Revolutions change the world. Like the industrial revolution, the digital revolution will continue to rearrange the world we live in. The prevalence of high-tech innovations has raised the expectations of buyers. Companies have been forced to refine their business models. Led by Generation Y, today’s consumers prefer experience-oriented services. Decisions are often made in favour of benefits and against possession. Subscriptions are preferred to one-off purchases. Customers and their needs have now become the centre of focus, instead of the product. This means that companies will now have to invest in customer retention.
The subscription economy is booming, and not only in the pioneering US market. Start-ups in particular are increasingly turning to a subscription model to secure long-term customer retention.
Customer acquisition costs can be reduced, and revenues better predicted. Yet even established companies would be well-advised to give serious consideration to the subscription model.
To be capable of flourishing in this new customer-driven economy, agility is required – with regard both to monetizing strategies and to technological infrastructure. Customers want immediate, lasting value and trouble-free experiences. And it doesn’t matter to them how complicated it is for customers to supply these experiences.
nexnet has been working with billing models for over 20 years, and is regarded as an expert in subscription billing. The Berlin-based specialist has used all of its experience in this field to compile the 2020 Subscription Management Report. The report provides comprehensive insight into the subscription economy, describing advantages, challenges and five different kinds of subscription model. Numerous examples of everything that is available today via subscription – both B2C and B2B – throw revealing light on the world of subscriptions. The report is available now free of charge at: www.subscription-billing.de.