How the Subscription Economy Will Change the Price We Pay
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Should a customer in New York pay a higher price than someone from Ohio for the same service? And should a doctor in Ohio pay a higher price than a New York taxi driver? Should a Mac user be steered to a pricier hotel when shopping online? Hint: It’s already happening.
A growing number of companies have already shifted to a subscription model, where customers pay a monthly fee. Now, more firms are experimenting with charging customers different prices and using alternate pricing plans, based on data and analytics that can maximize revenues and customer satisfaction.
American consumers increasingly use subscriptions for things once bought one transaction at a time, such as watching movies on Netflix or paying one annual fee to Amazon for all their shipping costs. Subscriptions are in vogue for everything from buying razors (Harry’s or Dollar Shaving Club) to buying underwear (MeUndies) to beauty products (Birchbox).
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