Two external factors that impact a subscriber life cycle
1. The product life cycle:
Example 1: For a subscription aimed at children aged 5 to 12 years, the product life cycle might peak around children aged 10 years old and expires when the child reaches 12 years old. This can be forecast by the business as there are set milestones defined by a fluid timeline.
Example 2: For a pet-related subscription box, the product life cycle expires when the pet passes away. This cannot be predicted by the business.
2. The buying decision process:
The majority of subscriptions sold are not impulse purchases. Purchasing a subscription involves a considered decision making process.
People invest time, resource and emotions in making a commitment. The more complex the decision, the more invested people become and this impacts the subscriber life cycle in a positive manner.
A subscriber’s relationship with the product will fluctuate. As these fluctuations take place, businesses should react accordingly to increase profit and reduce churn.
It is essential that businesses strive for a true relationship with their subscriber base, built on two-way communication, so they can react to feedback and gauge what stage of the cycle a subscriber is in.