Content deleted Content added
simplified |
→Vendors: added citation and removed citation needed tag |
||
Line 44:
==Effects==
===Vendors===
Businesses benefit because they are assured a predictable and constant revenue stream from subscribed individuals for the duration of the subscriber's agreement. Not only does this greatly reduce uncertainty and the riskiness of the enterprise, but it often provides payment in advance (as with magazines, concert tickets), while allowing customers to become greatly attached to using the service and, therefore, more likely to extend by signing an agreement for the next period close to when the current agreement expires.<ref>{{
An integrated [[Software release life cycle|software]] solutions, for example, the subscription pricing structure is designed so that the revenue stream from the recurring subscriptions is considerably greater than the revenue from simple one-time purchases. In some subscription schemes (like magazines), it also increases sales, by not giving subscribers the option to accept or reject any specific issue. This reduces customer acquisition costs, and allows [[personalized marketing]] or [[database marketing]]. However, a requirement of the system is that the business must have in place an accurate, reliable, and timely way to manage and track subscriptions.
| |||