B2B Subscription Model: What's Changing?

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mahindra
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Joined: Tue Dec 03, 2024 3:56 am

B2B Subscription Model: What's Changing?

Post by mahindra »

For some time now, B2B companies have been combining the sale of additional services with the sale of the physical product in various ways: by associating services such as installation, after-sales assistance, maintenance and repair ( hardware add-ons ) or software updates that rely on the physical product to improve the user experience of the product ( software add-ons ).

Whether it is software, hardware, services or data, by moving to the subscription model a company chooses to monetize value rather than ownership .

Anything as a Service
In recent years, the digital transition has given companies a france phone number library promising opportunity: the sale of services as a replacement for the sale of physical goods has contributed to the emergence of various solutions on the market , including:

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Software-as-a-Service (SaaS), one or more programs or applications;
Platform-as-a-Service (PaaS), a combination of hardware and software;
Infrastructure-as-a-Service (IaaS), IT infrastructure for storage and hosting;
Device-as-a-Service (DaaS), the provision of computing devices such as PCs and smartphones.
Thanks to this new business model, which considers anything as a service (XaaS), the technology allows to offer customers a suite of integrated services within a real ecosystem.

The customer will thus see reduced costs and risks associated with ownership and use of the asset, but will also be encouraged to pay more, by virtue of the flexibility and scalability of variable costs that characterize the subscription business model.

The specificity of B2B sales , characterized by a greater number of stakeholders in play and longer negotiation times, makes it even more necessary to strategically rethink the factors at play before moving to a subscription model. So where to start?

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The Ingredients of a Successful B2B Subscription Model
Customer Experience
Offer your customer multiple subscription plans so they can select the one that best fits their needs. Consider further customizing your offering, such as Enterprise plans for large organizations.

Revenue Management
Break down subscription fees into different usage bands , factor in any extra costs and custom plans, and track them with cutting-edge reporting software.

Contract Management
Give your customer the ability to renew, suspend, and change their subscription at any time during the billing cycle, along with a solid marketing strategy to keep in touch during “breaks” from the service;

Service Management
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