The consultancy specialised in
subscription and as-a-Service
business model transformations.
With its proprietary Subscription Action Plan™,
P2S guides your company in conceptualising, building, and launching your own subscription or as-a-Service business model.
What are subscription business models?
Subscription models, also known as "as-a-Service" or membership models are a way of selling a company's offerings - such as hardware, software or services - not as a one-off product but as an ongoing solution that can be charged to customers in a recurring way; including on a subscription, usage, or outcome basis.
It is a major shift in a company's mindset that has the potential to generate dramatically higher value - but which also involves deep changes throughout the company, requiring a thorough business model transformation.
These models focus on customer retention over customer acquisition. More and more companies are making the pivot to recurring models because they want to build deeper and longer lasting relationships with their customers.
Customers have changed – they want usership, not ownership. Customers are happier subscribing to outcomes, rather than purchasing a product with the burden of ownership.
Transform your customers into long-lasting subscribers and generate recurring revenue.
Which type of physical products are you currently selling?
Manufacturing
Equipment-as-a-Service, Industrial subscription, Pay-per-X, Pay-per-Use, Product-Service-Systems, XaaS
Consumer Goods
Curation models, replenishment
models, access models, and rental models.
While subscription models continue to dominate the shift to as-a-Service, a shift is underway toward usage -- or outcome-based -- models.
Four major subscription models for consumer goods exist. Curation models, replenishment models, acess models, and rental models.
Facts about subscription models
5-9x
higher growth rate for subscription businesses compared to S&P 500 companies.
Zuora
8x
(up to) higher company valuation of subscription businesses compared to traditional ones.
The Automatic Customer
5x
higher margins and 2x higher revenues by selling as a subscription vs. traditional one-time sale.
Siemens
+84%
annual revenue growth of subscription models in the manufacturing industry.
IoT Analytics
$131B
projected size of the global subscription market by 2025.
Zuora
57%
of companies want to use subscription models for machine procurement.
VDMA
Why develop a subscription model?
Win-win-win: For you, your customers, and our planet.
Benefits for you (companies):
- new, predictable, recurring revenue streams,
- complementary to transactional sales model,
- higher company valuation,
- monetising complete lifecycle of products,
- more collected data about customers,
- increased customer loyalty (lock-in effect),
- bypassing intermediaries in value chain,
- higher margins thanks to more services,
- sustainable business model,
- strategic differentiation.
Benefits for your customers:
- always a modern or up to date product,
- reduced investment hurdles: many small payments,
- convenience,
- personalised experience,
- exploration and discoverability,
- transforming CapEx into OpEx,
- reduced operational risk,
- flexibility and scalability,
- peace of mind.
Benefits for our planet (sustainability):
- incentive to prolong lifetime of products,
- incentive to design easily repairable products,
- eases access to second-hand market of products, as providers stay the owner,
- incentive to implement end-of-life strategies (reduce, reuse, remanufacture),
- comply with policy makers' regulations,
1-day workshop:
Conceptualising your subscription business model
Are you a C-level director, business strategist or business developer and would like to introduce subscription business models in your company or explore their potential? Then you need to be aware of the necessary subscription basics, i.e. industry success stories, different subscription models, the pitfalls to avoid, and how such a model could work for your company.
Acquire this key knowledge now in our conceptualisation workshop. And in record time: the most important information condensed into 1 day!
This workshop is the first of a series of 20+ workshops (our Subscription Action Plan™) covering all key challenges that need to be addressed when developing a subscription business model. Interactive exercises, examples and best practices from dozens of subscription models are used to step by step conceptualise your subscription business model.
Subscription Action Plan™
The Subscription Action Plan™ includes 20+ proprietary workshops on all key challenges faced when developing a subscription business model.
Each workshop includes theoretical and practical elements. Workshops are based on benchmarks of best practices and common pitfalls from dozens of successful subscription transformations, as well as recent academic literature and research on the industry.
The proposed optimal workshop duration is 9 to 18 months including tailored coaching.
1. Conceptualising your subscription model
We start off by brainstorming how your subscription model could work, including defining your subscription value proposition, your target subscribers, sizing the market opportunity, and testing your subscription concept with your customers...
2. Building your subscription offering
We then build your subscription offering, define your subscription plans and plan durations, the required IT infrastructure, your pricing strategy, drafting your contracts, setting up the adequate financing structure, ...
3. Adapting your company internally and preparing for launch
We then make sure your company is subscription-ready. That includes working on internal processes, defining new roles and responsibilities, building a new KPI dashboard, creating a sales and marketing playbook, training your sales reps, ...
Subscription Experts Ecosystem™
We have seen that successful subscription models have not been implemented alone. For very specific topics and challenges, companies relied on expertise and services from third parties to develop their subscription models.
We created the Subscription Experts Ecosystem™ to provide you access to the right expertise and partners throughout your subscription transformation.
From subscription financing partners, via legal experts in drafting subscription contracts and GTC, to subscription management software, or equipment management software partners.
The Subscription Experts Ecosystem™ counts 30+ carefully selected partner companies.
Our clients
P2S Management Consulting has helped forward-thinking companies develop their subscriptions models.
Industrial manufacturing
Inspection systems
Heating, ventilation, air-conditioning
Audio-visual equipment
Lighting equipment
E-power energy efficiency
Client testimonials
“With P2S’ methodological approach, we managed to launch the project in 10 months. P2S helped us increase our margins by 500% and increase the average project revenue by 150%. Tailored workshops, insights and best practices, putting us in contact with the right partners all contributed to a very creative working atmosphere.”
- Juan Baldo - CEO at Detandt-Simon (Belgium)
They talk about us:
Mechanical Engineering Industry
Resources
Case study:
Ventilation-as-a-Service
Detandt-Simon - Ventilation 4 U
(31.08.2022)
Language: English
Source de financement: Le leasing opérationnel au sein d'un Modèle d'Abonnement
(18.06.2020)
Language: French
Out of the Crisis with a Subscription Model
(25.03.2020)
Language: English
La "servitisation" des produits
La Libre Eco, Belgian newspaper (09.11.2019)
Language: French
Quels modes de financement pour l'entreprise de demain?
Trends - Tendances
(25.06.2020)
Language: French
Subscription Modelle:
"Win-Win-Win"-Geschäftsmodelle
(19.02.2020)
Language: German
Proposer ses produits « as-a-Service » via un abonnement
Le Journal de l'Economie
(26.10.2021)
Language: French
