tom_color

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

Tom Dibble

Tom Dibble is President and CEO of Aria Systems, a proven leader with more than 20 years of experience in the high technology market. He joined Aria Systems in 2009 from Oracle Corporation where he served as vice president of worldwide channels and alliances, as a result of Oracle's acquisition of BEA Systems in May of 2008.

Prior to Oracle, Dibble was vice president of worldwide channels and alliances at BEA Systems. Before joining BEA Systems, he managed business development at several high-growth, venture-backed companies.

Dibble began his career working for Goldman Sachs and Company. He holds a degree in economics with honors from Syracuse University.

View Website
Driving Transformation? It is possible to predict the future.

Driving Transformation? It is possible to predict the future.

Driving Transformation Previously, I wrote about the criticality of defining the Vision for your transformation - what is your real objective, how will it transform your business and what will be the outcome for your customers. But ...
Part 1 - How Cloud Apps Are Making Businesses More (and Less) Secure

Part 1 – How Cloud Apps Are Making Businesses More (and Less) Secure

Cloud Apps Security Today, more than ever before, employees are working while on-the-go. The ease with which a worker can enjoy a coffee-café latte in one hand and click “send” with the other is made ...
Design + Cloud + 3D Printing = Real Objects Anywhere

Design + Cloud + 3D Printing = Real Objects Anywhere

Design + Cloud + 3D Printing Got an idea for a new gadget or do you need a unique part? Just reach out to Staples and they will print out the physical object and ship ...
5 Reasons to Head for the Cloud – Part 1

5 Reasons to Head for the Cloud – Part 1

Head for the Cloud Last month Salesforce held its 14th annual Dreamforce event in San Francisco. It has become the largest software conference in the U.S. and is the second largest tech conference after CES ...
5 Data Security Tips Small Businesses Should Mimic

5 Data Security Tips Small Businesses Should Mimic

Data Security Tips As more and more companies begin to switch to the cloud, cyber attacks need to be a top priority for business owners of all sizes and within all industries. But small businesses ...

CLOUDBUZZ NEWS

Security in the Cloud—A Little Known Advantage, Actually

Security in the Cloud—A Little Known Advantage, Actually

Okay, I’ll go ahead and say it: Public cloud infrastructures are more secure, and the security is more cost-effective, than the majority of on-premises data centers. That should get the blood flowing. With the word ...
Kaspersky Lab to open Swiss data center to combat spying allegations

Kaspersky Lab to open Swiss data center to combat spying allegations

LONDON (Reuters) - Moscow-based Kaspersky Lab plans to open a data center in Switzerland by the end of next year to help address Western government concerns that Russia exploits its anti-virus software to spy on ...
Rackspace Launches Kubernetes-as-a-Service with Fully Managed Operations

Rackspace Launches Kubernetes-as-a-Service with Fully Managed Operations

SAN ANTONIO – May 16, 2018 – Rackspace today announced Rackspace Kubernetes-as-a-Service, a highly-available managed service that transforms the way enterprises can utilize new container technologies, accelerating their digital transformation. Rackspace is focused on delivering true transformation ...
The Lighter Side Of The Cloud - Recovery Experts
The Lighter Side Of The Cloud - The Dating Game
The Lighter Side Of The Cloud - The Letter "G"
The Lighter Side Of The Cloud - YTF
The Lighter Side Of The Cloud - Virtual Office Space
The Lighter Side Of The Cloud - Going Viral
The Lighter Side Of The Cloud - Day 5
The Lighter Side Of The Cloud - Snowball Effect
The Lighter Side Of The Cloud - Easter Egg Hunt