Car Subscription Insights: Key Lessons for Launching a Successful Model

Hear from Industry Expert and Tomorrow's Journey CEO Chris Kirby: Insights from His Latest Speaking Engagements on Car Subscription.

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Why Car Subscription Matters Now More Than Ever

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Traditional vehicle financing models have remained relatively unchanged for decades. But evolving consumer expectations and the rise of EVs are driving demand for greater flexibility. Subscription models offer innovative, customer-centric solutions that align better with today's market needs.

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Chris explains:

• How the complexity and friction in traditional vehicle finance has stalled innovation.
• Why subscription models offer a modern alternative, better suited to contemporary consumer demands, particularly around EVs.

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Unlocking Profitability with Vehicle Lifetime Value

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One major insight from successful subscription models is a shift in mindset from short-term sales to long-term vehicle lifetime value:

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• Maximising asset value: Transition from selling vehicles after a fixed lease to continuously monetising them across multiple channels (leasing, subscription, rental).
• Reducing residual value risks: Subscription allows vehicles, especially EVs, to be utilised more effectively, significantly lowering depreciation risks.

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Recurring Revenue & Flexible Subscription Models

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Another critical lesson Chris highlights is the importance of generating consistent, recurring revenue:

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• By onboarding customers effectively and managing them digitally, businesses can upsell, cross-sell, and maintain long-term customer relationships.
• Subscription models enable companies to build deeper customer loyalty, increase profitability, and reduce the ongoing cost of customer acquisition.

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The Importance of Technology in Subscription Success

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Technology plays a fundamental role in making subscription services work at scale:

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• Robust, automated technology platforms streamline booking processes, contract management, and customer support.
• High-quality digital platforms significantly reduce operational friction, benefiting both providers and customers, and ensuring subscription services remain flexible and scalable.

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Subscription Isn't a One-Size-Fits-All Solution

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Every automotive brand has unique market conditions, target customers, and strategic goals. Chris explains how subscription services must be tailored accordingly:

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• A successful subscription strategy carefully considers market positioning, vehicle selection, pricing, and customer experience.
• Tomorrow’s Journey’s experience underlines the need for highly adaptable, data-driven subscription models to ensure long-term viability and success.

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About Tomorrow’s Journey & Chris Kirby

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At Tomorrow's Journey, we specialise in supporting automotive businesses with digital transformation and innovative mobility solutions. In the past year alone, we:

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• Managed over 16,500 vehicles globally on subscription alone.
• Processed over 38,000 transactions in subscription, totalling over 400,000 days of bookings.
• Enabled major automotive brands to innovate rapidly and sustainably.

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This video captures the essence of our experiences and the core principles we've identified for success in the subscription space.

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Watch the Full Video: Car Subscription Insights with Chris Kirby

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