Many companies outdo each other with promotions, new services and even service bundles. Few, however, think about introducing a new business model into their world. Whether we are talking about the product or the service industry, this is a difficult topic, mainly because of the high entry threshold into technical issues.

Today I would like to introduce a subscription model that works perfectly in the service industry, especially when it comes to services such as

• Beauty services,
• Tutoring,
• Consulting,
• professional services ordered for a specific date.

What is the subscription model?

The subscription model has become popular with SaaS applications, i.e. applications such as Zencal, for which you pay a monthly or annual subscription. A similar model has been applied to the entertainment services that most of us enjoy, we are talking about services like Netflix, Amazon Prime etc.

Why is this model liked by businesses?

Businesses love predictability. Nobody likes to fight for survival. Basing your business on subscriptions brings security and stability to our business. And why is that? Because when you have a customer who pays us on a recurring basis, your only goal is to attract as many customers as possible (see: sales) and to keep your existing customers so they don't flee to the competition (see: building loyalty and high quality service).

Moving to such a model means that you will spend most of your time doing what you probably like best: improving the quality of your service by focusing more on its execution, honing your skills, which you will finally find the time to do, and above all, making money.

Building customer loyalty is the key to success, but you can't focus on that if you're constantly fighting the competition and coming up with ways to get the clients you need to use your services in a given month to make the business financially sustainable.

Answer the question: which is easier - acquiring new customers who you have to convince to use your services, or selling additional services to customers with whom you have built a strong relationship and who are so satisfied with the quality of your services that they want to buy more and more? The answer comes to mind.

Introduction to the subscription business

Anything new seems difficult and complicated. In the subscription business, we have several concepts that make it much easier for us to understand and analyse the effectiveness of our actions. I will try to introduce those that I think are key to starting the adventure of building services around this model.

• ARR (Annual Recurring Revenue) - the annual recurring revenue generated by all services sold on an annual basis.
• MRR (Monthly Recurring Revenue) - the monthly recurring revenue generated by all subscriptions sold that are renewed monthly by your customers.
• WRR (Weekly Recurring Revenue) - similar to MRR, but for services that are renewed on a weekly basis. This is generally not used by SaaS companies who prefer MRR or ARR.
• Churn rate - a customer metric that measures the percentage of existing customers who have abandoned your services, i.e. cancelled their subscription.
• Customer value: A subscription-based business model requires a company to provide value to customers in exchange for regular payments. This value may come from access to exclusive content, tools, services, updates, or other benefits that exceed the value of a one-time purchase.
• Customer Lifecycle: Refers to the complete process a customer goes through from the start of a subscription to the end or renewal of the subscription. The customer lifecycle includes stages such as customer acquisition, subscriber activation, customer retention, customer recovery, and process analysis and optimisation.
• Customer Retention: Customer retention refers to a company's ability to retain existing subscribers over time. It is a key indicator of success in a subscription-based business model. Companies often take steps to increase retention, such as offering additional benefits, loyalty programmes, personalised experiences or customer support.

The key to building a subscription-based business is to know that it is a highly scalable model. Of course, it all depends on the specifics of your industry, but if your business is generating recurring, stable revenue at a fast pace, this gives you a great opportunity to grow your business and scale your services, for example by hiring new people.

Subscription from a customer perspective

The beauty of subscriptions is that your customers already know the model. Most people pay for something in a system like this, so you don't have to explain it to them. Interestingly, most of them find it the most convenient collaboration model for them, freeing them from having to remember to schedule meetings with you or your staff.

With Zencal, your client buys a subscription, sets their preferred appointments and the rest happens automatically once the subscription is paid.

With each subscription renewal cycle, we automatically schedule new appointments according to your client's preferences. If you are on holiday, we will offer them the closest available dates.

Your client can change their preferences at any time, taking into account your availability settings, which you can easily manage in the Zencal dashboard.

You receive payment before the appointment, so there is no risk of losing time due to dishonest or insolvent clients.

Subscription model in the braber shop

For a hair salon, building subscription-based services might look like this:

• Basic plan: For $90 per month, the subscriber gets 2 haircuts per month and a 10% discount on other services.
• Premium plan: For USD 150 per month, the subscriber receives 4 haircuts per month, a 15% discount on other services, and free grooming treatments every 2 months.

It is important to tailor pricing, subscription plans and names to the local market and customer preferences. When designing a subscription-based business model for a salon, it is also worth considering additional benefits for subscribers, such as priority appointments, access to exclusive services, discounts on hair and beard care products and free styling consultations.

Subscription model in a law firm

For a law firm, we could offer the following services in a subscription model:

• Basic plan: For $500 per month, the subscriber receives 2 hours of legal consultation, a 10% discount on drafting contracts and documents, and access to legal advice by phone or email.
• Premium Plan: For US$1,000 per month, the subscriber receives 4 hours of legal consultations, a 15% discount on drafting contracts and documents, court representation for one case per year, and priority phone and email support.

For law firms, it is important to set prices in line with the competitive market and take into account the specialisation and experience of the lawyers. Additional benefits for subscribers can include free emergency advice, preferential rates for additional consultation hours, priority appointments and discounts on notary services or tax advice.

Subscription model in a beauty salon

For a beauty salon, we could offer the following services in a subscription model:

• Silver Plan: For $150 per month, the subscriber receives 1 classic manicure, 1 spa pedicure, and a 10% discount on other services.
• Gold Plan: For USD 300 per month, the subscriber receives 2 classic manicures, 2 spa pedicures, 1 relaxing massage and a 15% discount on other services.
• Platinum Plan: For USD 500 per month, the subscriber receives unlimited classic manicures and spa pedicures, 2 relaxing massages, 1 facial, 20% discount on other services and priority scheduling.

For a beauty salon, it is important to adapt prices to the local market, taking into account the high quality of products and services, as well as customer preferences. Additional benefits for subscribers can include discounts on skincare products, invitations to exclusive events, access to beauty innovations before other clients, free skincare and make-up advice and the ability to book preferential appointments.

Subscription model in tax advice

For corporate tax advice, we can offer the following services on a subscription basis:

• Basic Plan: For $500 per month, the subscriber receives 2 hours of tax consultation, a 10% discount on tax return preparation, and access to telephone or email support.
• Premium Plan: For US$1,000 per month, the subscriber receives 4 hours of tax consultations, a 15% discount on tax return preparation, tax review and optimisation, priority phone and email support, and access to up-to-date information on changes in tax legislation.

Tax advice must take into account the complex nature of tax and the experience and specialisation of tax advisers. Additional benefits for subscribers may include free tax audit consultations, discounts on corporate tax audits, regular updates on tax law changes, access to exclusive tax reports and analysis, and personalised financial planning and tax strategy advice.

Subscription model in tutoring

For tutoring services, we could offer the following subscription packages:

• Basic Plan: For £100 per week, the subscriber receives 4 hours of tuition per month in the chosen subject.
• Premium Plan: For £400 per week, the subscriber receives 8 hours of tutoring per month, a choice of subjects and priority support for exam preparation.

Tutoring is based on the tutor's qualifications and experience as well as the student's preferences. Additional benefits for subscribers may include access to additional learning materials, e-learning platforms, exam and test preparation support, monitoring of student progress, and access to additional online consultations or support for urgent questions and learning problems. It is also important to offer a flexible tutoring schedule to suit the student's needs.

Subscription model in consulting

For consulting services, we could offer the following subscription packages:

• Basic Plan: For $3,000 per month, the subscriber receives 5 hours of consulting per month in the selected area, access to industry reports and analysis, and phone or email support.
• Premium Plan: For $6,000 per month, the subscriber receives 10 hours of consulting per month, flexible access to a consultant in multiple areas, access to specialised training and workshops, and priority support.

When it comes to consulting services, it is important to take into account the specialisation and experience of the consultants and to align pricing with the value they bring to the customer. Additional benefits for subscribers may include individual coaching sessions, access to business networks, monitoring of the results of consulting activities, recommendations for process and strategy optimisation, and the opportunity to attend exclusive industry events and conferences. Flexibility and personalisation of services are key to meeting the individual needs of clients and providing them with valuable solutions.

Summary

Zencal can certainly be a valuable tool in implementing a subscription model for a variety of industries. Thanks to its automation and ease of use, Zencal can get a subscription up and running in as little as 15 minutes. This speed and ease of implementation can be reassuring for businesses that may have previously feared a complicated technical process.

Indeed, moving to a subscription model can be an effective way to differentiate and surprise customers with a new approach. The speed, simplicity and convenience of a subscription can attract new customers and build loyalty with existing ones.

It is worth noting that Zencal offers automation of the scheduling process and management of customer preferences, which is key to the effective operation of the subscription model. This allows businesses to focus on providing a valuable service, while Zencal takes care of the maintenance.

Therefore, by using Zencal, entrepreneurs can be among the first in their industry to realise the potential of the subscription model, offering customers speed, simplicity and convenience in payment and service.

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