High tech hardware companies looking for new areas of growth increasingly see subscription services as the next growth opportunity. For hardware companies, there are three models that are your template for launching new subscription services. Those models are:
- Hardware-as-a-service (HaaS)
- Hardware-enabled services
- Hardware related consumables-as-a-service
The subscription model relies on acquiring, retaining, and growing customers to scale. Finding the ideal pricing and packaging strategy by quickly launching minimum viable products (MVPs), then iterating to generate user data that informs the continued evolution of the offerings fuels growth, retention, and expansion. The predictability of a business based on the recurring revenue of a subscription model provides a solid foundation for gaining competitive advantage and growing your business. Making the transition from a legacy model to subscription, when managed properly, can lead to increased customer retention, positive subscriber experiences, and new customer growth.
Managing a subscription business requires a shift in mindset, operating model, and underlying systems. Utilizing a purpose-built subscription lifecycle management solution can provide better subscriber experiences, automation that supports efficient resource use, and the agility to continuously improve your business.