A company can transition from a traditional business model to a subscription model by first understanding their customer's needs and behaviors. They can then create a subscription-based offering that provides value to the customer on a regular basis. This could involve offering a product or service that is consumed regularly or that improves over time. The company would need to adjust their operations, marketing, and sales strategies to support this new model. It's also important to have a robust system in place to manage subscriptions, including billing and customer service.
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Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sales. This new business model is why Adobe, Netflix,...
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Whether for an established company like GE, a streaming service like Netflix, or a new service provider like Box, accessing customer data to create a subscription-based offering is the growth path of the future: companies running on subscription models grow their revenue more than nine times faster than the S&P 500.
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