Do you have a mobile phone, or cable or satellite TV? Do you stream music? Well, chances are, you’re familiar with a subscription-based purchasing model. And you’re not alone; billions of consumers worldwide are subscription customers.
In the business-to-business world, too, the subscription-based, or on-demand model, is increasingly common. In this environment, software is the most common example. Organisations often get software, such as accounting or customer relationship management systems, via subscription rather than purchasing a fixed number of licences. This enables them to work more flexibly, and ensures the very best ROI on their tech spend.
However, this new model can pose certain challenges when it comes to customer engagement as customers have less and less need to interact with sales staff. At the same time, subscription-based models require businesses to interact with customers more regularly in order to keep them buying.