There’s a major shift in buying behavior underfoot, and soon marketers’ (and companies’) success won’t be determined by one-time sales transactions. It’s all about brand loyalty, and the direct relationships with customers that keeps them coming back over time.
In an article for MarketingProfs, Jeff Yochimura writes that “what began with Netflix and Zipcar is now moving across billion-dollar industries, including communications, entertainment, publishing, and more.” In fact, he continues, “industry research analyst firm Gartner predicts that by 2015 35% of Global 2000 companies will generate revenue via subscription-based services and revenue models.”
That means a major shift in both thinking and practice for marketers, and Yoshimura offers five keys to help them adapt and avoid being left behind. Perhaps the biggest change is that in the new subscription economy, success is built on owning the customer, not the sale. “Instead of focusing on products, units shipped, and annual profits,” Yoshimura argues, “marketers in the subscription economy should care about one thing: how many customers they reach and retain.” For more on how you should be adapting to the evolving subscription economy and marketing to subscribers, read the full article here.
Related Content from OpenView:
Is a Software as a Service (SaaS) model right for your organization? For more insight into the reasons why (and why not to) make the switch, and what the transition will entail for your sales and marketing strategies, tune in to this OpenView Labscast. And as a real-world example, this post from the OpenView Blog breaks down Amazon’s pricing and marketing strategy.