How can you design products to thrive in the subscription economy?

1 Understand your customer segments

One of the key aspects of designing for the subscription economy is to understand your customer segments and their needs, preferences, and behaviors. Different segments may have different motivations, expectations, and pain points when it comes to subscribing to your product or service. For example, some customers may be looking for convenience, others for customization, and others for community. By segmenting your customers and creating personas, you can tailor your product design to meet their specific needs and goals, and create a more personalized and relevant experience.

2 Create a compelling value proposition

Another important aspect of designing for the subscription economy is to create a compelling value proposition that clearly communicates the benefits and outcomes of your product or service, and how it differs from the alternatives. A value proposition is not just a catchy slogan or a list of features, but a statement that explains why your product or service is worth paying for on a regular basis, and how it solves a real problem or fulfills a real desire for your customers. A good value proposition should be simple, specific, and credible, and should address the customer's main challenges and aspirations.

3 Design for onboarding and activation

The first impression of your product or service is crucial for the subscription economy, as it can determine whether your customers will stick with you or churn. Therefore, you need to design for onboarding and activation, which are the processes of introducing your customers to your product or service, and helping them achieve their first value or success. Onboarding and activation should be smooth, intuitive, and engaging, and should guide your customers through the essential steps and features of your product or service, and show them how to achieve their desired outcomes. You can use various techniques, such as tutorials, walkthroughs, tips, feedback, incentives, and gamification, to make onboarding and activation more effective and enjoyable.

4 Design for engagement and retention

Once your customers are onboarded and activated, you need to design for engagement and retention, which are the processes of keeping your customers interested, satisfied, and loyal to your product or service over time. Engagement and retention are vital for the subscription economy, as they can increase your customer lifetime value, reduce your churn rate, and generate positive word-of-mouth. To design for engagement and retention, you need to provide continuous value, feedback, and support to your customers, and create opportunities for them to interact with your product or service, and with other customers. You can use various techniques, such as notifications, reminders, recommendations, rewards, loyalty programs, social features, and community building, to make engagement and retention more effective and enjoyable.