Too Much Choice Makes Loyalty an Endangered Species, 2040’s Ideas and Innovations Newsletter, Issue 77

Issue 77: Oct 13, 2022

There’s a sea change taking place in social media and streaming platforms which should be a red flag for organizations that offer memberships, subscriptions or use devices that seek to deliver continuous value via consumer consumption, leading to rich sources of recurring revenue.

Members Only

Membership and subscription have become all the rage over the past five years across many businesses. The continual drips of monthly or yearly revenue over time resulting from memberships and subscriptions acts as a steady flow of income. This income is predictable and feeds into solid forecasts. Recurring revenue is the new white in winter. When organizations offer products that result in a one-off, single purchase, revenue is less predictable and comes with high expenses associated with repetitive customer acquisition.

In terms of devices, most are sold at an initial loss for the promise of future recurring revenue. Owners invest in devices knowing they can use them to seek …