EVP & Chief Sales and Marketing Officer at CSS Corp, responsible for driving business growth and providing strategic leadership.
The global marketplace has evolved in recent years, becoming more utility-based than ever before. The rise of the subscription economy has been one of the major developments to illustrate this change.
The subscription model, under which companies shift from selling products to selling services, has many advantages over traditional business models. While the trend was initiated by business-to-consumer (B2C) companies, the subscription-based model is now being adopted in earnest by many business-to-business (B2B) enterprises.
The Emergence Of The B2B Subscription Model
Simply put, the subscription model allows customers to pay periodically for the product functionality they need without having to buy products in full.
Today, with the rise of the on-demand economy, many business customers have come to expect anything as a service (XaaS). Subscriptions make it cost-effective and efficient for businesses to access resources without having to invest the capital to own them outright. It promotes agility and positions businesses to leverage the rapidly advancing world of technology.
Subscription models can be equally alluring to B2B services providers. By investing optimally, you can provide high-end products to your customers for a periodic subscription fee, ensuring consistent revenue and recovering investments steadily. Rather than chasing one-time sales, this model allows you to bring in a predictable, stable revenue in each billing period.