While adopting a subscription model can help business leverage the promise of revenue predictability and recurring incomes, company should evaluate their business before making the switch.
According to Deloitte, businesses functioning on a subscription-model are more resilient during crisis, than those that do not. Companies, then, would want to consider a subscription-based business model.
A subscription-model helps businesses unlock hyper-growth on its most popular, and consistently sold products. This helps companies experiment and fine-tune their offerings to diverse markets. Similarly, businesses should make the switch to a subscription-model using a roadmap, that starts with a pilot experiment.
Use a transition roadmap to test specific aspects of the organisation before going for an entire overhaul. Especially since traditional organisational systems, with their siloed operations and departments make it difficult to manage subscriptions. Rethink product strategies, customer engagement and marketing before making the switch.
[4 minute read]