How Recurring Payments Through Subscriptions Drive Business Growth

Subscriptions are flourishing, in line with rising generations of consumers who value accessibility to services over the ownership of things. With those subscriptions come recurring payments, which are popular with merchants and consumers alike. Those payments and the subscriptions to which they are attached can bring a measure of revenue reliability, help moderate customer churn, meet consumers where their desires lie, and increase the lifetime value of a customer relationship. 

But there are downsides, too: Subscriptions are particularly susceptible to chargebacks, they’re easily disintermediated when consumers aren’t engaged with them, and they come with a host of other concerns, including tech requirements and regulatory compliance. This Javelin Strategy & Research report looks at subscription models and the payments that accompany them, highlighting pros and cons and outlining the issues merchants should consider before embarking on a subscription model. 

Key questions discussed in this report:

• What is behind the movement toward recurring-payment revenue models for merchants? 
• How do recurring payments affect merchants’ sales strategies? 
• What are the pros and cons of going with a recurring-payments model?

Companies Mentioned:

Adobe, Amazon, Chargebacks911, Chewy, Experian, Microsoft, Netflix, Rocket Money, Square, Stripe, Zuora