EXPLORING SUBSCRIPTION-BASED BUSINESS MODELS IN ISLAMIC DIGITAL SERVICES: PROFITABILITY AND CUSTOMER RETENTION

Abstract

The development of Islamic digital services has encouraged various innovations in business models, one of which is the subscription-based business model. This model is considered capable of providing more stable revenue while also fostering long-term relationships with customers. However, in the context of Islamic business, profit sustainability is not solely measured by financial gains, but also by compliance with Sharia principles, justice, and social welfare (maslahah). This study aims to explore the implementation of subscription-based business models in Islamic digital services and to analyze their influence on profitability and customer retention. The study employs a qualitative approach using a case study method involving several Islamic digital service providers. Data were collected through in-depth interviews, platform observations, and documentation. The findings indicate that the subscription model contributes to cash flow stability and enhances customer loyalty through value-driven content, continuous service delivery, and ethical communication. The main challenges include maintaining Sharia compliance in payment systems and sustaining service quality. This study contributes to the development of sustainable and ethical Islamic digital business models.