A subscription-based model can significantly impact a company's pricing strategy. It allows for predictable revenue and can lead to higher customer lifetime value. However, it also requires careful pricing to ensure profitability over the long term. The pricing must be set at a level that is attractive to customers but also covers the costs of providing the service. Additionally, companies may need to invest in customer retention efforts to maintain their subscriber base.
Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sal...
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