As 2019 ramps up and companies roll out their business plans and strategies for the year, clients may start to wonder how certain trends will affect them. One undeniable trend sure to take over the business world is subscription-based models. Anything from online-streaming to technology platforms to food delivery, subscription models have quickly made an impact in the consumer’s world. According to Stanford Business, the subscription model market has grown from $57 million in 2011 to $2.6 billion in 2016. Being on the receiving end of this all-encompassing service model, how does this benefit the client?
Here are 3 reasons that subscription models benefit clients:
1.No upfront/overhead high costs.
The beauty of subscription models is there are no pricey, one-time overhead cost. The business mindset transitions away from the ownership mentality. Stanford Business’s interview with Tien Tzou, a leading proponent of the subscription model, states, “The reality is ownership is dead; now it’s really about access as the new imperative.” You pay as you go.
Many of these subscription plans revolve around cloud-based models, hence no upfront overhead costs covering hardware. This adds increased integration capabilities while remaining secure. In 2019, cloud security is very strong and data breaches are unlikely.
2. Low monthly access fees.
In a subscription model, access is key. This model allows clients to access the appropriate resources for their needs at an equivalently appropriate monthly fee. Such a system means clients are not spending excess money on superfluous accessories and applications. They pay for a subscription from month to month for a plan that covers their needs, making adjustments as their business grows and changes.
3. Company responsiveness to customers’ needs.
This model demands constant upkeep and improvement. Moving away from ownership means that clients expect good service and improving product features. Forbes explains the advantages of subscription based software, “Adding new functions and innovating based on customer feedback is now a constant process.”
As January nears an end, consider how your company’s processes could be improved through a subscription based model. Software subscriptions may just be the way to go.
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