Subscriptions Are Always a Win-Win??
The subscription economy is often portrayed as the ultimate win-win: businesses get predictable revenue, and consumers get seamless access to products and services. However, let’s be honest—this isn’t always the case. In reality, many subscription models are intentionally designed to maximize retention at the consumer’s expense. For instance, from hidden fees to impossible cancellation policies, the line between convenience and exploitation is getting thinner by the day.
Consumers Love Subscriptions….(not always)
The truth? Consumers tolerate subscriptions when the value outweighs the cost. The moment they feel tricked or locked in, resentment builds. The rise of subscription fatigue—where people feel overwhelmed by the sheer number of recurring payments—proves that businesses can’t just rely on auto-renewals to keep customers happy.
Advice for Businesses: How to Not Be the Bad Guy in This Love-Hate Relationship
Ah, the subscription economy. It’s not only a golden goose for businesses but also a growing frustration for consumers. So, how do you offer convenience without making customers feel trapped? Let’s take a closer look at what works and what doesn’t.
1. Subscription pricing: How much is too much…
Sure, you could charge $20/month for a service that’s worth $5, but don’t act surprised when customers cancel faster than a free trial reminder email.
✅ What to Do:
- Price your subscription based on real value, not just what you think people will pay.
- Offer tiered pricing so customers can choose what works for them (but don’t make the basic tier useless just to force an upgrade).
🔍 Example: Spotify nails this. Their free tier is usable, and their premium tier feels like a steal. Meanwhile, some SaaS tools charge $50/month for features no one asked for. Don’t be that guy.
2. Transparency is Sexy (Seriously)
Nothing screams “trap” more than hidden fees, sneaky auto-renewals, and, worst of all, a cancellation process that feels like a psychological endurance test.
✅ What to Do:
- Be upfront about pricing, renewals, and cancellation policies.
- Make canceling easy. Yes, easy. Forcing customers to jump through hoops only builds resentment.
🔍 Example: Netflix makes it painless to cancel, and guess what? People come back because they want to. Meanwhile, Adobe’s cancellation process feels like an IQ test you weren’t prepared for.
3. Fight Subscription Fatigue with Value
Customers are drowning in monthly payments. If your service doesn’t feel worth it, you’re the first to go.
✅ What to Do:
- Regularly assess whether your subscription is delivering enough value.
- Surprise and delight your customers with bonuses, exclusive content, or early access to new features.
🔍 Example: Apple One bundles multiple services into one subscription, making it feel like a deal rather than a burden. Meanwhile, some apps charge $10/month for something a free Google search could replace. Don’t be that app.
4. Don’t Abuse the Free Trial
Free trials should build trust, not trap customers. If your free trial is just a bait-and-switch, you’re not building loyalty—you’re building resentment.
✅ What to Do:
- Let customers experience the full value of your service during the free trial.
- Send reminders before the trial ends. Nobody likes unexpected charges.
🔍 Example: Hulu does this well. Their free trial is clear, and they send reminders before charging. Meanwhile, some fitness apps auto-renew into a $200 annual plan with zero warning. Don’t be that fitness app.
5. Listen to Your Customers (Yes, Really)
Ignoring customer feedback is like ignoring a “Check Engine” light—it won’t end well.
✅ What to Do:
- Regularly survey customers about what they love, what frustrates them, and what would make them stay.
- Use feedback to improve pricing, features, and service.
🔍 Example: Slack constantly evolves based on user feedback, keeping customers engaged despite cheaper alternatives. Meanwhile, some companies ignore complaints until customers leave in droves. Don’t be that company.
6. Be Honest About Your Intentions
Subscriptions create predictable revenue, but if customers feel like walking ATMs, they’ll walk away.
✅ What to Do:
- Focus on long-term relationships, not short-term profits.
- Be transparent about why your service is subscription-based.
🔍 Example: Patagonia’s clothing subscription is a win-win: customers get sustainable fashion, and Patagonia gets recurring revenue. Meanwhile, some companies slap a subscription on anything just because they can. Don’t be that company.
The Verdict: Be the Hero, Not the Villain
The subscription economy isn’t going anywhere, but how you approach it will determine whether your business is loved or loathed. Be transparent, deliver real value, and treat customers like people—not credit cards.
Because at the end of the day, the best subscription model isn’t one that traps customers—it’s one that makes them want to stay.
Final Thought:
Dear businesses, the subscription economy is powerful, but with great power comes great responsibility. Use it wisely, and you’ll build loyalty. Abuse it, and you’ll build resentment. And trust me, you don’t want to be the villain in this story.
