The subscription model has skyrocketed in popularity in France over the past few years. The average French person has 3 subscriptions, spending roughly €65 per month, or €780 per year, on them.

Below, we provide an overview of subscription sales and explain how businesses can benefit by creating a product that appeals to customers and is profitable.

What's in this article?

• What are subscription sales?
  
• What products and services can be sold by subscription?
  
• Types of subscriptions
  
• What are the pros of the subscription model?
  
• What are the cons for businesses?
  
• Payment methods compatible with subscriptions
  
• Creating a subscription product
  
• Successful subscription sales
  
• How Stripe Billing can help
  

What are subscription sales?

Subscription sales are an economic model in which a business provides continuous access to a product or service in exchange for recurring payments. Subscription billing, orders and payments are processed automatically.

Businesses usually offer weekly, monthly or annual subscriptions. Rates can be fixed and billed on a defined schedule or might vary by usage.

What products and services can be sold by subscription?

Traditionally, the subscription model has been used mostly by media businesses (newspapers and streaming services), fitness centres, insurance businesses, internet and telephone providers, and banking service providers.

Today, the model can be found nearly everywhere, with businesses selling beverages, meals, clothing, bike rentals, health and beauty products, cloud software (including software-as-a-service [SaaS] and micro-SaaS), and classes via subscription.

Types of subscriptions

In France, there are several categories of subscriptions: recurring purchases, discoveries, necessities and subscriptions for digital services.

Recurring subscription model

Recurring purchases are best for products consumed regularly, such as vitamins, coffee pods, dog food and cleaning products. Customers receive shipments automatically on a schedule without having to place a new order.

Discovery subscription model

Subscription boxes target customers who want to explore new products. Businesses use the element of surprise to attract customers who regularly receive a box containing an assortment of products. This subscription model is best for beauty products, food, beverages and clothing (e.g. Le Petit Ballon, My Little Box, Birchbox).

Necessity subscription model

For some necessities, the subscription model is the only one available. For example, customers must subscribe to receive phone, internet and insurance services.

Digital services subscription model

Spotify, Netflix and Amazon are examples of digital services provided via subscription. SaaS software is also sold by subscription.

What are the pros of the subscription model?

Subscriptions offer several benefits for customers and businesses.

Advantages for subscribers:

• Saves money (often cheaper than buying items individually)
  
• Ensures access to the latest version of the product or service
  
• Makes budgeting easier
  
• Simplifies purchasing
  
• Allows a trial of a product or service
  

Advantages for businesses:

• Regular income boosts revenue and simplifies accounting
  
• Financial predictability creates improved cash flow management
  
• Reinforces long-lasting relationships with customers (long-term loyalty)
  
• Ensures fewer late payments
  
• Reduces cost of acquiring new customers
  
• Generates data on customer behaviour to help refine product offerings
  

What are the cons for businesses?

Businesses using the subscription model face certain risks, such as attrition, failed payments, and tough competition. To stand out and minimise attrition rates, businesses must convince customers of their added value, update and upgrade their products and services, and innovate.

In terms of payment, the primary risk is a declined bank card (due to an expired card or insufficient funds). Stripe Billing helps by sending customers notifications immediately if their payment is declined so they can update their payment method. Billing also automates invoicing, subscription management, and payment processing and provides detailed reports on recurring income.

Payment methods compatible with subscriptions

Ideally, businesses should offer multiple payment methods. Bank cards, bank transfers, automatic debit and digital wallets are compatible with subscription models.

Creating a subscription product

To create an appealing subscription product, you should:

• Identify your target market by conducting market research and analysing the competition
  
• Develop a compelling offer
  
• Set your rates
  
• Build technical infrastructure (e.g. secure payment systems that accept recurring payments, subscription management software, AI tools) to handle logistics
  
• Comply with legal requirements
  
• Create a launch plan
  
• Test your product in the target market
  
• Establish high-quality customer service
  
• Analyse performance, and refine your product based on that information
  

Successful subscription sales

If you want to sell a product or service via subscription, make sure to create a simple, intuitive user experience. You might even offer a free trial to boost your conversion rate.

To minimise attrition, it's important to create a lasting relationship with every customer based on trust, transparency and respect. You can also offer a variety of rates and payment methods and reward long-term customers.

Finally, ensure a fast, easy way for customers to cancel subscriptions. You can offer a discount on the first month (or week or year) of a new subscription to encourage them to resubscribe.

How Stripe Billing can help

Stripe Billing lets you bill and manage pricing however you want – from simple recurring billing to usage-based billing and sales-negotiated contracts. Start accepting recurring payments globally in minutes – no code required – or build a custom integration using the application programming interface (API).

Stripe Billing can help you:

• Offer flexible pricing: Respond to user demand faster with flexible pricing models, including usage-based, tiered, flat-fee plus overage and more. Support for coupons, free trials, prorations and add-ons is built-in.
  
• Expand globally: Increase conversion by offering customers' preferred payment methods. Stripe supports 100+ local payment methods and 130+ currencies.
  
• Increase revenue and reduce churn: Improve revenue capture and reduce involuntary churn with Smart Retries and recovery workflow automations. Stripe recovery tools helped users recover over $6.5 billion in revenue in 2024.
  
• Boost efficiency: Use Stripe's modular tax, revenue reporting and data tools to consolidate multiple revenue systems into one. Easily integrate with third-party software.
  

Learn more about Stripe Billing or get started today.