The subscription economy is a game changer and is becoming a strategic success factor for companies. The change from spontaneous and purely usage-oriented buyers to recurring and permanent consumers enables every company to build a lasting relationship with its customers. Regardless of industry and from start-ups to DAX companies, we create the ideal basis for this!
Why buy a car when you can drive a convertible today, a sedan tomorrow and an SUV next week? The younger generation of consumers in particular appreciate the benefits of subscription models. They prefer using services to owning them, which is what makes streaming portals such as Netflix or Spotify so successful. This is because the constantly growing range of services and convenient access to them outweigh ownership. The basic principle is not new. Subscriptions and leasing models have been around for a long time. However, they have now evolved significantly, both in the B2C and B2B sectors. The models have become much more flexible and customer-oriented. The central question for companies is no longer: How can I sell my product better? But rather: How can I further develop my product so that the customer is interested in permanent consumption and takes out a subscription for permanent access?
Lasting customer loyalty
To stay with the "car" example: While the customer becomes the owner of a car with a one-off purchase and an owner with leasing models, they become a user with subscription models. As a user, all services relating to the car, such as maintenance, are included. With leasing models, these services have to be purchased in addition, as an owner anyway. The advantage for the customer is obvious: they have maximum cost control and the flexibility to add or remove products/services according to their needs in terms of scope and duration. Using products and services "as a service" has the advantage for the company offering them that consumers enter into a lasting relationship with the brand or product. You can communicate directly with the customer and respond to their needs.
Take care of your customers,
we'll do the rest!
Subscription models allow you to develop your products in a customer-oriented rather than product-focused way. This creates trust in your services and increases customer loyalty, thus generating more valuable customers. On the other hand, subscription models increase the requirements and complexity of managing and billing your customers. The number of invoices and accounting documents increases and the need for subscription management and regular invoicing increases the complexity in CRM, billing and accounting.
Companies need the right solutions for flexibility in billing models - for products and services of all kinds. The creativity of product managers should not be curbed by restrictions in billing or accounting. Instead, product managers should always focus on the added value for the customer and therefore for their company. With solutions from nexnet, complex subscription management becomes a simple routine. Our solutions include all the relevant components for successful subscription management: from contract and customer management, the payment process and the monitoring of incoming payments to accounts receivable management, we carry out all transactions securely and efficiently.
Article from: ONEtoONE
