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When we talk about Subscription Economy, we are talking about a new business model that involves more and more companies, creating a break with the past.
A revolution that involves us more and more as consumers, for example having recourse to subscription systems for music and films, and which is ever more spreading.
As they are, the application possibilities of the model are endless and the only limit, at least so far, seems to be imagination.
In short, it is a new way of shopping that is customer-focused and less product-oriented, in sharp contrast to more traditional business models. All this can take place in different forms, depending on the type of service or product offered.
The customer subscribes for a certain period of time and during this period benefits from all the contents available in the offer.
From a business point of view, Subscription Economy means implementing a business model that generates value through customer relationships and turns subscriptions into recurring and predictable revenues.
It is necessary to establish solid relationships with clients in order to be able to strategically decide which services or products to offer them.
This enables to forecast revenue growth for the future in a simpler way and monitor the quality level of the relationship.
Moreover, in the long term, Subscription models reduce sales costs, as customer relationships are no longer measured on one-off transactions.
For other companies, the transition to this economic model goes through an internal reorganization process of the value chain of products and services. Therefore, the proposals and solutions of a world reference player such as Zuora enable companies to manage the transition from the old to the new model in an absolutely progressive and effective way.
It’s time to say that the main question about Subscription Economy is not whether it will be an interesting model for my company, but when it will definitely enter my company.
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