Time's Up! Pivoting Your Firm to a Subscription Based Model 2024

Overview:

The barber, blacksmith, butcher, baker and candlestick maker used to have an intimate knowledge of their customers. This tacit knowledge got lost in the Industrial Revolution. It is now coming back. The world is moving from products and services to subscriptions, favoring access and transformations over ownership and deliverables. McKinsey reports that the subscription ecommerce market has grown by more than 100% per year for the past five years. Further, subscription-based companies are growing eight times faster than the S&P 500 Index (17.6% vs. 2.2%) and five times faster than US retail sales (17.6% vs. 3.6%). The advantages of a subscription model include predictable revenue, the collective knowledge of your customers, one-to-one marketing, forecasting for demand and planning more effectively, breaking down silos and creating an actual "one-firm" model.