![]() ![]() According to Gartner, “only 20% will succeed in increasing customer retention.” However, with so many companies hopping on the subscription bandwagon, competition is fierce, and some big players are having trouble keeping their customers. ![]() The more money a company is likely to make in perpetuity, the higher its share price.įrom 2012 to 2019, the subscription economy grew more than 300%, and 75% of companies selling directly to consumers said they would offer subscription services by the following year. ![]() Nir’s Note: This article originally appeared in The Harvard Business ReviewĬompanies and investors love subscription business models since they generate recurring revenue that translates to predictable cash flow. ![]()
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