WE NOW LIVE IN A SUBSCRIPTION ECONOMY
Success means engaging your customers in long-term relationships
At the heart of the Subscription Economy is the idea that customers are happier subscribing to the outcomes they want, when they want them, rather than purchasing a product with the burden of ownership.
Customers have are looking for new ways to engage with businesses. Consumers today have a new set of expectations. They want outcomes, not ownership. Customization, not generalization. Constant improvement, not planned obsoleteness. Over the past 9 years, we’ve seen an explosion of new types of business models all designed to keep customers consistently engaged in long-term relationships.
In the old world (let’s call it the Product Economy) it was all about things. Acquiring new customers, shipping commodities, billing for one-time transactions. But in this new era, it’s all about relationships. More and more customers are becoming subscribers because subscription experiences built around services meet consumers’ needs better than the static offerings or a single product.
The way to analyze your business is subscription will be thru 1/ Awareness and Perception 2/ Acquisition 3/ Usage 4/ Renewal
Make sure to engage with the end user so that she / he knows, understands the value subscription of your service.
Acquire new customers, making sure you understand how to reach the end-user thru the different touch points and have a clear Route-to-Market strategy to bring your service to the end-user thru the different available channels [e-commerce, retail, distribution, …]
Make sure the end-user is using the product fully and this is key to track usage closely so that you can influence higher consumption thru CRM programs, Social Media, PR.
The Renewal will be directly impacted by usage. Higher usage will lead o higher renewal.