The world is moving from products and services to subscriptions, favouring access and transformations over ownership and deliverables. The advantages of a subscription model are many, including: Predictable revenue; not selling services, but creating annuities with a lifetime value that far exceeds whatever you paid to acquire them; collective knowledge of your customers, which is a competitive advantage that cannot be duplicated; the customer relationship is at the center of the firm; not pricing a product or service, but rather a series of customer transformations; it is easier to predict demand and plan capacity more effectively; results in a higher valued firm at exit. For the customer, it provides peace of mind, convenience, recurring value, and a frictionless experience.
Learning Objectives
- Identify strategies utilized by businesses that have made the transition to a subscription-based model
- Plussing your offering—only uncommon services command premium pricing
- The Revenue Question: What are you asking your customers to pay for?
- Pricing the relationship and the portfolio
- The three strategies to pivot to the subscription business model
Implementing a subscription business model for firms is hard work and not for everyone because it requires professionals to think differently than they have in the past about what it is, exactly, that customers value and what you are asking them to pay for. Join Ron Baker, founder of VeraSage Institute, and author of Time’s Up!: The Subscription Business Model for Professional Firms, for a thought-provoking session on why and how the subscription business model will be the firm of the future.
