Recurring software and services offers provide value in the longer term by aligning your business with the direction both vendors and consumers are heading in. Tom Saunders looks at how recurring offers can help partners meet today’s customer expectations and align with vendor evolving strategies.
The world is changing and becoming increasingly digitised. Customer demands are changing as well. They want financial flexibility and the convenience of paying by subscription or only for what they use. They want technology benefits with minimum IT involvement. Accelerated technology solution implementation. Variable, lower risk Opex purchasing models. And supplier-managed or optimised technology.
Enterprises in particular no longer want complex, on-site software deployments. They expect software that can be quickly and easily upgraded, managed centrally, changed when required and connected to the cloud as workers become increasingly mobile.
To meet these changing expectations, recurring offers are a win-win for you, the vendor and the end user. With their predictable and stable revenue streams, they give vendors the freedom to stop focusing on billing and start focusing on providing valuable customer experiences. They allow for scale, a longer-term relationship and a level of data previously unheard of that allows for a personalised consumer-centric approach to balancing customer acquisition, monetisation and retention. If we look to the future, Gartner has stated that “by 2020, all new entrants and 80% of historical vendors will offer subscription-based business models”.
For end users, recurring offers represent convenience, flexibility and control, as well as lower upfront costs. Like with most things in life, a happy customer is a repeat customer, giving rise to the highly sought after ‘automatic customer’. These automatic customers spend almost twice as much as one-off customers over their lifetime, and champion your services to others as their loyalty grows.
The world may be changing, but what hasn’t changed is customers still want successful business outcomes, and recurring offers give you a new way to engage with end users with flexibility and speed to deliver successful outcomes in today’s market.