As consumers adopt new technologies and adapt their lifestyles to take advantage of what it can do for them, they are gravitating towards companies willing to shift the way they have always done business in order to provide services more suitable to tech savvy people. This session will discuss what is driving the growth of The Subscription Economy, how new business models are creating better opportunities to extend relationships with customers, what metrics are being used to measure the health of a subscription business, and share case studies of companies that have successfully made the transition product based businesses to subscription offerings.
4. The
Evolu-on
of
Customer
Behavior
80%
of
execu-ves
said
their
customers
are
changing
how
they
obtain
access
to
goods
and
services”
Economist
-‐
2013
6. Making
the
most
of
a
flee-ng
moment
"The
aLen-on
economy
is
not
growing,
which
means
we
have
to
grab
the
aLen-on
that
someone
else
has
today."
@brentleary
7. Making
the
most
of
a
flee-ng
moment
@brentleary
"You
can’t
buy
aLen-on
like
you
used
to…"
8. Speed
THRILLS.
Lack
of
it
KILLS
@brentleary
300
Milliseconds
to
connect
ac/ons
to
experiences
9. What
is
the
9
By 2015, 35% of Global 2000 companies will generate revenue through
subscription-based services and revenue models.
1999! Today
Subscrip-on
Economy?
BUY NOW SUBSCRIBE
10. 1
0
Dollar
Rubber
Club
Condoms
Salon
Media
StudyDog
Child
Learning
Disney
Content
Bespoke
Post
Luxury
Items
Savvy
Money
Finances
Spice
Guides
Date
Idea
Spo-fy
Music
Businesses
Can
Subscribe
To
Anything
NeZlix
Movies
VMWare
Virtualiza<on
Google
Apps
Apps
Amazon
Infrastructure
Dex
One
Marke<ng
Intacct
GL
DelTel
Phone
System
Concur
Travel/Expense
CRM
ServCorp
Virtual
Office
Consumers
Can
Subscribe
To
Anything
11. Why
Subscrip-ons?
• Technology
• Demand
• FAIR
Business
Models
• Opportunity
to
stay
connected
to
customers
19. The
Birth
of
a
Subscrip-on
Company
“Before
we
knew
we
were
going
to
be
a
marke-ng
company,
we
knew
we
were
going
to
be
a
subscrip-on
company.”
Dharmesh
Shah
-‐
Hubspot
20. The
Birth
of
a
Subscrip-on
Company
“it's
-me
to
think
about
business
as
a
collec/on
of
customers
and
find
ways
to
drive
loyalty,
repeat
purchases,
and
greater
revenue..”
Brian
Bell-‐
CMO
of
Zuora
21. Become
a
Data
Geek...not
a
HiPPO
Subscrip-on
Companies
are
Data-‐Driven
26. Data-driven Subscription Businesses Align by
Buyer Persona
Owner Oscar Team
(1-50 employees)
MidMarket Mary Team
(50-500 employees)
Enterprise Erica Team
(500+ employees)
Group Sales & On-Boarding 1-to-1 Sales & On-Boarding Advanced Sales & On-Boarding
Oscar
Marketing
Oscar
Sales
Oscar
Services
Mary
Marketing
Mary
Sales
Mary
Services
Erica
Marketing
Erica
Sales
Erica
Services
@brentleary
35. The
Subscrip-ons
Require
Different
Approach
to
Business
• Focus
on
Mone-zing
Customer
Rela-onships
vs.
Selling
Units
• Pay-‐as-‐you-‐Go
Pricing
Plans
• B2Any:
Sell
to
Consumers
&
Businesses
36. Prime
Time
• Over
10
Million
Members
• Membership
doubled
in
last
2
years
• Es-mated
to
grow
to
25
Million
members
by
2017
*
Morningstar,
2013
37. Prime
Time
• Increase
their
purchases
on
Amazon
from
$400
a
year
to
$900
a
year
aEer
they
join*
• Spend
130%
more
than
regular
Amazon
customers*
• May
be
responsible
for
as
much
as
20%
of
Amazon’s
overall
sales
in
the
U.S
(BusinessWeek)
*
Prac/calEcommerce.com