Though it is predominant in the software industry, the subscription business model has continued to grow in use across all sectors. A subscription-based business model is a business model that asks clients or subscribers to pay a recurring fee, for example, yearly or monthly in order to be granted access to a product or service. A subscription revenue model enables businesses to capitalize on the compounding value of customer relationships. This implies that customers will continue to be loyal to a brand as long as it continues to provide value and solutions to them. For this reason, most firms strive to evolve qualitative products and services and to constantly improve these products and services. In today’s highly competitive business environment, periodic innovations on the part of the product and/or service providers not only helps them keep hold of existing subscribers but can also help them attract new ones. The subscription business model is one that has yielded several fruitful results for businesses in all industries. However, no matter the type of company involved, be it a SaaS firm, a streaming service, or a subscription box company, what matters most is identifying and implementing the appropriate subscription strategy needed to drive growth. There are several strategies a firm can adopt to maximize its potential. However, a subscription model has to ensure that its subscription plans are as simplified and clarified as possible such that it can neither confuse subscribers nor stretch their comprehension levels unnecessarily. Also, the freemium concept has the capability of attracting new prospects who can commit their resources to the product or service in the future. Lastly, being human, subscribers, (particularly long-standing subscribers) can also be motivated by customer-friendly offers like free products and services, discounts, etc, as reward for keeping faith with a brand. Luxplus is a subscription-based company that provides a variety of products and services.
Luxplus is a members club and Danish company that was established in 2013. It presently has members in some countries, including the UK. Luxplus asserts to offer a wide range of products including beauty products such as perfumes, cosmetics, natural and organic products, hair products as well as household items, and many others. The company asserts intending members must be above 18 and membership can be cancelled at any time. “The idea is not only to attract membership but to provide them with money-saving incentives that encourage the purchase products” claimed Luxplus. Luxplus is headquartered in Copenhagen and has a branch in Hethersett, UK.
Products and services of Luxplus
Products available at Luxplus include health, food/drink, beauty, pet, and home decoration items for men, women, and children. Among these items are hair conditioners, body sprays, face cleansers and soaps, body lotions, supplements, vitamins, protein bars and energy bars, tea and coffee, cooking equipment, jewellery, contraceptives, and several other products. Luxplus only delivers to mainland UK and Northern Ireland. Clients wishing to return purchased products must notify the company and then return them within 14 days of notification.