Excerpts from an article by Lauren Wilmore in The Next Web
According to a 2013 Economist study, four out of every five businesses (that’s 80 percent for those of us who don’t do math) are seeing a change in how their customers want to access and pay for goods and services. And as a result, over half of these same companies are changing their pricing models.
Before you end up with the tides of change relentlessly crashing over you, here are a few reasons app stores better off embracing the subscription economy.
Cut the useless crap
With a subscription-based business model, app stores can clear out the clutter and keep top-ranking, high quality apps alive and well. And far, far away from the R&D (ripoff and duplicate) of copycats.
Latest and greatest products
The subscription model also guarantees that clients will have the latest product releases and are working with up to date software.
Flexibility to scale on a whim
Subscriptions allow clients the security of knowing that everything is month-to-month, and nothing is set in stone – or scope.
Build great customer relationships
If you want to build loyalty, you shouldn’t treat your customers as a one-and-done sale.
The bottom line is your bottom dollar
Buying software makes no sense.
Show me the money
A subscription-based sales model offer the ability to predict revenue through recurring streams. It introduces regularity into a world of chaos and (financial) unpredictability.
As cloud-based technology evens the playing field, having a few extra features, allowing for expansion, or building a little more loyalty will create an immense competitive advantage.
Read the full article on The Next Web
And download Zuora’s 9 Keys to Building Success in the Subscription Economy!