By ISABELLA CASTAÑEDA RODRÍGUEZ | EGADE BUSINESS SCHOOL
The subscription economy has expanded into mobility, food, health, and wellness in Latin America, requiring strategies that respond to shifting economic realities.
The episode was hosted by Pablo Necoechea, Regional Director of EGADE Business School in Mexico City and Querétaro. Participants included Fabiola Vázquez, Director of the Master in Business Analytics at EGADE Business School, and Ana de Saracho, CEO of Lady Multitask.
De Saracho pointed out that the value proposition in subscription models is evolving. She explained that “it is no longer just about purchasing or consuming a product or service, but about living an experience.” For her, the relationship must seek to build a sustainable emotional connection.
She also emphasized the saturation of the market. “The supply is so large that I believe it is 100% exceeding demand,” she said. For companies, this means reinforcing differentiation and relevance to avoid cancellations.
Necoechea discussed the region’s economic context, noting that “more than 60% of the population has variable or informal income.” This condition makes retention more fragile and requires adaptable models that align with changing spending capacity.
Vázquez highlighted the role of analytics in customer retention. She stated that “the key lies first in understanding.” Through data, companies can design flexible experiences that accompany the customer’s financial journey.
One growing approach is subscription formats that allow users to pause or resume without penalties. This model, adopted by platforms such as Rappi and Spotify Premium, reduces pressure from fixed payments and increases the likelihood of return.
Vázquez referenced the use of advanced analytics in companies like Netflix and Duolingo, which “have advanced machine learning models to detect inactivity or intent to cancel.” These tools enable companies to take action before the customer leaves.
De Saracho emphasized the strategic role of data, stating, “Data is everything.” She explained that the goal is not to overwhelm users, but to design benefits that truly matter to them.
On the debate around subscription fatigue, Vázquez clarified that “consumers in general do not get tired of paying when they feel they are receiving a product or service that is worth it.”
You can listen to more episodes of Territorio Negocios on Spotify, Apple Podcasts, Amazon Music, and YouTube.
