Af Morten Suhr Hansen
Has it actually become easier or harder to be a subscription business here in 2024? It’s a discussion I often have with customers and colleagues. On one hand, it seems like consumers’ appetite for new subscription concepts is still growing. But on the other hand, competition for customers is also intensifying as more and more new subscription solutions enter the market.
I hesitate to give a definitive answer. But what I do know is that the modern subscription consumer is becoming increasingly discerning and conscious in light of the growing options. So how does one actually stay ahead of competitors? Where do you find inspiration for how to develop and present your value proposition, or the way you attract and retain subscribers?
At Subscrybe, we constantly focus on finding the best and most innovative subscription businesses worldwide. We delve into what they do exceptionally well to strengthen their subscription models. That’s why we’ve just released ‘Subscription Cases 2024,’ composed by my great colleague, Niels Vestergaard. In this report, you can explore 10 concrete cases and gain insights into their subscription businesses.
I’ve had the pleasure of contributing to two fantastic cases, which I’d like to elaborate on here.
Porsche Drive introduces a fresh perspective on luxury cars
Let’s hit the road! In a car, but not just any car. If, like me, you relish the driving experience behind the wheel of a luxury car, then read on. One of the world’s leading manufacturers of luxury and sports cars, Porsche, has entered the market for renting rather than owning with the Porsche Drive concept.
Porsche Drive initially launched as a pure subscription concept in the USA years ago under the name Porsche Passport. Following a successful relaunch as Drive, it has now expanded from the USA to Europe as well. What Porsche has done right with their Drive subscription program is to lower the barriers to getting behind the wheel. Opting for the monthly program, you get a fixed price with mileage, insurance, and even without activation fees. Pay the bill and get behind the wheel. This is the only viable way to compete with other car rental companies or the numerous mobility solutions emerging in major cities worldwide.
Porsche Drive could serve as the perfect example of how luxury brands are beginning to embrace subscription-based revenue models and understand that even consumers who are not willing (or able) to spend a fortune on acquiring a luxury item. According to the consulting firm Bain & Company, rentals and subscriptions are projected to account for nearly 10% of revenue in the luxury goods industry by 2030. It simply doesn’t make sense to keep assets sitting idle without being utilized.
Incidentally, I had the pleasure of experiencing Porsche’s rental model myself on a weekend trip to Stuttgart, where a red 911 cabriolet took me on a delightful journey through the Black Forest mountains. That’s a whole different story, but the smile hasn’t completely disappeared yet. Personally, I look forward to seeing Porsche Drive introduced in Denmark as well.
Nornorm is reimagining the workplace and the way office furniture is purchased
Staying within the realm of physical products but shifting focus from the road to the workplace, Nornorm is a Scandinavian ‘furniture-as-a-service’ company that aims to revolutionize an entire industry by introducing a subscription model for office furniture. They achieve this by offering a full-service concept where customers pay a monthly subscription based on the number of square meters furnished.
You can actually get started for as little as €3 per square meter per month, and if you want to make changes along the way, you just do it. No exchange fees or hidden costs. Everything is included in the subscription. Also included in the subscription is an interior designer who helps fully furnish the office. With 3D models and a selection of products to choose from, you can customize and personalize the workplace according to different styles.
At Subscrybe, we’re facing an upcoming office relocation. We’re moving into brand-new and even more luxurious surroundings. Naturally, we’ve chosen Nornorm to provide furniture for our new offices. After all, we love subscriptions. But for us, it also really matters that Nornorm is committed to a circular agenda. The furniture that comes back from a customer is carefully serviced before moving on to the next customer. So, we don’t even know if the furniture is brand new or recycled. But luxurious it will be!
Discover even more exciting cases in the report
Porsche Drive and Nornorm are just two of the exciting cases featured in the ‘Subscription Cases 2024’ report. You can also read about Strava, Blinkist, Duolingo, Canva, and many more. I’m confident that as a subscription professional, you can find great inspirations for your subscription business. Because the key is never to stand still. Your subscribers expect evolution. Otherwise, they’ll quickly move on to someone who does it even better.
Hurry up and download the report here.
