The Recurring Economy: How the Subscription Model Dominates the Market

A recurrence economy is redefining the way we consume services, products and experiences.

In a world where predictability is as valued as practicality, subscription-based models are gaining ground in a wide range of sectors.

From streaming services to corporate software, recurring payment systems are gaining prominence.

In this article, we'll understand how this transformation is occurring, what's driving its growth, and how companies and consumers are adapting to this new logic.

Summary:

1. What is the recurrence economy?
2. Why is the subscription model growing so quickly?
3. What are the impacts on business strategies?
4. The relationship with technology and digital culture
5. Risks and challenges of the recurring model
6. Trends and the future of recurrence
7. Sustainability and conscious consumption
8. The role of communities and content creators
9. Frequently Asked Questions

What is the recurrence economy?

A recurrence economy It is characterized by the offering of services or products in subscription models, with payments made in regular cycles (monthly, quarterly or annual).

This format is not limited to large companies: small businesses are also migrating to recurring models, especially in digital.

Companies prioritize revenue predictability and building lasting customer relationships.

This model offers constant access to the service, without the need for one-off purchases, creating a deeper connection between brand and consumer.

This logic is favored by consumer behavior increasingly focused on continuous experiences.

Instead of purchasing a single product, customers seek access to a complete ecosystem of solutions. This new format redefines the value proposition.

Additionally, subscriptions often come with exclusive benefits, such as priority service, extra content, or advanced customization.

All of this contributes to creating a perception of value that goes beyond price.

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Why is the subscription model growing so quickly?

Digital transformation and contemporary consumer behavior are at the heart of this growth.

Today, consumers value access over ownership. They want flexibility, convenience, and the freedom to experiment with different options without long-term commitments.

The success of companies like Spotify, Netflix, and Adobe demonstrates how adopting the model can boost scalability and customer retention.

In 2024, the global subscription market generated more than US$1.4 billion, according to consultancy Zuora, showing that the trend is far from slowing down.

This movement extends to sectors such as education (with platforms like Coursera), fashion (like Le Tote), food (HelloFresh) and even urban mobility (with subscription plans for the use of bicycles and electric cars).

Recurrence also meets the need for constant updates, something increasingly demanded by a connected and demanding audience.

The customer no longer wants to buy a fixed version of a product, but rather have access to continuous evolutions.

Software companies, for example, have almost entirely migrated from the perpetual license model to SaaS (Software as a Service), reflecting this behavioral and operational change.

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What are the impacts on business strategies?

Companies that adopt this model need to rethink their organizational culture, prioritizing the customer experience throughout the entire cycle.

The focus shifts from one-off sales to recurring engagement. This changes everything from pricing to after-sales service.

Churn management (cancellations) becomes a key metric. Strategies like personalized onboarding, proactive support, and consistent value delivery help maintain an active customer base.

The model requires data-centric operation and real-time decision making.

The example of Wine, a Brazilian wine club, illustrates this logic well.

The company invested in exclusive experiences, personalized curation, and ongoing communication with subscribers to increase loyalty.

Another impact is pricing. It's important to find a balance between attractiveness and profitability.

Tiered plans, free trials, and loyalty benefits are ways to reduce barriers to entry and encourage retention.

A customer success-based approach becomes essential. Instead of just selling, the focus is on ensuring the customer achieves their service goals. This translates into lower churn and higher lifetime value.

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The relationship with technology and digital culture

The rise of recurrence economy is deeply connected to technological advancement.

Subscription management platforms, automated payment gateways, and BI enable precise scaling. Tools like Stripe, Recurly, and Chargify have become essential in this ecosystem.

Digital culture also shapes expectations. Fast updates, intuitive interfaces, and customization are expected.

Customer experience has gone from being a differentiator to a prerequisite. Brands that deliver poor experiences are quickly replaced.

Startups like Notion, for example, have revolutionized the way we manage knowledge and productivity, always with an affordable, flexible, and scalable subscription offering.

This shows how even complex solutions can be adapted to the model.

Furthermore, data analysis becomes a strategic pillar. Understanding subscriber behavior allows you to adjust offers in real time, improve retention, and increase the average ticket.

Risks and challenges of the recurring model

Despite its advantages, the model isn't foolproof. Cancellations, defaults, and support failures can all compromise the strategy.

An insufficient service structure can lead to frustration and loss of trust.

Volume dependence also requires lean, efficient, and data-centric operations. Without them, the model loses financial viability.

Another point is transparency: consumers seek clarity in terms of conditions and ease in canceling services.

According to McKinsey, 40% of US consumers canceled at least one subscription in 2024 because they didn't feel they were getting enough value.

This reinforces the importance of constantly delivering relevance and innovation.

Companies that don't invest in customer experience, support, and differentiation face a costly and inefficient acquisition-churn cycle.

The challenge is to keep the customer not just satisfied, but delighted.

Trends and the future of recurrence

With generative AI and hyper-personalization gaining traction, subscriptions are on their way to becoming even more tailored to individual preferences.

The content, service and even plans must adapt to each user's profile.

A recurrence economy tends to expand into new niches, such as preventative healthcare (e.g., personalized check-up plans), sustainable products (eco-friendly cosmetics subscriptions), and immersive experiences (on-demand virtual reality).

See below a table showing the fastest-growing sectors in the subscription model:

Community monetization also emerges as a promising avenue.

Content creators and experts are turning knowledge into recurring business with paid podcasts, exclusive mentorships, and proprietary platforms like Patreon.

Sustainability and conscious consumption

The recurring model aligns with a larger trend: conscious consumption. Instead of buying and hoarding, the modern consumer prefers to access and renew.

This reduces waste and promotes circularity.

Companies that integrate ESG practices into their subscription models gain a competitive advantage.

Sustainable products delivered via subscription, such as rental clothing or reusable items, are gaining traction in specific niches.

This behavior is more prevalent among Generation Z consumers, who seek convenience, purpose, and a positive impact in their purchasing decisions.

The role of communities and content creators

Independent creators have explored the subscription model as a way to financial independence.

On platforms like Substack or Catarse Subscriptions, journalists, educators, and artists offer premium content to their supporters.

This creates a direct connection between creators and consumers, with more meaningful exchanges and true loyalty.

It is a viable path to sustainable monetization of niches and original production.

This relationship also humanizes the consumption process. By directly supporting someone they admire, subscribers don't just pay for a service, they participate in an ecosystem of shared value.

See the latest data on the SaaS market from Statista: Statista – SaaS Revenue 2025

Frequently Asked Questions

Is the subscription model suitable for small businesses?
Yes. Small businesses also benefit from cash flow predictability and loyalty. One example is selling artisanal coffees through a monthly subscription with personalized deliveries.

What is the difference between the sharing and recurring economy?
The sharing economy focuses on the collective use of goods (like Uber or Airbnb), while the recurring economy is based on regular payments for exclusive and individual access.

Is the consumer tired of so many subscriptions?
There's saturation in some segments, but the key is to offer real value, flexibility, and control to subscribers. Transparency and the freedom to cancel are also essential.

How can I adapt my marketing strategy to this model?
Focus on relationships, retention, and personalization. Invest in relevant content, exclusive experiences, and data for decision-making. Avoid aggressive sales pitches.

Where can I learn more about this topic?
The Harvard Business Review features relevant articles on this model and its implications.

A recurrence economy It's not a passing trend. It's a new chapter in the relationship between brands and consumers.

It is up to companies to understand this new contract of trust, based on value, transparency and relevance.