Subscription Models – “The Front-Of-The-Line Subscription Model”
The Front-Of-The-Line Subscription Model is used when selling priority access to a group of customers. For example, if you want a quicker delivery or a faster response via e-mail, you can subscribe to a service plan, that makes sure you are first in line.
Examples of businesses using the Front-Of-The-Line Subscription Model
This model is typically used by any company with customers who are willing to pay more to jump the queue. It’s used by lots of different industries – whether it’s regarding traffic jams, handling deliveries of physical products, in the software industry (online) or the local amusement park offering their visitors to cut the lines at the different rides.
Who should use this kind of subscription model?
This kind of subscription model should be considered by subscription businesses, that
- Have a relatively complex product or service
- Have a customer group that are not exceedingly price sensitive while willing to pay more than the average customer
- Have a customer group for whom waiting in line is a big deal. For example, if you have a customer group that travels a lot, it can have fairly big consequences for them if they can’t cut the line.
What to keep in mind when using this subscription model…
As this model can be used in an extension of other subscription models it’s easy to implement, to add an extra stream of recurring revenue. Some of your customers will have the resources to pay more, but these will probably not be a tangible, specified customer group, as seen when using the Private Club subscription model, requiring the customers to have specific interests in common. You should, therefore, prioritize their needs for not wanting to wait in line, when you market this service.
It’s important that you maintain a good reputation and high-quality service. When using this model, you should have in mind that some of your customers pay more than average. That’s why it’s vital that this exact customer group is prioritized at all times. Lastly, do NOT forget your standard customers. Even though you have customers paying more for a special tier of service, you still have to remember taking care of your ‘regular’ customers as well.