Behavioral Trends: The Era of Subscription


The Era of Subscription


We are willing to make a continuous commitment with your brand or services if you give us added value in exchange. When we subscribe to a service, we feel more compelled to use it routinely when it facilitates and satisfies our needs and desires, one click away.


Loot Crate defines itself as epic bounty for nerds and geeks – in other words, it provides all kinds of merchandise from popular media, ranging from sci-fi to fantasy and everything in between. Once a month, users will receive their crate with valuable items – worth at least double what Loot Crate charges. An attractive offer for diehard entertainment fans.

The Era of Subscription - Loot Crate


Stitch Fix is a subscription-based personal styling service, which selects 5 pieces of clothing based on the user’s preferences and sends them to their doorstep. Users try the clothes on and only pay for those they like. The service learns from users’ rejected ítems to consistently improve and fine-tune the selection that is sent each month. In an age of instant gratification and hectic schedules, services like Stitch Fix are essential for users who simply don’t have time for the unessential.

The Era of Subscription - Stitch Fix


The entertainment industry has completely evolved its traditional formats and business models taking advantage of new paradigms and technologies. Netflix started in 1997 as a DVD rental service. While Blockbuster, the category leader back then, charged you for every single rent (and penalty you for every day of delay in the return), Netflix started as a subscription “all you can see” model. For a fixed monthly amount, you had always a fixed number of DVDs in your hand, for all the time you wanted. That model made it easy for them to abandon the DVD arena and enter a full digital platform, we all gladly accepted.

The Era of Subscription - Netflix


Spotify’s “all you can hear” business model has revolutionized the music industry. Their FREEMIUM business model allows you to listen all the music you want, interrupted by advertising (as any traditional media) or you can actually subscribe and, for a monthly fee, listen to all that music without interruptions.

The Era of Subscription - Spotify


In times of the commoditization of everything, you may expect that any razor will work reasonably fine. This is a recurring purchase, so subscribing to a home-delivery service makes all the sense in the world. With this club, for only one dollar per month you receive good razors direct to your door, hassle-free and smart.

The Era of Subscription - Dollar Shave Club


There was a time when loyalty programs took off and made sense. Giving you miles for free with every purchase was a differentiator for a few airlines that started that model. But when EVERY airline gives you miles, and you may actually use your miles with many other airlines, giving them for free doesn’t make that much sense. Instead, some airlines are starting to charge you for your loyalty. Volaris V.CLUB charges you an annual fee (around USD$ 25) for your subscription. It gives you in exchange very low prices and other benefits. The psychological result is easy to see: once you paid them, they are your first option whenever you are looking for your next flight (because you’re paying for it!). Loyalty is not bought nowadays, it is sold.

The Era of Subscription - Volaris V Club


Click here to navigate our list of Behavioral Trends for value creation, full of insights and needstates, written from a post-demographic human-centered perspective by our partner Andrea Lobo.


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