Although selling magazines, newspapers, and software via subscription is commonplace, it’s now a revenue model for everything from luxury cars to entertainment. This subscription-based activity has become the new norm, and customized delivery is key. One-size fits all is no longer relevant.
Just look at the growing bevy of TV streaming services. In a nutshell, customers want the best experience possible and demand instant gratification. One look at the numbers, and it’s clear that this mindset is here to stay.
- 80% of SaaS vendors shifting to subscription services by 2020
- 3000% growth in retail box subscriptions
- 10% of all new vehicle sales will be subscription-based by 2025
- 35% of active subscribers have three or more subscription offerings
“We’ve entered the era of Subscription 2.0. The business opportunity to build recurring customer relationships and predictable revenue streams is tremendous. Yet, the changes companies need to make can be daunting,” says Des Cahill, Oracle Vice President of Product Development.
From a technology standpoint, moving from a one-off product transactional model to subscription selling can be a challenge. Success depends on having the right systems in place to support complex elements such as pricing, recurring billing, monitoring, revenue management, security and other “monetization” processes.
The features and functionality of Oracle Enterprise Resource Planning (ERP) Cloud and Customer Experience (CX) applications can help your organization adopt a subscription model by supporting end-to-end business processes from order to cash. With Oracle Subscription Management, organizations can operate hybrid product and service/subscription business models on a single, secure, integrated platform.
Oracle + Infovity. Fast Track Subscription Billing and Perpetual Revenue
The key to this model is managing the subscription lifecycle, including renewals, direct and indirect sales, self-service, and service/field sales. Infovity is quickly becoming the go-to Oracle partner for Subscription Billing and Revenue Management implementations based on our Oracle Cloud expertise and varied industry experience. Oracle Subscription Billing for ERP, and Infovity as your implementation partner, can quickly enable you to:
- Introduce and operate a subscription business model for your existing products and services
- Build predictable, recurring revenue models
- Coordinate recurring orders and associated activity
- Initiate and automate billing
- Enhance customer loyalty and ease of doing business
- Interpret subscriber activity and intent using rich analytics that enable you to respond appropriately
Would a Subscription Model Add to Your Revenue Options?
Based on your unique products, services, and business goals, there are many financial aspects to consider. Start by asking the team these questions:
- What projects are coming up next that could benefit from a subscription model?
- Are products charged as a one-time, fixed recurring fee, pay by usage, or a combination of both?
- How would subscription billing across all customer touchpoints improve overall Customer loyalty and engagement?
- How would renewal automation, billing initiation, and subscriber activity interpretation help your organization grow?
Read more about how “Subscription Everything” is the new currency in Customer Experience. Or contact email@example.com to request a review today.