A single, great idea has often been the spark for the birth of new companies and businesses. It could be identifying a need or a want in an area of day-to-day life, or experiencing a problem first hand and figuring out a way to solve it. In either case, all successful business ideas developed from these ideas into models, before they became reality. The term ‘business model‘ is used to describe the way a business behaves, and it lays the groundwork for a solid business plan. While there are possibly an infinite number of ways to model a business, over the last few years the subscription business model – also called a recurring revenue model – has gained worldwide popularity.
On 8 December at 12pm we will be hosting a webinar that will show you how to create a subscription business, which is based on the widely used recurring revenue model. The webinar will go through the key requirements for running a successful subscription business, as well as a demonstration of Zoho Subscriptions, outlining ways to integrate these key methods into Zoho. There will also be an opportunity to ask our demonstrator any questions you may have about Zoho Subscriptions.
A subscription model based on the idea that customers prefer to pay a recurring price for a product or service that they regularly need, which in turn creates a predictable revenue stream for the company. Amazon uses this model, as does Netflix, Microsoft, and other SaaS companies This model can be highly beneficial to the long-term success of your business, assuming that you understand your method. Here are just three reasons why you should attend our webinar, and consider whether a subscription-based model is right for you.
1. Increased customer retention and stronger customer relationships
The subscription-based model is customer focussed. This means that customers are at the centre of how the business operates. When you provide an ongoing service relationship with your customer, as is the case with a subscription based model, you are letting the customer know that you recognise their needs. It has become clear to customers that this kind of service is cost-effective, and that it gives them more control over the service they are receiving – they can cancel their subscription at any time, or decide to change the length of the payment period.
This flexible business model also has the potential to increase customer retention. While the customer receives a service that suits them, you receive the added benefits of building customer data and knowledge about the kinds of services that they need. You can use this knowledge to tailor what you provide even further to help them, again strengthening customer loyalty and trust. Over the past few years, the way businesses ‘do business’ with customers has changed. People have more power over the products and services they buy or don’t buy. This change has led to the increased popularity of the recurring business model, and companies have been quick to take notice and adapt so as not to be left behind.
2. A predictable and reliable revenue stream
When you model your company on a subscription based system, you create a predictable and reliable revenue stream for your company. Establishing long-term financial relationships with customers allows the company to begin each month, or possibly each year, with sure footing. The fact that this is a recurring relationship that has the potential to become stronger over time, means having a more reliable path set out in front of your business. Profits keep businesses alive, and when you combine a subscription based model with the revenue stream, your business can breathe easier.
3. Flexibility for the future
There are a number of uncertainties that can very quickly and suddenly affect the running of a company, and one of these is the constantly evolving needs of customers. If your company cannot adapt and deliver, then customers will find a service that can. Changes in customer loyalty can stall company growth, and affect this growth in the long-term. Working as a subscription business requires your company to be flexible. You need to ensure that the pricing, products and services remain adaptable in order to respond to customer’s evolving needs. While this might sound like extra work for the business, what you are actually doing is integrating a safety net for the future into your business structure.
Zoho Subscriptions offers a streamlined solution for subscription based businesses. Since its launch in 2014, Zoho Subscriptions has received consistently positive reviews and high user satisfaction scores. This service offers high-quality support for your subscription business which can be easily integrated into its other functions.
Target Integration’s webinar, ‘5 Ways to Create a Successful Subscription Business’, takes place at 12pm on December 8. Registration is required, and we look forward to talking to you.