Ep. 414 - Trent365! - Re-thinking Subscription Revenue Models
Today. Episode four hundred and fourteen of trend three sixty five why it might be time to rethink your subscription revenue model. Have been the go-to revenue model for a number of businesses. Buy products and services for many years now, and one of the features of that is that oftentimes you get a free trial up front, which you will in automatic may be charged for your subscription after that free trial period and another feature, of course, is that you are getting charged automatically every month or every year, depending on which model you choose whether you really agree to it or not unless you cancel out beforehand, unless you cancel before the next payments, so sensually it's been opt out and less you you'll in unless you opt out and that works great for number of businesses because night out number of consumers of ended up paying for more than probably what they wanted to are intended to may because they missed the free trial off or will they missed the cat over the next payment cycle. But what MasterCard has done now said that they don't allow that anymore. If emergent wants to charge a customs credit card every time they want to charge that credit card again, they're gonna have to get separate and unique approval each time. And I think what's going to happen. Obviously, the other credit cards and payment providers will probably follow suit. So in short, it's going to get much tougher on those subscription revenue models that maybe not continue to provide value and service beyond that initial period because I think in number of times people get sucked into subscription models, and they just on canceling because I never get around to it. And I personally I can attest that I can't count think about the number of times that I've signed up something ended up paying for an extra month or an extra year. Even sometimes that I didn't want to discuss I kind of forgot cancel and I think masters probably doing it because they getting stuck with customer complaints, probably rebates and all that stuff. But I think the good news for the consumer is that it's going to help them the bad news for the merchants for you. Run your business, if you're relying on subscriptions, you better. Make sure you're providing continual value throughout the journey, and if not you better make sure you stop talking to your customers to find out. Why already that's thanks for tuning. And I will be back again tomorrow. So you. My.