The subscription model aligns with the trend of customers preferring outcomes over ownership as it focuses on providing a service or outcome rather than a physical product. This model allows customers to access a range of services or products without the need for ownership, which can be more cost-effective and convenient. For example, in the media industry, customers can access a wide range of content through a subscription, without needing to own each individual piece of content. Similarly, in industries like healthcare or utilities, customers can access the services they need when they need them, without the need for ownership.
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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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In today's digital world the focus is on the individual customer not on the product, and those customers prefer outcomes over ownership. Brick-and-mortar retail is transforming, focusing on customers' online experience and using the data gleaned there to inform the stocking of physical stores. The news industry is enjoying a renaissance thanks to online subscriptions; media is in a new golden age of on-demand streaming; and car subscriptions give access to a range of vehicles from the same company. Adobe led the way in cloud-based subscription software services, overcoming the initial drop in revenue and rise in expenses to reach a position of steady growth. With the Internet of Things even heavy equipment like construction supplies can move to a subscription model by teasing out the service-level agreement that sits behind the product. The subscription access model is being used in healthcare, government, utilities, and more. The customer-focused subscription company has to break down...