A subscription model can be tailored to different types of businesses by understanding the specific needs and preferences of the target customer base. This involves analyzing customer data to identify patterns and trends, which can then be used to create a customized subscription offering. For instance, a streaming service like Netflix may offer different subscription plans based on the viewing habits of its users, while a company like GE might use subscription models for its various services based on the usage patterns of its customers. It's all about understanding what your customers want and need, and then creating a subscription model that meets those needs while also providing value for the customer.
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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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