Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It

Then we have the Acquire subsystem, which encompasses the so-called buyer’s journey. How does this potential subscriber make decisions? What are their criteria for success? What are their alternative solutions? What are their potential objections? Who do they have to check in with: their spouse, their family, their boss, their CFO, their team? How

Service-level agreements are replacing bills of sale.

The Life of Pablo a minimum viable product. That may sound like a pejorative term, but a minimum viable product is actually incredibly important. Only after it gets something out in the market can a business gather customer feedback and use this data to iterate and improve in a continuous deployment cycle. The MVP is a defining principle of cloud s

Borrowing from the retail sector, they score every one of their readers on the multiple of three factors: recency (when did they last visit?), frequency (how often do they visit?), and volume (how many articles have they read?). Low scores indicate churn risks that their promotions group can approach with discount offers.

They allow them to give their customers what they actually want—the outcome, not the product. The milk, not the cow. That’s the story of Komatsu and Caterpillar in the construction industry. And this is why we believe that every company has the potential to reinvent and thrive in the Subscription Economy.

In the old world, you could grow by doing three things: sell more units, increase the price of those units, or decrease the cost required to make those units. In today’s world, you have three new imperatives: acquire more customers, increase the value of those customers, and hold on to those customers longer.

At its heart, usage-based billing is a way of quantifying value. The goal is to let customers pay for the value they need. The best pricing strategy will let you put a number on the metric that customers value most, based on how they actually use your service. This is commonly called a “value metric.” Simply put, a value metric should do three thin

Companies typically wait too long to go international. It’s a legacy of old thinking. The old way is anchored on geographical and political boundaries. But the world is different now; it’s really based on language.

Autodesk was suddenly swimming in all sorts of new user data as a result of reengineering their software. So what did they do with it? They shared it with their resellers. Every reseller got relevant information about their customers—behavioral data they hadn’t seen before. Autodesk didn’t cut out the resellers—in fact, they doubled down on their c