Subscription-based business models have seen exponential growth over the last decade. The growth of this recurring revenue business model, where a subscriber commits to repeatedly pay for a good or device for a fixed or indefinite timeline, has been caused by the shift from the one-time selling of physical products to selling digital services on a subscription basis. The first phase of this transformation was led by “digitally native” organizations, typically B2C, that have only ever offered services via subscription. Although a large market in its own right, it is still dwarfed by businesses selling physical products. But this market is also changing, as more and more traditional organizations transition some or all of their revenue to the subscription economy. Ventana Research asserts that through 2023, fewer than half of organizations will have the correct technology in place to support such a transition. This Analyst Perspective looks at some of the key implications of this transition and what it means for technology choices as companies move toward a subscription management approach to overseeing the subscribers and usage of their products and services.
Topics: Sales, Customer Experience, Office of Finance, Voice of the Customer, embedded analytics, Analytics, Business Intelligence, Collaboration, Internet of Things, Contact Center, Product Information Management, Price and Revenue Management, Digital Commerce, Enterprise Resource Planning, ERP and Continuous Accounting, natural language processing, robotic finance, AI and Machine Learning, revenue and lease accounting, subscription management, agent management, intelligent sales, sales enablement