10. Evolving Consumer Expectations
Ownership Access
The Access Generation:
â—Ź A growing cohort of mobile, technically
savvy young people who value access over
assets.
â—Ź They prefer to stay nimble and rent a home
rather than own one; listen to a song on
Spotify rather than buy it from iTunes; or
subscribe to Oysterbooks or Scribd rather
than buy from a Barnes & Noble store.
26. In addition to providers of software, books, and
music, companies in media & entertainment
(News Corp, HBO); consumer services
(TripAdvisor, Touring Club Suisse); telecom &
utilities (Telstra, YP); financial services (AXA);
healthcare (ThermoFisher Scientific); education
(lynda.com, Kaplan); farming (FarmIQ); and,
through the innovations around the Internet of
things (IoT), even manufacturing (General
Motors, Swann Communications, NCR, Schneider
Electric) are pivoting to or starting up as
recurring revenue subscription businesses.
Evolving Market
28. Why This Subscription Hype?
If done right, the subscription model offers regular, predictable cash flows to
businesses that can keep their customers happy. The lifetime value of
customers is also much higher. If companies deliver value, customers buy
again and again, instead of just once. Startups don’t have to spend money on
marketing or advertising to convince that customer to buy again, so the return
on the initial investment is far better. Businesses keep the customer through
quality of service and experience, rather than spend. In order to do so, however,
businesses have to shift their focus from individual transactions to creating
and nurturing long-term relationships with their customers.
29. If done right, the subscription model offers regular, predictable cash flows to
businesses that can keep their customers happy. The lifetime value of
customers is also much higher. If companies deliver value, customers buy
again and again, instead of just once. Startups don’t have to spend money on
marketing or advertising to convince that customer to buy again, so the return
on the initial investment is far better. Businesses keep the customer through
quality of service and experience, rather than spend. In order to do so, however,
businesses have to shift their focus from individual transactions to creating
and nurturing long-term relationships with their customers.
Why This Subscription Hype?
30. If done right, the subscription model offers regular, predictable cash flows to
businesses that can keep their customers happy. The lifetime value of
customers is also much higher. If companies deliver value, customers buy
again and again, instead of just once. Startups don’t have to spend money on
marketing or advertising to convince that customer to buy again, so the return
on the initial investment is far better. Businesses keep the customer through
quality of service and experience, rather than spend. In order to do so, however,
businesses have to shift their focus from individual transactions to creating
and nurturing long-term relationships with their customers.
Why This Subscription Hype?
31. If done right, the subscription model offers regular, predictable cash flows to
businesses that can keep their customers happy. The lifetime value of
customers is also much higher. If companies deliver value, customers buy
again and again, instead of just once. Startups don’t have to spend money on
marketing or advertising to convince that customer to buy again, so the return
on the initial investment is far better. Businesses keep the customer through
quality of service and experience, rather than spend. In order to do so, however,
businesses have to shift their focus from individual transactions to creating
and nurturing long-term relationships with their customers.
Why This Subscription Hype?
32. Why This Subscription Hype?
If done right, the subscription model offers regular, predictable cash flows to
businesses that can keep their customers happy. The lifetime value of
customers is also much higher. If companies deliver value, customers buy
again and again, instead of just once. Startups don’t have to spend money on
marketing or advertising to convince that customer to buy again, so the return
on the initial investment is far better. Businesses keep the customer through
quality of service and experience, rather than spend. In order to do so, however,
businesses have to shift their focus from individual transactions to creating
and nurturing long-term relationships with their customers.
Zuora
38. Models Of The Subscription Business
1. Membership site model (i.e. online academy, e-learning)
2. All-you-can-eat content model (i.e. Spotify)
3. Private club model (i.e. investment clubs)
4. Front-of-the-line model (i.e. Disneyland VIP)
5. Consumables model (i.e. Dollar Shave Club)
6. Surprise box model (i.e. Birchbox)
7. Simplifier model (i.e. household maintenance)
8. Network model (i.e. Whatsapp)
9. Peace-of-mind model (i.e. home security)
40. Subscription vs. Membership?
Subscription = A financial agreement to consume a service or product
Membership = An attitude, connection, emotion, a "neighborhood" for
its ideal customer.