You all know the story: The board members of Blockbuster all sat in a room and laughed at Netflix, saying nobody will buy a DVD subscription service. Believe it or not, there are still deniers of the subscription revenue model in other industries, even though the numbers show a different trend. The deniers may be laughing at Blockbuster now, but following the same path as its board members. Is it too late to change course?
In the long term, smaller donations that recur benefit your charity much more than a one-time (larger) donation. What can you do to attract those donations?
It's always better to be at the starting of a trend than behind it, and the salon business model is changing. Salons like Society in LA are looking to increase revenue and brand loyalty by adding the salon service as a subscription.
For centuries, revenue streams have gone something like this: A company sells a product or service. A customer buys that product or service. Money exchanges hands. And that's pretty much it. That's the end of the transaction. Businesses have been doing the same thing over and over again. Now, a new revenue model is taking hold in the software and tech sectors, and it's much more stable and predictable.
The bottom line is simple though: if your churn rate means you are losing customers at the same rate or faster than you recruit new ones, your long-term outlook is somewhere between uncertain and bleak.