Subscription models

Subscription models, also known as "as-a-Service" or membership models are based on the idea of selling a product or service to receive recurring revenue. They focus on customer retention over customer acquisition. In essence, subscription models focus on the way revenue is made so that a single customer pays multiple payments for prolonged access to a product or service instead of a large upfront one-time payment.

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More and more companies are making the pivot to subscriptions 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.