Subscription model B2B: why choose the subscription business model?
Posted: Tue Dec 03, 2024 6:51 am
From Netflix to Spotify, through Amazon Prime and Adobe Creative Cloud and many others: subscription services are now part of both our daily lives and our working lives, so much so that we can speak of a real revolution in the Subscription Economy .
Switching to the subscription model is a great way to generate recurring revenue and give greater value to the Customer Experience , even in the B2B sector. But what are the ingredients for guaranteed success? Let's look at them together.
Subscription Model B2B what is it
What is the subscription model and why is it important?
The subscription model, or subscription business model, is no longer based france phone number library on one -off transactions, but on recurring revenues on a regular basis (monthly, bimonthly, annually, etc.) established through a contractual obligation.
We can distinguish three categories of subscription models: the first two mainly concern the B2C market, while the third, as we will explore later, is the one that most interests B2B companies .
1) Consumer product subscriptions
The customer subscribes to the regular delivery of articles, products and supplies. The model extends to the most varied product areas: from food to clothing, including beauty and pet care products.
2) Subscriptions to multimedia services
The customer subscribes to platforms that offer multimedia streaming services for audiovisual products, e-books and music.
3) Cloud products “as-a-service”
The client company subscribes to an ecosystem based on cloud infrastructure, platforms, or software.
Subscription models not only allow you to earn monthly and annual recurring revenue , but they can also help you increase revenue at lower costs by offering scalable services that align with your audience's purchasing trends.
Moving from a traditional business model to a subscription model, however, is anything but easy: it requires a radical change in setup , especially in the B2B sector.
Switching to the subscription model is a great way to generate recurring revenue and give greater value to the Customer Experience , even in the B2B sector. But what are the ingredients for guaranteed success? Let's look at them together.
Subscription Model B2B what is it
What is the subscription model and why is it important?
The subscription model, or subscription business model, is no longer based france phone number library on one -off transactions, but on recurring revenues on a regular basis (monthly, bimonthly, annually, etc.) established through a contractual obligation.
We can distinguish three categories of subscription models: the first two mainly concern the B2C market, while the third, as we will explore later, is the one that most interests B2B companies .
1) Consumer product subscriptions
The customer subscribes to the regular delivery of articles, products and supplies. The model extends to the most varied product areas: from food to clothing, including beauty and pet care products.
2) Subscriptions to multimedia services
The customer subscribes to platforms that offer multimedia streaming services for audiovisual products, e-books and music.
3) Cloud products “as-a-service”
The client company subscribes to an ecosystem based on cloud infrastructure, platforms, or software.
Subscription models not only allow you to earn monthly and annual recurring revenue , but they can also help you increase revenue at lower costs by offering scalable services that align with your audience's purchasing trends.
Moving from a traditional business model to a subscription model, however, is anything but easy: it requires a radical change in setup , especially in the B2B sector.