Maximizing Your Tebex Store Potential: The Benefits and Strategies of Subscription Revenue Models
Subscription revenue, or recurring revenue, is a business model where a customer pays a regular fee to access a product or service.
What is the Subscription Revenue Model?
Subscription revenue, or recurring revenue, is defined as a business model where a customer pays a regular fee to access a product or service. (For clarity, in our Tebex Ecosystem, it is labeled 'Recurring Payments'.) This model is increasingly popular among most companies as it provides a steady stream of income, rather than relying on one-time purchases. In contrast, non-subscription revenue is generated through one-time transactions or purchases.
Implementing subscription products in your Tebex Game Server Store brings several benefits. Here are a few subscription revenue over non-subscription revenue things to consider:
Predictable income
Subscription revenue is more predictable than non-subscription revenue because it is based on recurring payments from customers. This helps businesses plan their future, forecasts and budget more effectively. This gives them a competitive over similar stores or servers that solely rely on the strenuous efforts that are one-time-purchases.
Customer Loyalty
Subscription models often create a sense of exclusivity and loyalty among customers, as they feel invested in the product or service. This can lead to higher customer retention rates and lower churn. You can even see who your top customers are right on your Tebex Store Dashboard.
Increased Customer Lifetime Value (LTV)
Subscription models allow your store to build a relationship with their customers over a longer period of time, leading to increased customer lifetime value (as in the total amount of money a player will pay while in your server).
Greater Upselling Opportunities
Subscription models provide businesses with the opportunity to upsell additional products or services to their customer base.
What sells as a subscription?
Your store's analytics will show you the most popular products, which will give you a more clear picture of what people consider most important in your store and server. Check to get a clear picture of general interest in your store. As you’re planning the benefits of the subscription, be sure to include something from the top 3-5 most popular products. This will create a broader appeal and sales conversion. The best way to structure these one-time products is to convert them into renewal products month over month.
For example, if you sell a bundle of 500 Gems for people to spend in their server, make this a renewal item, so they receive the 500 again at the beginning of the purchase cycle, etc...
Pricing for Subscription Products
There are many ways to calculate how you should charge for subscriptions. One effective way is to calculate the average cart size, which will tell you the median/average of how much people are normally paying for your products in your store.
Setting up a Subscription In Tebex Checkout is as fast and easy as selecting “Charge a recurring subscription” under the Pricing Box in your Package Setup screen.
Start Your Tebex Store Today!
Don't miss out on the benefits of subscription revenue for your Tebex Store. Start your store now and start reaping the rewards of predictable income, customer loyalty, increased customer lifetime value, and greater upselling opportunities. If you want to learn more, then feel free to contact us.
Visit Tebex.io today to set up your subscription model and take your store to the next level!
