Subscriptions: The Evolving Customer Relationship
MPP Global, together with research and advisory firm Forrester, are hosting an exclusive webinar 1 June at 10am EST. MPP Global’s Digital Consultant Ben Catterall and Forrester Analyst Lily Varon will be sharing their expertise on the phenomenon that we call ‘the age of the customer’.
Register now to discover how digital innovation can enhance your business and how to generate sustainable recurring revenues through flexible cloud technology.
- What is the age of the customer?
- Subscription disruption
- Companies innovating
- The benefits of hybrid models
- The importance of subscription transparency
From the age of manufacturing, to the age of distribution in the 1960s and the age of information in the 1990s, we now find ourselves in a technological age where business models continually adapt and businesses of all sectors, are looking to innovate to stay ahead.
The Age of the Customer
Personalization has revolutionized the digital landscape. Newly empowered customers have given rise to a new era where businesses must become entirely customer focused, where basic segmentation just won’t cut it. A customer-obsessed enterprise focuses its strategy and its budget on the technologies and processes that win, serve, and retain customers.
Omnichannel retailers, ecommerce business and content owners can now harness digital intelligence using specialist technology to learn more about the customer and establish direct 1:1 relationships. As a result, digital disruption of traditional business models has become widespread and the requirement for recurring revenues and increased customer lifetime value has surpassed the need for traditional one-time transactions.
We only have to consider how Netflix has revolutionized the way in which we consume TV content or how Birchbox has made it possible for the masses to sample luxury cosmetic items, to appreciate how digital innovations have changed consumption trends.
With many companies across several industries discovering the true value in recurring revenue models, there are a few which stand out in showcasing profitable long-term relationships with their customers and creating tailored pricing models and promotions, rather than ephemeral one-time communications through a single sale.
Unilever acquired Dollar Shave Club for a reported $1 billion, a subscription start-up service, which has allowed them to go Direct to Consumer and compliment retailer-based revenues.
Sky owned NOW TV is a prime example of a subscription service that empowers the customer; allowing customers to access OTT content leveraging flexible pricing packages, offers and incentives.
Amaury Group’s L’Equpe have launched a range of recurring models, from all you can eat subscriptions to pre-pay micropayments and bundled articles.
You and your business could also capitalise upon digital innovations to foster long-term relationships in the age of the customer. During the webinar Ben and Lily will discuss these examples and more.
The Benefits of Hybrid Models
Most importantly Ben and Lily will discuss the importance of adopting a variety of digital models. One-time sales or fixed rate subscriptions are giving way to hybrid models that blend one-time, subscription, and usage-based billing.
The Importance of Subscription Transparency
Subscription business models aren’t for every company, but recurring relationships are. It is vital that businesses prioritize transparency in their digital services and offer value, a fair billing policy and simplicity.
Companies are no longer just manufacturers or distributors, they must now become software and analytics companies according to the CEO of General Electric, Jeff Immelt.
Your subscription model needs to offer something unique and be a hybrid for ultimate success. Dollar Shave Club, Now TV and L’Équipe have demonstrated the benefits derived from their hybrid subscription models and customer focused strategy.
To find out more about what Ben and Lily think are vital for the success of a subscription business model sign up to our unmissable live webinar here