ONEtoONE: The Subscription Economy is a game changer and is becoming a strategic success factor for companies. The change from a spontaneous and purely usage-oriented buyer to a returning and permanent consumer enables every company to build a lasting relationship with its customers. Industry-independent and from start-ups to DAX corporations, we create the ideal basis for this!
Why buy a car when you can drive a convertible today, a sedan tomorrow and an SUV next week? The younger generation of consumers in particular appreciates the advantages of subscription models. They prefer using services to owning them, which is what makes streaming portals like Netflix or Spotify so successful. After all, the ever-growing range of services and convenient access to them trumps ownership. The basic principle is not new. Subscriptions and leasing models have been around for a long time. However, they have since evolved significantly, both in the B2C and B2B sectors. The models have become much more flexible and customer-oriented. The central question for companies is no longer: How do I sell my product better? But rather: How can I develop my product further so that the customer is interested in permanent consumption and takes out a subscription for permanent access?
Lasting customer loyalty
To stay with the “car” example: While the customer becomes the owner of a car with a one-time purchase and the owner via leasing models, he becomes the user via subscription models. As a user, all services related to the car, such as maintenance, are included. With leasing models, you have to buy these services in addition, as an owner anyway. The advantage for the customer is obvious: He has maximum cost control and the flexibility to add or subtract products/services as needed in terms of scope and duration – exactly as he needs it. Using products and services “as-a-service” has the charm for the offering company that consumers enter into a lasting relationship with the brand or product. You can communicate directly with the customer and respond to their needs.
Take care of your customers,
we do the rest!
Subscription models allow you to develop your products in a customer-focused rather than product-focused way. This creates trust in your services and increases customer loyalty, thus generating higher-value customers. On the other hand, subscription models increase the requirements and complexity for managing and billing their customers. The volume of invoices and accounting documents increases and the required subscription management and regular invoicing potentiate the complexity in CRM, billing and accounting.
For flexibility in billing models – for products and services of all kinds – companies need the right solutions. The creativity of product managers should not be slowed down by restrictions in billing or accounting. Instead, product managers should always keep in mind the added value for the customer and thus for their company. In our whitepaper “Subscription Management Report 2020”, we also show you which subscription model is best suited for your product, with which you can appeal to your target group, and which fits perfectly with your business objectives: Replenishment, Curation, Club Membership, Consumption or Rental. The Subscription Management Report 2020 explains the different models and their advantages and disadvantages. With solutions from nexnet, complex subscription management becomes a simple routine. Our solutions include all the relevant building blocks for successful subscription management: from contract and customer management, the payment process and monitoring of incoming payments, to accounts receivable management, we carry out all transactions securely and efficiently.
