basic thinking 27 November 2019: Since the arrival of Spotify, Netflix and Co. we have come to realize that one-off purchases are a thing of the past. Yet although subscription models have already been a part everyday life for some time now, with the digitalization of commerce, they have become more efficient than ever. With the right solution, companies can design their internal processes more efficiently and win over customers in the long term.
Have you already heard about the so-called Subscription Economy? This term describes a model in which increasing numbers of companies – both in the B2B and B2C segments – react to the changed purchasing- and use-behaviour of consumers.
You’ve probably already noticed this phenomenon: The direct purchase of a product or a service is no longer in demand. Instead of wanting to own something, more and more customers and companies prefer flexible use together with the best possible service. – a transformation that isn’t just limited to the media sector, or to the B2C segment.
For many years, regular and temporally fixed payment for a product has been one of the most important generators of revenue in the B2B segment too – above all for software and digital services.
Subscriptions ensure regular revenues. And customers profit continuously from services such as the latest software licenses and updates. Complicated purchases are thus a thing of the past.
As already mentioned: More and more companies from very diverse areas are using flexible subscription models for their products – from retail items like hygiene and health items for daily use to digital products and services
Many customers prefer these flexible subscription models, with their equally flexible use. And with these benefits all options are kept open: Using products continuously is just as possible as the desire to try out something new and spontaneously decide for something different.
This becomes particularly attractive for customers when they are guaranteed a free or reduced-price test period. In this way, companies can put the software through its paces as an SaaS solution in practical everyday situations and only decide in favour of a subscription when they are completely convinced.
In addition, the customers profit from their freedom. The manageable termination periods and flexible durations keep all the doors open for them – with no pressure to speak of.
The advantages of a successful subscription model can be enjoyed not only by customers. Companies can also profit from them.
Prices can be adjusted quickly
Companies can completely customize their billing and update their prices..
Payment types and flexible bills
Bank transfer, direct debit, or payment by credit card or PayPal: Companies can offer their customers various types of payment.Compiling and sending of bills can also be determined by the companies themselves. – Either by post in the classic way or inexpensively by e-mail as in PDF form.
Companies that use the subscription model can rely on positive growth forecasts. The revenues generated are much more predictable.
With Subscription Management by nexnet you and your company automate the customer lifestyle according to your needs. The comprehensive BPO-solution saves you troublesome work, slims down your internal processes in budgeting and in cost control. At the same time, you ensure a consistently high quality of services
And with the Recurring Payments service, your subscription management is child’s play. In keeping with the motto “Made in Germany”, we develop and operate our solutions exclusively in Germany.
Many prestigious customers from the e-commerce, media, and telecommunication sectors appreciate this advantage over other providers from the USA or China. Yet we still offer all of the features that will allow you to launch a subscription model internationally, too. SOX-compliance, and the handling of different tax rates and foreign currencies are included.