Any businessperson will tell you that predictability, stability and flexibility are critical in terms of their ability to plan for the future, manage for profitable growth and please stakeholders. It is why in a world where the only constant is change, especially in terms of the delivery of products and services online, having recurring revenues generated by subscription services has become not just a critical part of the mix but paramount. After all we live in a time where customers not only have access to instantaneous options but are increasingly fickle. Those customer need to be locked-in, their revenue capture in an optimal manner and their loyalty cemented.
No matter what the industry, from publishing to content storage, subscriptions give managers a peace of mind that is much less volatile and more predictable than one-off sales, or relying solely on advertising revenues to support “free” services. They give them recurring revenue.
As everyone struggles to adopt the dislocations being caused by the Internet, and attempts to monetize online capabilities that can ameliorate early actions like unlimited data plans in the wireless industry which now must be rethought as revenues have not kept up with CapEx and OpEx needs and hence have called into question long-term economic vitality, there has been a rush to explore and deploy recurring revenue business models. The reasons are obvious, compared to companies that are heavily reliant on one-time sales, recurring revenue solutions provide predictable revenue streams, the ability to scale revenues with costs, lower cost of sales, and yield higher lifetime customer value.
The question that arises is what is the right recurring revenue model for your business and to whom can you turn to for expertise and assistance in the selection and deployment of a solution that addresses your company’s unique needs?
As a little bit of background, it is important to know that there are three commonly used recurring revenue models:
- Subscription plus usage
Each approach makes sense in different situations since they provide different advantages not just for the service providers but for customers as well.
Want to learn more? I invite you to join me and experts from Aria (News - Alert) Systems and The FactPoint Group on Thursday, April 26 at 2:00 PM EDT for an insightful webinar, “Picking the Right Recurring Revenue Model: Would you rather be Netflix or Blockbuster?” Not only will the details of each of the three models above be described, but various pricing “tactics” that can be used in conjunction with these models such as “freemium,” pre-paid, tiered and unlimited usage will also be addressed.
As importantly, you need to know not just what the options are, but which one is right for you. This means understanding the importance of billing automation and flexibility, what to look for in a recurring billing platform, and what important adopters have learned from their experiences.
Best practices in business usually start with getting as much quality information as possible before making a decision. The webinar is a great resource for anyone seeking a monetization solution that produces predictable, scalable, sustainable recurring revenues that can be customized to fit your specific needs.
Edited by Jennifer Russell