BRX Pro Tip: Subscription vs Ownership
Stone Payton: And we’re back with Business RadioX Pro Tips, Stone Payton and Lee Kantor here with you. Lee, I know at Business RadioX we have a bit of a mix of business models, depending on what we believe will generate the most productive outcome for our clients. A great deal of ours is subscription based, but talk a little bit about business models, subscription, ownership, et cetera.
Lee Kantor: Yeah, I think subscription models are a great call for a lot of professional service or business, and if they can kind of productize some of what they’re doing into a subscription, they’re going to have kind of more reliable growth over time.
Lee Kantor: So, how do you kind of rethink your product model? Some ways that you can do that, even small brands can kind of recast what they’re selling as a subscription or a service, even getting to the point where you’re unsubscribing some of your customers who aren’t a good fit, so rethink your product model. You can open up some new revenue streams, you can increase customer loyalty, and you can provide more agile offerings.
Lee Kantor: So, the key to this is looking for recurring value. Which aspects of your product or service that you deliver over time and that require kind of periodic refreshes, upgrades, or support? So, that’s a good clue that you might have a good subscription model opportunity there.
Lee Kantor: And then, remember to focus not on just access to your brain, but to focus in on the customer outcomes. Sell the result your product provides, whether it’s piece of mind, updated tools, always on, services, things like that, and not just the product itself.
Lee Kantor: Subscription models aren’t just a pricing change. They’re a new way of delivering on customer outcomes, which are going to build relationships and then help you stay agile as the market changes. So, by thoughtfully reimagining your offering, you can meet changing customer expectations and smooth out your revenue streams and stay ahead as the marketplace shift.
