What is the primary characteristic of a subscription-based service model? 🔊
The primary characteristic of a subscription-based service model is that customers pay a recurring fee to access a service or product. This model provides businesses with predictable revenue streams and fosters long-term customer relationships. Subscription services often include software, content, or cloud-based services that offer ongoing value and updates. By transitioning from one-time purchases to subscriptions, companies can enhance customer loyalty and facilitate better forecasting of business performance. This model also allows users to try products with lower initial costs, encouraging wider adoption.
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