3 Reasons Subscription Services Fail

A subscription business is about more than recurring revenue. A successful subscription business is a function of the strength of the habits they create. The author, who has studied the fundamental attributes of habit-forming products, has identified three reasons why these businesses typically fail: 1) There are too many steps to psychological relief; 2) They don’t offer enough novelty; or 3) They don’t offer enough “stored value” to build a long-term relationship with the customer.