Time’s Up! From Transactional to Relational: The Subscription Business Model

The world is moving from products and services to subscriptions, favoring access and transformations over ownership and deliverables. The advantages to a subscription model are: Predictable revenue; creating annuities with a lifetime value that far exceeds whatever you paid to acquire them; not pricing services, but rather a series of customer transformations; and easier to predict demand and plan capacity. It provides peace of mind, convenience, recurring value, and a frictionless experience for the customer.

Learning Objectives

• Identify strategies utilized by businesses that have made the transition to a subscription-based model

• The psychology of selling subscriptions

• Plussing your offering—only uncommon services command premium pricing

• How to develop new accounting information to represent the economics of a subscription business