Growth of the Trend
Consumers are steadily leaning towards more straightforward buying processes. In recent years, there have been numerous examples of the success and increase in subscription-based business models across a wide of array of industries. Fewer and fewer people buy movies, instead they have a Netflix subscription, they no longer buy physical data storage, they use Dropbox, and consumers no longer buy music singles or albums, they pay a monthly subscription for Spotify. These are amongst the most successful companies to adopt the subscription-based model, but are by no means the only ones. Recurly is a San Francisco-based company that guides companies through the process of offering subscription services to their clientele. CEO and co-founder of Recurly, Dan Burkhart, says, “For businesses, it’s peace of mind; for customers, it’s a reprieve from worrying about this stuff themselves.”
In the world of business-to-business (B2B) consumption, it important to be well informed of the changes and trends that occur in the sphere of subscription-based models. While it is currently a popular trend, with an ever-increasing amount of companies adopting the model, it may be especially beneficial to consumers looking for tech-related services. Amongst the most prevalent are Software as a Service (SaaS), cloud-based packages Platform as a Service (PaaS), and most recently, Website as a Service (WaaS).
Key Factors
Cost-effective Solutions: Premium and tailored services catering to businesses and consumers have become increasingly costly. Upfront costs for various services and products can be overwhelming for the budget of a small to medium sized business. However, subscription-based services are certainly a more economical solution. The lack of upfront costs allows customers and businesses with varying budgets to reap the benefits of a consistent subscription service. As a potential consumer of web development services for example, it’s simpler and much more manageable to process that you will only pay from £79 to £200 per month for services and is certainly more gratifying to hear than an upfront cost of £4-5,000 for a typical project.
Boosts Customer Service: The old saying “the customer is always right” is particularly true with subscription-based models. These businesses are designed to provide long-lasting and supportive customer relationships. The idea of the subscription-based business is to create an efficient workflow in which customers can expect steady and dependable maintenance coverage. For instance, a website management project can be particularly daunting for a business owner that lacks technical experience, or that simply needs more time to dedicate to the many other tasks involved with running a successful business. However, the usage of a subscription-based service and website as a service (WaaS) can guarantee that the latest technology and appropriate updates will be implemented. Naturally, a supportive customer service team backs these services.
Hassle-Free Maintenance: The nature of the subscription model allows a business to gradually grow a stronger relationship with its customers. The structure of a subscription-based service enables the customer to test the quality and experience of utilising the service before continuing with a more permanent commitment. The subscription model is applicable amongst various industries and is cropping up in the daily lives of business owners, marketing teams, and managing directors alike. Many companies are often faced with the challenge of ensuring that their technology is reliable and up-to-date. In this day and age, technology is the perfect example of an ever-changing industry that affects the operations of nearly every type of business. For instance, the subscription model for Website as a Service (WaaS) allows a small business’s web design, web development, digital marketing and indeed every aspect to their online presence to be maintained at the hands of a reliable IT partner for an affordable cost, thus allowing the business to focus on what it knows and does best.
Overall Impact on Business
Over the last several years, the subscription-based business model has become a revolutionary element in the way consumers purchase services and has revolutionised many industries and continues to do so. The subscription model applies to consumers across numerous industries. For consumers, signing up for a subscription model makes services and products easier to use than ever. The lack of upfront costs coupled with the hassle-free maintenance and updates that the subscription model provides allows for businesses to save time and money as well. The introduction of Website as a Service (WaaS) is particularly attractive to small businesses that lack an in-house IT department. The subscription model in the case of website design and management enables consumers to “step away” from their project and let the company do the work. Signing up for the WaaS model provides peace of mind for companies in the long term and delivers the most modern and up-to-the-minute website.
