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It is well known that offering a subscription model is not optional anymore. In fact, it’s becoming obligatory if you want to meet customers’ expectations. The subscription model helps in building long-term relationships with clients and can be a key way to recognize customers’ needs. 

A sale is a one-time operation. Because of that, it gives the seller a limited opportunity to gain trust and generate positive emotions in a customer. It is not tough to lose such a client very quickly. Exists a huge possibility that a customer like this will choose another brand on the next occasion. If you won’t try to build a bond with customers, they will be less likely to come back to you. In this case, they probably will make decisions based only on a price of a product or service.

Although subscription is present in everyone’s daily life – according to the report prepared by Deloitte about 30% of Polish people are not aware of using a subscription model. It is caused by the fact that understanding subscription is a relatively new phenomenon. The concept of box diets and streaming services such as Spotify, Netflix, or Disney+ are well-known among people. Singing up for receiving a product or service every month makes us a user of a subscription model. 

It is necessary to reach out more broadly and understand that subscriptions can be applied in many diverse areas. In WeSub we offer subscriptions to services like accounting and diverse products. Starting with beauty salon equipment and ending with mobile phones, laptops, and tablets. What is more, we have created an offer that allows a subscription to light! This solution allows the modernization of lighting without any costs.

We are sure that no matter in which area your business operates, there will be a place for a subscription.  

Why is it a good idea to add a subscription model to your offer as soon as possible?   

Firstly, let’s mention the benefits that it directly brings to your company. It is key to building a strong relationship with your client and helps in taking care of customers during the subscription period. In case of any issues with products or services, you can be sure that customers will contact you to get the needed help. It is owned by the subscription’s comprehensiveness, which may include additional service and insurance packages. Furthermore, it gives freedom in selecting subsequent devices based on one simple contract and invoice.   

However, by making your products available in the subscription formula, you gain a predictable, constant income, which you have a real impact on by selling additional packages, services, or parts. The standard subscription contract lasts 12 months. Meanwhile, our experience shows that over 80% of customers extend the contract. They do it on the existing terms or exchange the product for another, either generate profits again. 

Customers are also getting more aware of their environmental responsibility. More often, the pro-ecological approach of the company can be the reason to use their services, not the competition’s. Subscription can help you grow your business in accordance to the circular economy. It helps to use the device’s potential to the maximum, extending its life cycle by 2 to 3 times. Guaranteeing the reuse of the device several times, followed by proper disposal or recycling, will enable a transparent item management standard.

Check out where we have already implemented subscriptions!

As we have already stepped into 2023 it is time to look at some market reports from the last quarter of 2022. 

According to information provided by IDC, global PCD shipments totaled 67.2 million units in the fourth quarter of 2022. This is a decrease by as much as 28.1% compared to 2021. This is the lowest number since the fourth quarter of 2018. However, it was due to the constraint of Intel’s supply problem last time.

The sudden drop is related to the pandemic trend when the sales of computers increased significantly because the whole world switched to the remote work model and stopped thinking about the workplace as one particular space. In addition, people were looking for new activities to pick up at home that often required better equipment than they already had. A huge part of potential customers satisfied their needs in this field and aren’t currently thinking about any further changes.

Therefore, the sales results of the big five, which include Lenovo, HP Inc, Dell Technologies, Apple, and ASUS, are no better. Only Apple came out unscathed and increased its sales by 2.5%. The largest decrease -25.3%, was recorded by Dell.

The global economy is slowing down and in the face of the current crisis, consumers don’t feel the need to replace their current equipment with newer ones. Without additional expenses, it is difficult for us to accumulate savings, as indicated by reports from many global markets. According to data collected by the Bureau of Economic Analysis, Americans in 2022 collected only 2.3% of their income, which is the lowest rate since 2005. So, it is difficult to decide whether further liabilities will tie us to the device to be repaid for the upcoming years or will involve paying large amounts of money at once.

Adding subscription models may be a good compromise. By providing PC’s in this formula, we allow customers to pay only for the use of the equipment they need – whenever they need it. For example, the Subscription Agreement in WeSub lasts 12 months – which is exactly how often most manufacturers release newer models of their devices. A subscription allows clients to stay up to date and use various devices, knowing that they will come back to us in a year. The statistics collected by our company show that over 80% of Subscription Agreements end with replacing equipment for a newer one or extending the contract for another 12 months. 

Changing the approach from transactional to relational, i.e., providing laptops as a service, allows us to establish a relationship with the client and show him that we care about his needs and that we are not only interested in growing sales charts. During the subscription period, we gain the opportunity to offer additional packages, services, or extended warranties. It is a great option to improve our sales with additional income. 

Manufacturers outdo each other in creating technologies or creative marketing campaigns that will help them attract the customer’s attention and encourage them to take advantage of their offer. However, competition in the IT market is becoming so high that it is no longer enough. Entrepreneurs need to look at each transaction much more broadly and build trust, comfort, and attachment. More and more often we hear the statement that we should not sell just the product, but the emotions and experiences associated with it. This is how you create offers that respond to the real customer’s needs.

A subscription is a simple tool that connects us in the long term with the acquired client and allows us to react to any changes in their needs on an ongoing basis and build a reliable and easy-to-predict long-term income for the company.

„Zdecydowaliśmy się na współpracę z WeSub, bo chcemy oferować naszym franczyzodawcom jak najkorzystniejsze rozwiązania. Szukaliśmy więc narzędzi, które sprawią, że franczyza NewCafe będzie jeszcze bardziej dostępna i opłacalna. Takim narzędziem jest właśnie subskrypcja. My dajemy know-how oraz wsparcie w doborze urządzeń czy produktów a WeSub finansuje urządzenia niezbędne do prowadzenia NewCafe. Prosty i Łatwy system franczyzowy połączony z szybkim i klarownym finansowaniem, które mogą pozyskać nawet świeżo założone działalności. Bez żadnych opłat wstępnych i przytłaczających formalności. 

W końcu na franczyzę nie trzeba się zadłużać ani wiązać się ze sprzętem na stałe. Dzięki temu, możemy elastycznie dopasowywać naszą franczyzę do aktualnych potrzeb. NewCafe w formule subskrypcji to koszt jedynie 60 zł dziennie! Franczyzobiorca zarabia więc już od 1 dnia prowadzenia działalności. Cieszymy się, że udało nam się wspólnie z WeSub połączyć siły i stworzyć innowacyjne rozwiązanie, które dopasowuje się do klienta i nieustannie zmieniającego się rynku.”

Jacek Czauderna Prezes/Właściciel hellocoffe oraz twórca franczyzy NewCafe

Zobacz więcej:  https://www.cafitesse.pl/newcafe 

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Subscription revenues create stable and predictable levels of revenues with no selling costs, thus increasing their value. ” So why don’t you offer your products as a subscription yet?

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The Tesla Full Self Driving Package is now available in a subscription model at a monthly fee of $ 199. It gives you access to driving assistance functions, including access to autopilot or automatic lane change. Previously, these features were available for a one-time purchase of $ 10,000.

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British startup Raylo raised $ 11.5 million in funding for development and further expansion. Investors see potential in offering new or refurbished smartphones in a subscription model.

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The pandemic is a difficult time for many entrepreneurs. Where to find money to start, maintain or develop your business? Where to look for support? We invite you to read the article on this topic in Gazeta Wyborcza.

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Read the interview with WeSub CEO Mariusz Szałagan about new ways of technology financing for companies.

 

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