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SUBSCRIPTIONECONOMY
DISRUPTING THE TRADITIONAL BUSINESS MODEL
2
IULIANPĂDURARIU
“It’s about a move 

from ownership to ACCESS, 

from transactional to RELATIONAL.”
Robbie	Kellman	Baxter,	author	of	The	Membership	Economy
In a post-recession, tech-driven world,
companies find a way to play into our need to
save time and money
In many cases, a subscription is cheaper than
buying a product outright and more
customizable to our wants and needs
WHATECONOMISTSSAY:
Due to the ever-increasing availability of products,
the need for instant gratification is growing.
Consumers are now accustomed to receive instant
access to a product or service they require, such as
countless songs through online streaming services.
The actual interaction with the product or service
activates the reward system in the brain controlled
by the neurotransmitter, dopamine.
WHATPSYCHOLOGISTSSAY:
SUBSCRIPTIONS
7
• eliminate large upfront costs
• enable consumers to try or experiment a
wide array of products and services
• save time to customers
• eliminate friction on repeat business
KEYFINDINGS
ZUORA STUDY IN UK
8
ANATIONOFSUBSCRIBERS
• Four in five people across the UK
have at least one subscription
service.
• Subscriptions are increasingly
popular in other aspects of
consumer life, including gaming,
dining, transportation and retail
80%
AMILLENNIALSHIFT
• 76% of younger consumers
(16-24) have subscriptions,
• a significant importance on the
convenience of not having to
regularly buy products
• have instant access to what they
need.
76%
EXPERIENCESOVEROWNERSHIP
it’s important that they can upgrade and
renew the products they use
it’s important to gain instant access to
the things they want
it’s important to discover new things
based on my personal preferences
63%
62%
64%
BARRIERSTO
ADOPTION
NEGATIVECONSUMERPERCEPTIONS
concerned about potential difficulties
when trying to unsubscribe
fear increases in price or changes in the
products or services offered
don’t like being limited to certain
products within the subscription
47%
35%
47%
TRENDS
UNIQUESERVICESTHATPEOPLEWOULDSUBSCRIBETO
CONCLUSIONS
We are shifting into a considerably more
modular and granular society.
Fluidity is a key factor in people’s choices and
beyond subscription models, you should always
be thinking about how your company complies
with new consumer mindsets.
CONCLUSIONS
In the old world (let’s call it the Product Economy) it was
all about things. Acquiring new customers, shipping
commodities, billing for one-time transactions.
But in this new era, it’s all about relationships. 

More and more customers are becoming
subscribers because subscription experiences built
around services meet consumers’ needs better than
the static offerings or a single product.
THANKYOU!

IULIANPADURARIU
18

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2016 Subscription Economy @Meet Magento Ro

  • 3.
  • 4. “It’s about a move 
 from ownership to ACCESS, 
 from transactional to RELATIONAL.” Robbie Kellman Baxter, author of The Membership Economy
  • 5. In a post-recession, tech-driven world, companies find a way to play into our need to save time and money In many cases, a subscription is cheaper than buying a product outright and more customizable to our wants and needs WHATECONOMISTSSAY:
  • 6. Due to the ever-increasing availability of products, the need for instant gratification is growing. Consumers are now accustomed to receive instant access to a product or service they require, such as countless songs through online streaming services. The actual interaction with the product or service activates the reward system in the brain controlled by the neurotransmitter, dopamine. WHATPSYCHOLOGISTSSAY:
  • 7. SUBSCRIPTIONS 7 • eliminate large upfront costs • enable consumers to try or experiment a wide array of products and services • save time to customers • eliminate friction on repeat business
  • 9. ANATIONOFSUBSCRIBERS • Four in five people across the UK have at least one subscription service. • Subscriptions are increasingly popular in other aspects of consumer life, including gaming, dining, transportation and retail 80%
  • 10. AMILLENNIALSHIFT • 76% of younger consumers (16-24) have subscriptions, • a significant importance on the convenience of not having to regularly buy products • have instant access to what they need. 76%
  • 11. EXPERIENCESOVEROWNERSHIP it’s important that they can upgrade and renew the products they use it’s important to gain instant access to the things they want it’s important to discover new things based on my personal preferences 63% 62% 64%
  • 13. NEGATIVECONSUMERPERCEPTIONS concerned about potential difficulties when trying to unsubscribe fear increases in price or changes in the products or services offered don’t like being limited to certain products within the subscription 47% 35% 47%
  • 16. CONCLUSIONS We are shifting into a considerably more modular and granular society. Fluidity is a key factor in people’s choices and beyond subscription models, you should always be thinking about how your company complies with new consumer mindsets.
  • 17. CONCLUSIONS In the old world (let’s call it the Product Economy) it was all about things. Acquiring new customers, shipping commodities, billing for one-time transactions. But in this new era, it’s all about relationships. 
 More and more customers are becoming subscribers because subscription experiences built around services meet consumers’ needs better than the static offerings or a single product.