Your company can take advantage of the subscription-based model by identifying the service-level agreement that sits behind your product. This involves understanding the ongoing needs of your customers and how your product or service can meet those needs on a regular basis. Firstly, you need to identify a product or service that your customers need or want on a recurring basis. This could be anything from software updates, regular maintenance, or a continuous supply of a consumable product. Next, you need to set up a pricing model that allows customers to pay a regular fee for access to this product or service. This could be a monthly or annual fee, depending on the nature of the product or service. Finally, you need to ensure that you have the infrastructure in place to support this model. This includes customer service, billing systems, and delivery mechanisms. By turning customers into subscribers, you can create a steady stream of revenue and build stronger relationships with your customers.
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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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How can your company take advantage of the subscription-based model, the most dynamic growth sector of the economy? describes how companies from software-as-a-service to auto manufacturers, music providers to construction equipment manufacturers, are turning customers into subscribers by teasing out the service-level agreement that sits behind the product.
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