The subscription economy, the benchmark sales model for magazines and newspapers for many years, is now being embraced by brands as they attempt to shift consumers from single purchases to a recurring revenue model.
David Gee, chief marketing officer for Zuora, which builds platforms on which brands can run a subscription business, says the model which has been adopted successfully by companies such as Adobe and Salesforce, was increasingly being seen by mainstream, consumer-focused businesses as a better way to build lifelong engagement with customers.
“You just have to look at the Netflix example, it is slowly becoming more mainstream,” Gee told Mumbrella.
“There are hundreds and thousands of medium and large enterprises today who build product and shift products and over time some, and we hope many, will make a transition from trying to build and sell product to monetising what they sell as a subscription.”
“In Australia, publishers such as Fairfax were leading the charge along with software companies, but the shift to consumer goods was already beginning. Learning from the media industry, from Fairfax and from many others around the world, teaches us that simplicity is going to be key, particularly for business to consumer.”