In a traditional sales model, the story of a product ends the moment it’s sold. The company hands over ownership, books the revenue, and moves on. There’s no need to worry about what happens next.

In a subscription or rental model, the product remains at the centre of the business or rather the operations. It doesn’t leave the company’s responsibility after the first transaction — it keeps generating revenue month after month, as long as it stays in circulation.

That flips the equation. Suddenly, the question isn’t just “How many products have we sold?” but also:

• Where are my products right now?
• Who has them?
• What condition are they in?
• How much money are they generating?

This is where asset tracking comes in. And in the subscription economy, it means something broader than just sticking a GPS tracker on a device. It’s about building visibility and control into the entire lifecycle of your products, from stock to subscription to return, repair, and back again.

At circuly, we’ve seen dozens of subscription businesses grapple with these questions — from bikes to strollers to electronics. What follows is a deep dive into what asset tracking really means in a subscription model, the challenges companies face, and the lessons we’ve learned by enabling companies across 18+ industries.

1. What does asset tracking mean in the context of consumer durable subscriptions

When people hear “asset tracking,” they often think of logistics companies monitoring trucks with GPS, or industrial machinery sending IoT data about its usage. That’s one kind of asset tracking — but in subscription models for consumer durables, it’s not the whole story.

Asset tracking in this context has three dimensions:

1. Location tracking
   • Who has the product right now?
   • Is it in the hands of a customer, in transit, or back in the warehouse?
2. Usage and condition tracking
   • How often and how intensively is the product being used?
   • Is it damaged, in need of repair, or ready to go back into circulation?
3. Lifecycle tracking
   • Where is the product in its journey: in stock → rented → returned → repaired → back in stock → next customer?
   • Has it been swapped for a bigger model, refurbished, or written off?

For most consumer durable products, this lifecycle tracking matters far more than IoT-style monitoring. GPS may tell you where a bike is, but it won’t tell you how much revenue that bike has generated, how many customers it has served, or when it’s due for refurbishment.

2. The key questions subscription businesses need answered

Once you look at asset tracking through the lens of a subscription business, the questions become very practical:

• Where is each product right now, and which customer is using it?
• How many assets are currently in rental, in repair, in stock, or permanently written off?
• If an asset is returned damaged, who is responsible for covering the repair cost?
• Out of the 100 products purchased at the start of the year, how many are still generating rental revenue and how many have exited circulation?
• How many customers has a single product passed through during its lifetime?
• What happens if a large number of customers return or swap their products at the same time — can operations handle it?

Answering these questions sounds simple in theory. But in practice, it quickly becomes complicated — because subscription products don’t just move in a straight line. Unlike a one-time sale, where the product leaves your system forever, subscription assets keep coming back, changing hands, and shifting between different states. This constant motion creates a web of dependencies that’s hard to track manually.

3. Lifecycle complexity in subscription models

When businesses first start managing their subscription assets, they usually keep it simple: an Excel spreadsheet, an Airtable base, or a handful of tools stitched together with automation flows. In the early days, this works. One row equals one subscription, one column holds the product’s serial number, and another shows the customer’s name. It’s straightforward, cheap, and good enough to get started.

But very quickly, those neat rows and columns start to unravel. Products are swapped, returned, repaired, or upgraded. A single asset may pass through several customers in a year, with stops in repair or refurbishment along the way. Suddenly, the question “who has what?” becomes harder to answer — not because the business doesn’t care, but because the product lifecycle in a subscription model is anything but linear.

To understand why this creates so much complexity, let’s look at the typical journey of a subscription asset.

• In stock → available for the next customer.
• Rented → assigned to an active subscription.
• Returned → back in the warehouse.
• Repaired or refurbished → checked and maintained before going out again.
• Re-stocked → ready for the next rental.
• Written off → lost, stolen, or at end-of-life.

And it’s rarely a straight line. A customer might swap to a different size. A bundle of products might need to be kept together as a set. Several returns might arrive on the same day, overwhelming the refurbishment team. Each of these situations adds a layer of operational complexity that can’t be handled by a static spreadsheet.

Once you recognise how complex a product’s lifecycle can be, the value of asset tracking becomes clearer. It’s not just about avoiding mistakes or keeping tabs on stock. It’s about unlocking the data that shows whether your business model is truly working. This is where KPIs come in. By turning lifecycle tracking into measurable metrics, companies can see which assets are profitable, which ones drain resources, and how the overall model is performing.

4. The KPIs that really matter

Tracking assets isn’t only about knowing where they are. It’s also about measuring whether they’re delivering value to the business. That’s why subscription companies benefit from monitoring a set of specific KPIs at the asset level.

Revenue per asset
This KPI shows how much revenue a single asset has generated across all of its rental lifecycles. It’s one of the most important numbers, because it helps answer questions like: On average, how much revenue are we generating per product? Are we able to reach or even surpass the retail price of the asset through subscriptions?

Take an example: one customer rents a product for 12 months at €45 per month, while another rents it for 24 months at €20 per month. The total revenue from this single asset needs to be added up automatically to reflect its full earning power. Without automation, this quickly becomes impossible to calculate across hundreds of assets.

Rental cycles per asset
This tracks how many times the same product has been rented out. Multiple rental cycles are a strong signal of quality and reusability — the product is robust enough to keep serving new customers without wearing out too quickly. Over time, tracking averages across all assets gives you a baseline for decision-making: if a certain product typically survives six successful rental cycles, that’s a strong case for investing in more stock of that model.

Repair costs per asset
Keeping products in circulation usually involves repairs, from minor fixes to major refurbishments. The critical question is whether these costs remain reasonable compared to the revenue the asset generates. If repair costs per asset are consistently too high, they eat into profitability and may signal that the product isn’t suitable for long-term rental.

Number of repairs per asset
Closely related to costs is frequency. Some products need the occasional touch-up, others demand constant fixes. A high repair frequency doesn’t just raise costs — it also disrupts the refurbishment team’s capacity and slows down the turnaround time for getting products back to customers.

Unique customers per asset
This measures how many different people a single product has served during its lifecycle. It’s a useful indicator of both usability and reusability. The higher the number, the more value that asset has delivered to the customer base. It also helps identify whether assets are serving only short-term customers or can stay in circulation long enough to build a larger reach.

Stock distribution
Finally, one of the most practical KPIs is simply knowing how your stock is distributed at any given time: how many products are currently in rental, how many are in repair, how many are ready in stock, and how many have been lost, stolen, or permanently bought out by customers. This overview is crucial for inventory planning. For example, if too many assets are stuck in repair, availability drops and customers may face delays. If a large portion has been bought out, it may be time to replenish stock to keep subscriptions running smoothly.

Together, these KPIs paint a picture of whether the subscription model is sustainable. They help identify which products are profitable, which ones are draining resources, and where operational improvements can make the biggest difference.

5. So what can you optimise by tracking your assets

Asset tracking isn’t just about having a tidy record of where products are. When done right, it becomes the foundation for optimising almost every part of a subscription or rental business. Here’s what improves once you have reliable asset data:

With the right data, businesses can:

• Reduce idle inventory: The faster an asset moves from being returned → repaired → and back in circulation, the more revenue it generates.
  • Faster turnaround from return → repair → next customer.
  • Less capital tied up in unused stock.
• Plan for peaks: Returns, repairs, and swaps rarely happen evenly throughout the year. With proper tracking, businesses can predict and prepare for spikes.
  
  • Anticipate repair workloads when many assets return at once.
  • Ensure availability when many customers upgrade or swap simultaneously.‍
• ‍Forecast demand: By seeing how long products typically stay with customers and how many rental cycles they survive, companies can forecast future stock needs.
  
  • Use historical data to predict future needs for different product variations.‍
• Enhance customer experience: Nothing damages trust faster than telling customers they have to wait weeks for a product swap or upgrade. Asset tracking makes it possible to guarantee availability since you know when subscription end date is.‍
  
  • Avoid delays and waiting lists by matching supply to demand.
  • Offer smooth swaps and upgrades without friction.‍
• Increase ROI per asset: The ultimate goal is to squeeze maximum value out of every asset without compromising quality. Tracking lifecycle data shows when it makes sense to repair, when to refurbish, and when to retire a product.
  
  • Extend the lifecycle of each product.
  • Balance repair costs against potential revenue.

In other words: asset tracking evolves from a passive control mechanism into an active growth driver.

6. Conclusion

In subscription and rental models, asset tracking is not an administrative detail — it’s the operating system of the business. Unlike traditional retail, where the product leaves the balance sheet the moment it’s sold, here the product remains an active asset and the foundation of recurring revenue.

That reality demands more than occasional stock counts. It requires a structured way to track where every product is, who is using it, what condition it’s in, and how much value it has already generated. Without this visibility, businesses struggle with idle inventory, rising repair costs, and unpredictable customer experiences.

The companies that master asset tracking early gain an advantage. They can forecast demand, plan repair capacity, and extend the lifecycle of their products in a way that directly improves profitability. Over time, this turns asset tracking from a record-keeping task into a strategic lever — one that influences purchasing decisions, operational planning, and ultimately the sustainability of the business model.

Put simply: in a subscription business, the asset is the business. And if you can track it, you can scale it.

7. FAQ: Asset Tracking in Subscription & Rental Businesses

Implementation & Integration

How can asset tracking be seamlessly integrated with subscription management software?‍

Most subscription management solutions include an asset tracking module, but the depth of tracking varies. Some focus on barcode or QR code scanning for location or stock control, while others support full lifecycle tracking — connecting each asset’s history to customer contracts and billing.
Best practice for consumer durables is to assign a unique serial number to every product. The subscription management system then maintains those serial numbers, automatically updates lifecycle stages (rented, returned, refurbished, bought out), and links them with customer records. This ensures accurate reporting on revenue, usage, and condition within a single system.

What asset tracking technologies (e.g., QR codes, RFID) are best suited for consumer durables in a subscription model?‍

For most consumer durables, a simple approach works best: serial numbers paired with QR codes or barcodes for easy identification. RFID may be useful in large warehouses or with very high-volume assets, but it often adds cost without much benefit. IoT and GPS trackers are only necessary for highly mobile assets like bikes or scooters.

Can asset management data sync with ERP, CRM, and inventory platforms for a unified workflow?‍

Yes. API-based solutions like circuly make it possible to integrate asset tracking with other core systems. Webhooks can send or receive data when certain lifecycle events occur. For example: when an asset moves from rented to pending return, a webhook can trigger the ERP to generate a return label and automatically email it to the customer. This kind of automation connects asset tracking directly to logistics, accounting, and customer workflows.

Lifecycle Management

How do we monitor the movement and condition of assets across multiple subscription cycles?‍

Assigning and maintaining a serial number for each product makes it possible to follow it across all lifecycle stages: in stock, rented, pending return, under repair, refurbished, and ready for the next customer.

What’s the best way to track the history (usage, repairs, refurbishments) of each individual asset?‍

Subscription management systems like circuly automatically maintain logs for each asset. These logs include customers served, rental durations, repair history, and refurbishment cycles, giving you a full picture of each asset’s lifecycle value.

How can tracking help identify when an asset should be retired, resold, or upgraded?‍

By monitoring repair frequency, repair costs, and total revenue generated per asset, businesses can make data-driven decisions on when to retire, resell, or upgrade a product. If the cost of keeping an asset in circulation outweighs the revenue it generates, it’s time to take it out of service.

Operational Efficiency

How can asset tracking optimise logistics (delivery, retrieval, swaps) for physical subscription goods?‍

Real-time asset data allows businesses to group deliveries, pickups, and swaps more efficiently. For example, if several customers in one region are due for returns, logistics can be consolidated to reduce costs and speed up processing.

Can asset tracking reduce loss, theft, and misplacement of high-value items?‍

Yes. By tying each asset to a customer subscription, there is always accountability for who has what. If a return doesn’t happen on time, the system shows exactly which customer is responsible, reducing “lost” items and improving recovery.

How do we automate notifications and logistics tasks based on asset triggers (e.g., end of subscription period, maintenance due)?‍

Subscription management systems like circuly use webhooks to trigger automated actions. For example, when a subscription reaches its end date, the system can:

• Notify the logistics partner to arrange pickup.
• Trigger an ERP task to generate a return label.
• Send the customer an automated reminder with return instructions.
  These automations reduce manual work and ensure smooth, timely processes.

Customer Experience & Accountability

How does asset tracking support transparency for customers regarding the status and history of their rented/subscribed products?‍

Solutions like circuly include a Customer Self-Service Portal where customers can see the real-time status of their subscription. For example:

• Active subscriptions show as active.
• Cancelled subscriptions show as cancelled.
• Assets that have been bought out show as bought out.
  When customers can view this information in a clear, user-friendly dashboard, it builds trust and reduces support inquiries.

How can tracking be used to streamline the return process and minimise disputes?‍

With each asset tied to a customer record, returns are transparent. If a product comes back damaged, the business knows exactly which customer had it last, making accountability clear. This reduces disputes over who is responsible for damage and speeds up the resolution process.

Analytics & Reporting

What asset utilisation and revenue insights can be gained from sophisticated asset tracking?‍

Businesses can track KPIs such as revenue per asset, rental cycles, repair costs, idle time, and customer reach. These insights reveal which products are profitable, which drain resources, and where stock planning needs adjustment.

How can asset data inform pricing models and subscription plan improvements?‍

Lifecycle data shows the real cost of keeping assets in circulation. For example, if a particular laptop model has higher-than-average repair costs, pricing plans can be adjusted accordingly. Similarly, if bikes average six rental cycles before retirement, pricing can reflect their lifecycle value.

Compliance & Insurance

How does detailed asset tracking help satisfy regulatory, tax, or insurance requirements?‍

Detailed records of asset usage and condition help meet compliance needs for depreciation, warranty management, and insurance claims. For tax purposes, they also provide accurate asset values and usage logs.

What audit trails and documentation does asset tracking provide for compliance purposes?‍

Every lifecycle event — assignment to a customer, returns, repairs, refurbishments, and write-offs — is recorded. This creates a transparent audit trail that can be used for financial audits, regulatory compliance, or insurance claims.