DEFINITIONS
What does subscription mean?
A payment to receive a product or service regularly.
Name one common subscription service people use.
Streaming services like Netflix or Spotify.
Why do many companies prefer subscription models?
They provide regular and predictable income.
What does value mean in subscription services?
The benefit customers feel they receive.
What is subscription overload?
A situation where consumers have too many subscriptions.
Give an example of subscription overload in daily life.
Paying for several streaming platforms but using only one.
Why do customers often cancel subscriptions?
They don’t see enough value or use the service.
Why are flexible plans important?
They reduce cancellations.
What does churn describe in subscription businesses?
When customers cancel their subscriptions.
What is an example of high churn?
Many users cancel after a free trial.
Why is the subscription market very competitive today?
Many companies offer similar services.
How does engagement help subscription companies?
Engaged users are more likely to stay subscribed.
What is customer retention?
The ability of a company to keep customers over time.
Give an example of personalisation in subscriptions.
A platform recommending content based on your preferences.
What happens if customers feel overwhelmed by subscriptions?
They cancel unnecessary services.
Name two strategies companies use to stand out.
Personalisation and flexible pricing.
What does it mean when a market is saturated?
There are too many similar products and strong competition.
Give an example of how a company can differentiate itself.
Offering flexible plans or unique features.
Why is retention more important than attracting new customers?
Keeping customers is cheaper than finding new ones.
Why is clear communication important in subscriptions?
It builds trust and reduces churn.