New ways to help customers in the dynamic lives they live today are always being conceived; companies spend large percentages of their budgets to deliver what they believe customers are looking for and make the process of ownership simpler.
One such creation in the car industry is subscription services. We all know about TV and gym subscriptions, but car subscriptions have become increasingly popular.
This article will look into why car subscriptions are so attractive and what the psychology behind wanting a subscription service over other forms of ownership is.
Why are subscriptions desired?
Thanks in part to the advancements made technologically, our world has become faster-paced than ever and is changing all the time. The clamor for people to sign up for long-term contracts is waning, from our mobile phone and TV packages to the gyms we use.
Commitment to one company or product is no longer as desired as it was; times change and companies need to adapt to this contemporary mentality. At Drive Pivotal, we know what drivers want and believe that flexible car subscription services are the future. We offer a range of subscription packages, including electric vehicles, that put you in control.
Subscriptions, rather than contracts or outright ownership, are viewed as a model that is more considerate of the needs of a customer. The explanation for this could be that it doesn’t tie a person down, forcing them to pay 24 months’ worth of a contract that they could be fed up with 6 months into, for instance.
More and more, there seem to be companies offering customers the ability to amend their subscriptions throughout the process. This is advantageous to the customer when they receive a part of their service that they didn’t quite expect or have since found an aspect of subscribing to a product or service on offer that they didn’t initially realize.
How do subscriptions compare to contracts?
When you want to own a car outright, and often in cases of contractual obligations, there is up-front capital required, deterring a lot of potential customers as they simply don’t have access to that sort of money. This is not a complication when it comes to subscriptions, however, where you only need to pay a set monthly fee with no deposit.
Consider a Netflix subscription, for example, you sign up and pay the first month’s worth immediately, but then don’t pay anything until the next month, which covers your viewing for another approximately 30 days. This is also the case for a car subscription; rather than paying a vast amount in a contract you’re obligated for a fixed period, you only need to pay monthly, keeping it flexible and putting you in command – a commitment to a car needn’t be a necessity anymore.
For everything else on car subscriptions and what their benefits are, get in touch with Drive Pivotal now and we can talk you through the details.