What is Subscription Economy?
To understand the term subscription economy, you need to know what subscription-based selling is. This type of sales model involves recurring payments by customers in exchange for access to a product or service over a period of time. This is opposed to the traditional buy/sell business model, which was built around one-time transactions for a product or service.
Subscription economy describes the trend of businesses shifting from a traditional one-time buying/selling business model to a subscription-based business model. Customer preferences have changed over time, and for businesses to meet the needs of their customers, they need to adapt. One way to do so is by offering subscription services.
Subscription Services vs. Traditional Buy/Sell
With traditional buying and selling, businesses market and spend money on the front-end to obtain a customer for a one-time purchase. After the customer has used the product or service, businesses hope that this customer comes back and purchases for a second time. This process repeats itself until a customer no longer needs your product or service or ends up leaving for a competitor.
Instead of selling things individually, businesses sell a bundle of products or services and allow customers access these goods over a set period of time. Customers tend to find subscriptions more convenient for products or services they will continue to need. Customers also like the customizable and flexible aspect of subscriptions, where they can mix and match offerings to best fit their needs.
How Neocol Can Help
A study in The Economist shared that 51% of the companies surveyed have changed or are in the process of changing the way they price and deliver their products and services. If you believe that implementing a subscription-based service could work with your business, Neocol is here to help.
Neocol knows Salesforce products inside and out, how a product like Salesforce CPQ & Billing can help your business introduce subscriptions successfully. But the great benefit of working with Neocol is that we tailor Salesforce products directly to how your organization will use them best. We believe in learning everything about our customers and working very closely to help them achieve success.
If you are interested in learning how we can help your business apply subscriptions to your sales model, reach out to us today!