Subscription model

Do you know Panera, a restaurant chain in the US? They recently offered a $8.99 coffee monthly subscription. Customers can take unlimited coffee under this offer.

They decided to offer this program after a few months of testing. They saw more than 200% increase in the frequency of visit, which is expected. The best part is there have been about 70% increase in food attachment. It’s like they use marketing money in this subscription offer to sell their core product which is food.

Can you add a subscription model to your product or part of your service? If you can and want to, I suggest you to build a strong financial model to justify it. A wrong calculation could cause a major issue.

Apivut

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s