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Statistics show that the subscription business model has grown by 435% in the last nine years. By 2022, the global subscription e-commerce market is projected to increase from $72.91 billion to $120.04 billion. Moreover, it is estimated to reach $904.2 billion by 2026. Compared to this year, that means a $784 billion increase. Before the internet, people paid for subscriptions to services like newspapers, oil, and milk delivery. But it has historically been difficult for companies to adopt and implement new subscription business models. Subscription models have faced many challenges for decades, including simply collecting payments. Due to a lack of infrastructure, it was difficult for businesses to collect recurring payments from thousands or even millions of clients.

In the modern world, digital payment platforms such as PayPal and Stripe have enabled recurring payments to be set up and processed without investing massive amounts of the workforce. So now implementing the subscription business model is so easy, but why should business owners do that? There are so many reasons why the subscription model works. Higher sales conversion rate, stable, steady, and predictable revenue stream, more CLTV, less spending on retention marketing, better inventory management, etc. But there is one main reason: Subscription is a powerful business model because it creates an environment where the default customer behavior is retention, as opposed to one where the default behavior is churn. Imagine. You pay a lot to attract a customer, from the costs related to design and tech and support to the cost of marketing and CAC. Finally, you draw a customer and sell the desired product to him. But he uses another website for the next purchase for variety. Ouch. All expenses are wasted. Black Friday and Cyber Monday are coming in about a month. A market of about 10 billion dollars. You experience more traffic daily On average, something like a 90% increase in traffic compared to regular days. At the same time, you are not facing normal users. Users are 130% more willing to buy than usual. So it is better not to lose this number of users and this number of buyers, and they do not buy from you just once. Setting up a subscription for products with this potential can be the leading solution to this issue and turn your Black Friday customers into permanent fans. As a solution for those who have a Shopify store, we at Hengam have created a subscription app with 3 main features. 1. The simplicity of working with the app 2. The presence of experienced customer success managers 3. 24-hour and compelling support Let us know what you think of our app and how we can make it a better resource by looking at it.