Over the past decade, the tech-inspired subscription business model has transformed industries and challenged traditional approaches to sales and customer loyalty.
From Netflix’s all-you-can-watch model to Adobe’s shift from software sales to monthly payments, subscriptions have proven to be resilient, profitable and sticky.
For SMEs, they offer a way to generate more predictable revenue, deepen customer relationships and deliver better lifetime value.
Thanks to new platforms, payment processors and changing customer expectations, the model is no longer the preserve of tech giants — it’s becoming a smart growth strategy for many businesses.
Microsoft’s Office 365 replaced boxed software with cloud subscriptions, while Spotify turned music into a service.
The benefits for large businesses are obvious: steady revenue and stronger loyalty, but what’s more interesting is how subscriptions are filtering down to smaller players.
In Tramore, Co Waterford, The Book Resort offers a monthly subscription box featuring books, artisan chocolate and hand-crafted gifts — delivering recurring delight while supporting local producers.
Founder Aisling Finn says launching a subscription model was “the best thing I ever did”.
Her business offers books across genres, coupled with Irish-made gifts, with around half of subscribers gifting to themselves for the surprise factor.
Started in 2019 and accelerated during Covid, the model serves Irish and European customers and has been so successful that it recently expanded into a physical shop in Tramore.
Florists have also embraced subscriptions, offering fresh flowers delivered monthly. In professional services, accountants are bundling tax and payroll into monthly retainers, allowing clients to budget predictably and avoid large once-off bills.
There’s no doubt subscriptions can suit a wide range of industries including retail, fitness and even trades.
But before diving in, business owners should ask three questions.
First, is there a recurring need for our product or service?
A hair salon might offer unlimited blow-dries for a flat monthly fee, while a home repair firm could bundle regular maintenance visits.
Second, can you deliver fresh value over time?
Customers expect something new in each cycle, whether through exclusive access, additional services or surprise products.
Third, can you manage the operational side?
Subscription businesses require good billing, CRM and communication tools.
Platforms like Stripe, Chargebee and Subbly now make it easy for even small firms to set up recurring billing and customer management.
Choosing the right model depends on your audience.
There’s replenishment (pet food) curation (subscription boxes) and services which offer ongoing support and maintenance (software).
SMEs can start small, offering VIP membership schemes or bundling services into bronze, silver and gold tiers.
Crucially, subscriptions thrive on customer trust and engagement.
Easy onboarding and flexibility to pause or modify subscriptions are vital.
Done right, subscriptions can turn occasional buyers into loyal advocates.
For Irish SMEs, the opportunity is real as consumers are more open than ever to recurring purchases that deliver value and novelty.
Whether you sell products, services or expertise, thinking like a subscription business could be the smartest move you make this year.
