Four Recurring Revenue Imperatives

Revenue Imperatives

Follow the money” is always a good piece of advice, but in today’s recurring revenue-driven market, “follow the customer” may be more powerful. Two recurring revenue imperatives highlight the importance of responding to, and cherishing customer interactions. Technology and competitive advantage influence the final two. If you’re part of the movement towards recurring revenue, here are four essentials to guide your way:

All Revenue Will Become Recurring Revenue. Perhaps not this week or even this year, but the mandate is clear: customers increasingly want what they want, when they want it, and how they want it. Why? An alternative is usually no more than a click away. A recurring revenue model complements quicker speed to market, and helps ensure that evolving customer requests can be quickly met. Already two-thirds of U.S. consumers are moving in this direction, paying one or more recurring bills automatically over time via credit card, while 47% of U.S. businesses have adopted or are considering a recurring revenue model that can respond rapidly to customers.

netflix-subscription

(Image Credit: Statista)

When done right, the move to recurring revenue is highly successful. Just ask companies like Adobe and Netflix, who have already proven that recurring revenue models provide a variety of options for packaging, bundles and promotions to please a wider audience.

Move Beyond Basic Subscriptions. Today, there is still a major focus on basic subscriptions, but smart companies know there is a broader range of monetization options out there that will bring in more revenue for years to come. Customers want choice. They want multiple options when making a purchase. So, in addition to repackaging products and services, consider different pricing tactics for your offers. When you combine recurring revenue models with pricing treatments and features, the options are almost limitless.

Pricing and Packaging Becomes the Product. With digital offerings exploding in today’s marketplace, product differentiation is now more about pricing, packaging and bundling—which can quickly be brought to market, tested, iterated and improved upon. To acquire more customers, try a simple subscription plan with a 30-day free trial or combine methods to create a family plan with activation fees, standard subscription pricing, overages with pricing tiers, and usage rollovers. Looking to increase your share of wallet from existing customers? Test usage-based plans that feature tiered usage and discounted cross-sell opportunities. Are you trying to differentiate from the competition? Try a usage plan that offers tiered discounts based on the purchase of defined sets of products.

The right monetization model can accelerate your business strategy. The ability to quickly define and deploy new models or pricing tactics can help you stay ahead of the competition. Before you take a deeper look into your product catalogue for new opportunities, make sure your current billing system can support multiple pricing tactics, starting with the four listed in our recent infographic.

Accelerate Speed to Market. It’s been quoted that “speed is the new black”. MGI Research indicates that go-to-market speeds will increase by 40% through 2020. Already today, product and service development times have decreased to an average cycle of 2-3 weeks. Products are being developed faster than they can be monetized. In order to keep up and be successful, companies need to remove the billing bottleneck, as well as other operational roadblocks that stall product delivery

In the next 5-10 years, we’ll see an amazing transformation where consumers will increasingly leverage technology to empower their purchasing. In light of this, companies have two choices: provide inspired services at the speed of market demand or fall to competitors who can. The choice is yours.

Tom Dibble

Derrek Schutman
Implementing Digital Capabilities Successfully Building robust digital capabilities can deliver huge benefits to Digital Service Providers (DSPs). A recent TMForum survey shows that building digital capabilities (including digitization of customer experience and operations), is the ...
David Loo
The Long-term Costs of Data Debt It’s no secret that many of today’s enterprises are experiencing an extreme state of data overload. With the rapid adoption of new technologies to accommodate pandemic-induced shifts like remote ...
Alex Vakulov
Ransomware Database Targeting The scourge of ransomware is undoubtedly the most severe cyber security concern for home users and organizations these days. It revolves around taking important data hostage and demanding money, usually hard-to-trace cryptocurrency ...
Gilad David Maayan
What Is SSPM? SaaS Security Posture Management (SSPM) is a set of security tools that an organization’s security team can use to gain visibility and manage security for their Software as a Service (SaaS) applications ...
Jonathan Custance
IoT –  Part of Your Essential Kit Jonathan Custance, Co-Founder of Green Custard outlines how industrial organisations can leverage IoT to dramatically reduce their carbon footprint  Technological progress and environmental sustainability have always been at ...

SECURITY TRAINING

  • Isc2

    ISC2

    (ISC)² provides IT training, certifications, and exams that run online, on your premises, or in classrooms. Self-study resources are available. You can also train groups of 10 or more of your employees. If you want a job in cybersecurity, this is the route to take.

  • App Academy

    App Academy

    Immersive software engineering programs. No experience required. Pay $0 until you're hired. Join an online info session to learn more

  • Cybrary

    Cybrary

    CYBRARY Open source Cyber Security learning. Free for everyone, forever. The world's largest cyber security community. Cybrary provides free IT training and paid IT certificates. Courses for beginners, intermediates, and advanced users are available.

  • Plural Site

    Pluralsite

    Pluralsight provides online courses on popular programming languages and developer tools. Other courses cover fields such as IT security best practices, server infrastructure, and virtualization.