The subscription model has several implications for the future of retail. It shifts the focus from product to customer, emphasizing personalized experiences and outcomes over ownership. This model can transform brick-and-mortar retail by using online customer data to inform physical store stocking. Industries like news, media, and automotive are already benefiting from subscription models. Software companies like Adobe have shown that despite initial revenue drops and increased expenses, the subscription model can lead to steady growth. The Internet of Things allows even heavy equipment to adopt a subscription model by focusing on service-level agreements. This model is also being applied in sectors like healthcare, government, and utilities. However, to succeed, subscription companies must prioritize customer needs and experiences.
Subscription services have grown revenues 8X faster than the S&P500 and 5X faster than US retail sal...
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