Subscription Billing for Every Industry | Gotransverse

We talk a lot here at Gotransverse about how subscription billing is becoming a common strategy across a wide range of industries. We’ve talked about a few examples, like your basic subscription boxes and your cell phone bill, but now let’s get specific. Here’s a closer look at some of the many industries benefitting from subscription billing models and some of the companies that are leading the way.

Transportation

As consumers, especially in urban areas, embrace the idea of a sharing economy, many are finding it makes more sense to rent vehicles — on a short-term or long-term basis — than to own them. Zipcar and Car2Go are two businesses that facilitate short-term car rentals to help users get around town, often simply supplementing their own cars or expanding the reach of public transportation. ZipCar’s subscription costs about $7 per month, while Car2Go’s is free. In both services, users reserve vehicles on demand and pay hourly or daily rates for each trip.

For longer-term or more consistent rental situations, both car rental companies and dealerships have begun offering subscriptions. Enterprise users pay roughly $1,500 per month for their rentals, including physical damage protection, liability coverage, vehicle maintenance, up to 3,000 miles of use per month, and the ability to swap out cars up to four times per month. Car manufacturers including Audi, BMW, Cadillac, Jaguar Land Rover, Mercedes-Benz, and Volvo also offer subscription options, offering subscribers the use of vehicles from a single brand (or, in the case of Volvo, a single vehicle). The programs offer mutual benefits, getting customers into luxury vehicles without the burden of a car loan or depreciation, and giving the dealer an opportunity to get unsold merchandise off the floor while generating extra revenue.

And cars aren’t the only transportation benefitting from the subscription game. Airlines are getting in on it, too, with Surf Air offering members unlimited flights on its private planes for $2,000 per month, and FlyLine offers travelers wholesale prices on flights from a variety of airlines as part of its low-cost annual subscription. For frequent fliers, either service may provide an opportunity to enhance the experience and lower the cost of air travel.

Fitness, Health and Wellness

Both in-home and app-based fitness brands, along with other health and wellness businesses, have begun using subscription models to build recurring revenue while providing more value for customers looking to improve their health.

Peloton has skyrocketed to popularity in the last year or so, offering a variety of workout classes through its subscription service, which is available to users whether they’ve bought the company’s stationary bike or not. Similarly, while Aaptiv doesn’t have its own branded workout equipment, the company offers more than 2,500 workout classes for all levels and interests, priced at just $15 per month — far less expensive than the average gym membership. Fitbit, once little more than a step-counter, now offers a subscription that functions as a personal trainer, addressing coaching tailored to address common health concerns along with health and wellness reports subscribers can share with their doctors. And, in the mental wellbeing niche, apps like Headspace offer a wide variety of guided meditations. Users can try a few for free and then subscribe for access to the full library.

In a win-win situation, all of these brands have built stable recurring revenue models through their subscriptions (which are often enhanced by add-on purchases) while lowering the barrier of entry to users who may not be inclined to pay for gym memberships or personal trainers.

Education and Professional Development

Time and again, research has shown that an always-learning attitude is beneficial for both businesses and individuals, with employee engagement advantages for companies and benefits to both professional endeavors and long-term mental health for individuals. And several companies are applying the subscription model to these findings, making it easier for users to access instruction in both professional skills and hobbies on their own time, from the comfort of their own homes.

For professional and academic learning, LinkedIn Learning and Lynda.com have teamed up to offer subscribers more than 15,000 expert-led business, tech, and creative courses for just $20 to $30 per month — a huge discount from the tuition you might expect to pay for a certificate program at a university. For a broader range of hobby-type skill development, MasterClass allows subscribers to learn from top practitioners (often celebrities) for $15 per month. Think: cooking with Gordon Ramsay, TV writing with Shonda Rhimes, and tennis with Serena Williams.

Gaming

When users are done learning for the day, the gaming industry is beginning to offer subscription services to help players unwind. While we used to purchase individual games to go with our consoles (or, back in the day, rent them from Blockbuster), now gamers have the option to subscribe to Xbox Game Pass or PlayStation Now to stream a wide variety of games on demand.

These platforms are clearly a hit, with reports claiming Xbox Game Pass boasts 9.5 million subscribers and PlayStation Now’s subscriber count grew 40 percent in just six months last year, from 700 thousand to 1 million. For users, the variety of available games makes gaming more fun and accessible in the long term, and the brands reap the benefits, too, as users are likely to keep paying as long as there are games they haven’t played.

These are just a few concrete examples of the ways businesses in a wide range of industries are leveraging subscription offerings to grow recurring revenue and enhance the customer experience. How might your industry or business benefit from the subscription model? Gotransverse prides itself on helping businesses make the change to more profitable and agile revenue models. We invite you to take a tour of our platform today. And when you’re ready to make the change, give us a call to schedule your complimentary, personalized demo.