Subscriptions create customer stickiness
Subscriptions create customer stickiness
A well-designed subscription service makes customers "sticky," meaning they are less likely to switch to a competitor, even when presented with a better price or a special offer. This loyalty is not necessarily born from deep emotional attachment, but from the powerful force of convenience and inertia.
Once a customer subscribes to a service that solves a recurring need, they effectively "set it and forget it." The convenience of having a product or service delivered automatically removes the need to actively think about that purchase decision again.
Consider a customer who subscribes to a dog food delivery service:
- Before Subscription: They are constantly aware of their supply of dog food and are open to buying it from any store that offers a good deal. Their loyalty is low.
- After Subscription: The task is handled. The part of their brain that used to scan for dog food deals effectively "shuts down." The convenience of the automatic shipment outweighs the potential savings from hunting for a bargain.
This creates a significant competitive advantage. The subscriber knowingly enters into an exchange: their future loyalty for the convenience of an uninterrupted, automatic service. This is a core mechanism by which subscription models create automatic customers and reduces customer churn.