What are the key differences between subscription and traditional sales models?
The main difference is in revenue generation. Subscription models provide recurring revenue, while traditional sales are one-time transactions.
What are the advantages of subscription models?
Subscription models offer predictable revenue, customer loyalty, and often lower customer acquisition costs.
Are there any downsides to subscription sales?
Yes, potential downsides include customer churn and the need for continuous value delivery to retain subscribers.
How do businesses decide which model to use?
Businesses consider factors like product type, customer preferences, and market trends when choosing between the two models.
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