
Subscription 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.
Every business seeks to establish a "forever deal" with the customers they serve. They want predictable recurring revenue, direct relationships that avoid middlemen, and behavioural data that allows them to continue planning for the future.
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.