Subscription-Based Business Models Key facts and information

Subscription-based businesses From Spotify to Netflix, the rise of subscription-based businesses is having a real impact on how consumers buy and use products. Instead of making one-off purchases, people are now subscribing to services, renting products, and making recurring payments. This shift in consumer behaviour is changing the priorities for many businesses…. Simply selling units of a product or service is no longer enough. Building lasting relations with customers is now vital.

Subscription-based innovation Some of the most innovative new business ideas are using subscription-based models: King of Shaves – shaving packs Glossybox - cosmetics Kopi Coffee Club - beverages Shirtsmart – bespoke clothing Graze – healthy snacks Zipcar – vehicles Even ‘Boris Bikes’ fit into the subscription-based business model…

Reacting to the shift in consumer behaviour… “80% of businesses (US, UK and Australian) have seen changes in how customers access their services. As a result, over half (51%) are considering new business models including subscription pricing. Of those, subscription-based models have emerged as the primary means to do so, with 40% of these companies implementing subscription services as part of their core business.”* *2013 survey of US, UK and Australian businesses conducted by the Economist Intelligence Unit

Subscription-based benefits Becoming a subscription-based business offers some major benefits. Here are a few to consider: New revenue opportunities Improved cash flow Competitive point of difference Increased customer loyalty More accurate stock control

4 subscription model ideas Could customers subscribe to your business? 4 ideas to consider: Sell yourself - Give your customers the benefit of your expertise and passion. Send them products that you’re most excited about. Sample yourself - Package up samples of your products, giving your customers the chance to try before they buy. Sell your library – Offer access to your content library for a monthly fee. Specialist publications, video guides etc. Sell your services – Maintain and monitor the software or hardware that your clients use, including upgrades and repairs.

4 subscription implementation tips Consider the time to market – your idea should get you to market in weeks or months (rather than years). Be adaptable - your model should be able to adapt to new trends and shifts in customer behaviour. Give yourself room – ensure that your model gives you the ability to upscale your customers and grow your business. Minimise risk – make sure your commerce and payment solution is fully compliant and regulated.

AccessWallet for subscription-based businesses AccessWallet is a fully secure, cloud-based online payment solution. We make it quick and easy for businesses to collect recurring payments from their customers. Why choose AccessWallet for your subscription-based business? Low transaction fees No set up costs No monthly or hidden costs 100% cloud-based Quick and easy set-up Mobile access Bank-grade security Seamless integration Advanced customer notification

Any Questions? AccessWallet CEC Winchester - Crawford Place, Old Marylebone Rd, London NW1 5RA Tel: +44 (0) Website: Regulated by the Financial Conduct Authority (FCA).