In the future instead of selling products and services for a one-time fee you will be selling subscriptions.
Not just for services but also for investment goods and consumables.
The customers’ benefits for subscription
These subscriptions mean for your customers:
- No high entry start-up costs or investments
- Just a monthly fee that changes upon their needs
- A variable subscription fee
- Less hierarchical involvement in decisions
- A simpler pricing model
- A higher service level thanks to the monthly payments
- The possibility to change vendor over a short time
The vendors’ benefits for subscription
These subscription bring:
- The recurring revenue exceeding the initial investment of the product over time
- Shorter sales cycles due to lower budget
- Monthly contact with the customer possible
- Up-selling and cross-selling possibilities
You better start preparing your company for this change in marketing, sales, support and even operations. Once you have finished your internal preparation it is time to inform and prepare your customers as the change to a subscription business model is tremendous change of mind for all involved.
When will your business change to subscriptions ?