantly bring in new customers to keep your business running. We touched on this earlier, but it’s crucial to understand that the value of recurring customers might help you run a healthier business. Existing customers stick around because they’re signed up for an ongoing service. This means you spend less money acquiring new customers and can focus more on keeping your current ones happy and satisfied. Take, for example, a plumber who has an agreement with their clients for regular check-ups on plumbing installations. The customers pay every month, and the plumber doesn’t need to constantly seek out new business. Smart, right? Of course, it’s a balance, as you’ll still want to grow your business with new customers—at least, that’s what I assume!
6. Scale your business without breaking a sweat
One of the really great things about the subscription model is how easily it scales. Once you’ve set up the system, you can handle many more customers without increasing your workload. And this is where Alunta comes into play again. With Alunta, you can easily set up new subscriptions, send invoices, and manage all your customers—no matter how many new ones you bring on board. Let’s say you’re an accountant offering online training on a subscription basis. Whether you have 10 or 1,000 customers, the system runs smoothly. You don’t have to worry about the administration—Alunta handles it for you. You can focus on bringing in more customers, and the system takes care of the rest.
7. Make customers feel special – it pays off
We all know that customers who feel valued are the ones who stick around. When you offer a subscription service, it’s easy to ensure your customers get a little extra. This could be personal contact, tips, offers, or something else entirely. With Alunta, you can send personalized messages or offers to your subscribers, making them feel special and appreciated. For example, if you’re a carpenter offering a subscription service for ongoing maintenance of your customers’ homes, you can easily send a quick message letting them know you’ve spotted something minor that needs fixing. This builds trust and keeps customers loyal to you for the long term. Churn can play a big part of the health of your business. Read our take on it here!
8. Future-proofing your business – subscriptions are here to stay
If you think subscriptions might just be a passing trend, I have to disagree. While there may be an increased focus on which and how many subscriptions businesses and private consumers sign up for, overall, subscriptions are a smart solution for both customers and businesses. Subscriptions are here to stay. It’s not just about securing revenue – it’s about building stronger relationships with customers, offering better service, and ensuring your business thrives in the future. With Alunta as your partner, everything becomes much easier. Whether you’re a tradesperson, roadside assistance provider, personal trainer, or run another type of service, Alunta makes it simple for you to join the subscription movement. Everything is automated, so you can focus on what you do best – and let the system handle the rest.
