With focus on the customer to success

The subscription economy is a game changer and is becoming a strategic success factor for companies, from start-ups to DAX corporations.

How to generate permanent customers

ONEtoONE from May 26, 2020: The subscription economy is a game changer and is becoming a strategic success factor for companies. The change from the spontaneous and purely use-oriented buyer to the recurring and lasting consumer enables every company to build a lasting relationship with its customers. Regardless of the industry and from the start-up to the DAX group, we create the ideal basis for it!

Why buy a car when you can drive a convertible today, a sedan tomorrow, and an SUV next week? The younger generation of consumers in particular appreciates the advantages of subscription models . They prefer using services to owning them, which is what makes streaming portals like Netflix or Spotify so successful. Because the ever-growing range of services and the convenient access to them trump ownership. The basic principle is not new. Subscriptions and leasing models have been around for a long time. In the meantime, however, they have developed significantly, both in the B2C and in the B2B area. The models have become significantly more flexible and customer-oriented. The central question for companies is no longer: How do I sell my product better? But: How can I further develop my product so that the customer is interested in permanent consumption and takes out a subscription for permanent access.

Lasting customer loyalty

To stay with the “car” example: While the customer becomes the owner of a car with the one-off purchase and becomes the owner via leasing models, he becomes a user via subscription models .

As a user, all car-related services, such as maintenance, are included. With leasing models you have to buy these services, as the owner anyway. The advantage for the customer is obvious: He has maximum cost control and the flexibility to add or deduct products/services, and that in terms of scope and duration – just as he needs it. Using products and services “as-a-service” has the appeal for the company offering it that consumers enter into a lasting relationship with the brand or the product. You can communicate directly with the customer and respond to their needs.

Take care of your customers, we’ll do the rest!

Subscription models allow you to develop your products in a customer-oriented and not product-focused manner.

This creates trust in your services and increases customer loyalty and thus generates more valuable customers. On the other hand, subscription models increase the requirements and complexity for administration and billing of their customers. The volume of invoices and accounting documents increases and the required subscription management and regular invoicing increase the complexity in CRM , billing and accounting .

Companies need the right solutions for flexibility in billing models – for products and services of all kinds. Product managers’ creativity shouldn’t be held back by restrictions in billing or accounting . Rather, the product manager should always keep an eye on the added value for the customer and thus for their company. In our white paper “Subscription Management Report 2020” we also show you which subscription model is best suited for your product, which one you can use to address your target group and which one fits perfectly with your company goals: replenishment, curation, club membership, consumption or Rent. The Subscription Management Report 2020 explains the different models and their advantages and disadvantages. With solutions from nexnet , complex subscription management becomes a simple routine. Our solutions include all the relevant building blocks for successful subscription management: from contract and customer management, the payment process and the monitoring of incoming payments to accounts receivable management , we carry out all transactions securely and efficiently.



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