The new business model is subscriptions

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 ?


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