B2B subscription models: A guide to future-proofing your enterprise
B2B subscription models can offer the same bottom line and loyalty benefits as their B2C counterparts, and enterprises are taking notice.
A long time ago, I was involved in a partially-successful attempt to build a subscription billing system for an internet start-up in the early days of web business. This experience left me convinced that subscription plans – specifically the free-model version – would win the internet, as nobody had the time nor expertise to deal with subscription billing.
This is not the case anymore.
When you decide to start offering a subscription to your services, there are a variety of companies who offer convenient, cloud-based recurring billing solutions.
How to start building subscription plans for your business
In the beginning, you may prefer to go with a simple subscription model by selecting a set of features and a price point that would be attractive to the biggest customer segment.
While this is a good plan to start growing your subscription plans, it leaves a lot of money on the table because some of your customers will be willing to pay extra for advanced features.
There are also price-sensitive customers who would love to use your service if you can offer them either a cheaper plan or a pay-as-you-go option.
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Scaling the future of subscription plans: Simple payments, multiple options will be required
As industries develop, subscriptions plans have become more complex. Netflix has started with a single plan, and is moving now to multiple options.
The telco industry is also a great example of how complex subscription offering can be in a mature and highly competitive market.
Telco trends: Vision for the telecom industry
Telco influences nearly every aspect of our lives, from how we communicate to how we commute, how we work, and how we make purchases and relax.
To maximize revenue potential via subscription plans, you should be able to:
- Define complex subscription plans that cater to different segments of your market
- Offer a flexible combination of recurring and one-time prices
- Offer a number of additional services with pay per usage charges
In addition, you will need a robust entitlement and metering solution to control access to your services and generate per usage charges.
Subscription business model offers a lot of ways to define flexible offerings that fit the needs, budgets, and desires of your customers, and businesses must rapidly adopt subscription models to thrive in the future.
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