B2B Customer Success Management Meetup hosted by AFSMI German Chapter

veröffentlicht am 22.08.2018

Subscription Based Economy: What is it, how does it affect service business?

After the participant introduction, we started with the topic of this evening “Subscription Based Economy”.

Frank Föge, a special guest from Zuora introduced us on the story of “Subscription-Based Economy”.

He provided a lot of background information, showed and explained examples and talked about the future of subscription-based economy. He has been using and explaining in details a lot of information from the bestseller book “Subscribed “by Tien Tzuo and Gabe Weisert and added even more thoughts from his CEO Tien Tzuo.

After his excellent presentation we started a feedback session and discussion about the impact, opportunities, challenges, risks and implementation strategies for our service business.

Key learnings:

Subscription Based Services are outcome-based solutions where ownership of products moves away from the customer. This is in line with the new “share economy” trending. It definitely requires additional new business models. These models require cross functional organizations without financial and organizational silos.

The total Organization will be responsible and accountable for the P&L which is driven on the customer needs and company deliverables on services and beyond.

As an example: GE, IBM, KOMATSU and other IoT Leaders tackle services under “SUBSCRIPTIONS”.

Definitely new Customer Success strategies are required and additional new roles of Customer Success Management are essential. This trending requires additional information, investments and financial processes and will change services offerings and pricing beyond the overall service-delivery processes. Key is the agility to adapt service elements and pricing on the fly to keep continuous focus on customer success.

Key benefits for the customer are financially reduced CAPEX, higher productivity and more time to focus on his core competence

In summary, the “subscription based” economy will further improve productivity by giving companies more time to focus on their core competencies and reduce complexity for services they can buy and easily control based on a subscription-based service. Once again, an excellent evening with a lot of new information and excellent feedback from all participants

For further literature we recommend:

  • „Subscribed: Why the Subscription Model Will be Your Company’s Future – and What to Do About it “, Tien Tzuo
  • „The Membership Economy: Find your Super Users, Master the Forever Transaction, and Build Recurring Revenue“, Karen Baxter
  • „Technology as a service playbook”, Thomas Lah and JB Wood
  • „Service - Die Wüste lebt“, Brandeins 07/18
  • „Service Strategy in Action: A Practical Guide for Growing Your B2B Service and Solution Business“

Our next meeting will take place 24th October at same location at VDC with subject: "Online Marketing – For Service Business."

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