The Peace of Mind Subscription Model

Subscription Models – “The Peace of Mind Model”

The Peace of Mind Subscription Model offers insurance premium to something your customers hope they will never experience. With this model, your business can provide a ‘peace of mind’ as your customers know they have signed up for being ‘covered’ in case of an unexpected event.  
Examples of businesses using the Peace of Mind Model
Companies using this model will usually be insurance companies or businesses that provide some kind of warranty program. Your customers will typically pay a small amount each month for ‘the peace of mind’ to cover the cases of something unexpected to happen. This is the case when you buy an insurance. Whether regarding feeling safe traveling, in case your bike got stolen or if the roof of your house starts leaking. Businesses will sell the serenity of customers knowing they’re covered and not having to pay a large amount of money if something should happen – therefore to feel “safe” they pay a monthly payment.  
Who should use this kind of subscription model?
Recognized by this kind of subscription businesses that…
  • have the capacity to handle the problem if unexpected events or experiences should happen to your customer’s
  • possess the resources to handle customer service while knowing the industry you operate in. You should be able to predict the likelihood and frequency of a claim
 
What to keep in mind when using this subscription model?
When using the Peace of Mind Subscription Model you need to ensure that you have the infrastructure and resources to honor the commitment if your subscribers should experience something unexpected. You do not want to catch a bad reputation. You can limit your risk by offering a subscription to a handful of customers to see how often claims occur. In addition, you can effectively limit your customer offers by creating different subscription plans that cover specific areas of insurance.