As people consume more and more subscription services in their daily lives, they are more open to (if not expecting) similar models from their business partners. When a product or technology gains transaction in the home, it’s a sure bet that sooner or later it will expand its reach. In other words, the Subscription Economy is everywhere from B2C to B2B. And the numbers prove the point: according to the Subscription Economy Index (SEI), in the past eight years, subscription businesses have grown 400%.
Though not every B2B company is ripe for a transition to subscriptions, there are definitely more that are than aren’t. Making the shift to services requires you to look at your B2B business with fresh eyes. To help, we’re going to take a deep dive into 12 data-driven practices you’ll want to keep in mind as you assess your company’s viability in the Subscription Economy. Six practices that can be adapted from the B2C world (“borrowed” from those companies whose DNA is in selling direct to consumers), and six practices that pose new opportunities specifically for B2B companies.
12 data-driven best practices for subscription monetization from Michael Mansard, Principal Director Subscription Strategy & EMEA Chair of the Subscribed Institute at Zuora. Strategies include those adopted from successful B2C companies as well as new monetization strategies unique to B2B. What you’ll learn:
- Successful monetization strategies from Spotify, Zoom, Atlassian, Fender Play, Slack, Apple, Airbus, and more
- The importance of metric-based vs flat-fee pricing Using automation to drive subscription growth
- Monetizing an ecosystem to generate additional recurring revenue streams
- Aligning with channel partners around a subscription model
- How enabling subscription flexibility drives conversion, adoption, expansion, and retention
- PLUS: A B2B Pricing and Monetization Quick Guide to getting started!
(Chapter excerpt from the new book, Industrial Subscription Economy, by Stephan Liozu.)