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How the Subscription Business Model Is Shaping the Future

  • Paul Chambers - SUBTA CEO & Co-Founder
  • Aug 10, 2021
  • 4 minute read

Subscriptions are outpacing e-commerce and retail, growing 12% during 2020 while retail companies saw sales shrink by an average of 10%. So how might you enter this rapidly growing market?

At SUBTA, we have a vision to break down barriers, both for businesses and consumers to enter the subscription economy. In order to become an active part of the future of the industry, subscription business owners need to think long-term.

Read on to see how subscription business models are shaping the future and learn how you can drive your business to thrive in this rapidly growing market.

Make Way for Subcom

Retail and e-commerce are no longer the only sales models in town. Subcom, or subscription commerce, is shaping the future of e-commerce and the way online transactions take place with consumers by helping brands build better relationships with them

The subscription business model is entering many areas of our lives from health and wellness to clothing, food, entertainment, and more. Because there are so many options for consumers to choose from, subcom businesses need to understand what their consumers are looking for.

A great example of a subcom company that focuses on relationship building is the record subscription company Vinyl Me, Please (VMP). VMP creates an experience that makes consumers feel like they are a part of a community by providing access to prints, exclusive drops, access to artists, and limited-edition products. 

VMP is reshaping the future by thinking both inside and outside of the (subscription) box. It brought back the age-old, real-life record store with a modern twist by creating a community and fostering relationships with consumers, ultimately drawing raving fans behind its brand and developing brand loyalty.

The subscription business model is becoming more than a recurring transaction. It is building communities and bringing together groups of like-minded people who share a passion for the same hobbies and interests.

How to Maximize a Subscription Business Model 

Creating a successful subcom business that shapes your company’s future is more than just finding the right niche, the right product, and the right audience. It’s about finding something that you truly care about, allowing you to set out with the best intentions for your consumers. 

It’s important to foster relationships and really understand the market audience by talking to your target audience and building products around their needs and desires. You can even study your customers’ shopping habits to better understand their behaviors, then use that information to develop an optimal consumer experience.

Don’t focus on preventing a consumer from cancelling. Instead, focus on giving your subscriber a reason to stay. These are two very different priorities that can make the difference between a successful subcom business and a not-so-successful one.

Take subcom company Megababe as an example. Founder Katie Sturino took a subject that she cares about and not only created a product to solve the need, but opened up a space for shame-free conversations about tough-to-tackle subjects, like body odor and boob sweat.

Megababe also takes advantage of its social space by asking questions to its social media community and floating product ideas. You can use tools like Google Trends and social communities like Instagram and Clubhouse to get consumer feedback, create a community, and understand what your audience wants.

The Future Is the Human Side of Subcom

We talk a lot about how to run a successful subcom business, but remember that failure is a stop along the way to success. Certain aspects of your subscription business will be more difficult to deal with than others. Learn from those moments and push through them to attain your goals.

Sometimes, even for successful companies like VMP and Megababe, a product flops. That’s okay, as long as you’re able to understand why. These brands are able to use data and past experiences to optimize future products and better strategize their ultimate subscription business models.

There may also be distractions along the path to success. These include revenue goals, profit margins, data analytics, and key performance indicators (KPIs) to meet—all important things, but easy to get lost in. If you have a well-crafted mission and vision that you stick to, the rest will follow.



Underwear subscription hit BootayBag is a great example of a company that spent many years building its product line and subscription business model with many bumps along the way. But throughout its trajectory, BootayBag stayed true to its mission and ultimately landed a $500,000 deal on SharkTank

Shaping the Future With Your Subcom Business

Approach your subscription business model by prioritizing relationships and you’ll benefit both your customers and your business. 

If you would like to learn more about how to shape the future with your subscription business model, attend SubSummit on September 21-23, 2021. 

We are bringing together some of the brightest minds in the subscription industry to share what they have done to generate success. Tien Tzuo of Zuora will be sharing his vision on the future of the subscription economy and we will be hosting discussions to support you in your journey to success.

Click Here to Register

Want to learn more subscription tips to help scale your business? Join SUBTA. We’re a community of doers, excited to share insights, make connections and grow your subscription brand.