This chilly morning, as I saw a lorry unpacking a Peloton 🚴🏻 into my neighbour’s garage, it reminded me of a company doing recurring revenues well.
Amazon, Spotify, Gyms, Software, E-learning, Calm apps… – use monthly subscriptions as they know that the longer you can keep a customer the greater the profit 💰 Customer retention is so much more cost efficient 📈
Are you able to move to a membership/subscription mode to get predictive cash flow? Peloton’s share price has more than tripled.
Top tips for recurring revenues:
✅ Introduce a fee-paying memberships or subscription
✅ Create a loyalty program
✅ Focus on customer life-time value and retention metrics
✅ Offer incentives for repeat business – can be financial or non-financial (e.g. 10% off or a great view in a restaurant)
✅ Provide consistently brilliant customer service