Business Reporter: From free to fee—how to build a brand worth subscribing to
This is an excerpt from an article I wrote for Business Reporter.
Imagine a revenue stream that keeps flowing month after month, building deeper connections with your customers. Sounds tempting, right? But transitioning to a subscription model isn’t as simple as flipping a switch. It requires building brand trust and loyalty beyond just your product.
Even industry leaders like Native Instruments, well-known to musicians, struggle to secure subscription loyalty. Its recent rebrand emphasizes innovation and creativity, setting the stage for a new software subscription aimed at attracting budding beat-makers. Despite taking seemingly all the right steps, this technology company faces common challenges in building a dedicated subscriber base.
Unlike other industries, the entertainment sector thrives on subscriptions. Streaming services like Netflix, Prime Video, and Disney+ boast loyal subscribers willing to pay more. Why? Their secret lies in a potent mix of strong brand love, personalized flexibility, and strategic pricing power. Even with reported increases in subscriber losses, top streamers are achieving 6% churn compared to the 13% average for SaaS and a staggering 25% in financial institutions.
Here are five key branding strategies for subscription success gleaned from the streaming playbook:
1. Masterbrand health: build on a strong foundation
2. Subscription superpower: design a distinct sub-brand
3. Beyond one-size-fits-all: embrace customisation and flexibility
4. Surprise and engage: the emotional power of subscription branding
5. Branding isn’t just an aesthetic: build pricing power brick by brick