Generating a recurring revenue stream with customers is critical business objectives facing Durable Equipment Manufactures today. The key: building a forever transaction with every customer you have.
Connected Customer Experience
It’s every manufacturer’s challenge: how to build a forever transaction with every customer you’ll ever have.
Initial product sales are your primary focus, and rightly so – they provide immediate net new revenue, cash flow and market share growth. Though when you turn a single-event sale into a subscription model, the revenue scope shifts to an ongoing relationship, facilitating a forever transaction, and often a customer for life.
This blog post was written by Robbie Kellman Baxter, founder of Peninsula Strategies, LLC, and a bestselling author. She is an expert on membership and subscription-based business models. Her clients have included start-ups and mid-sized venture-backed companies as well as industry leaders such as Netflix, Oracle, Electronic Arts, and eBay.
“Back-end is the new front-end.” Georg Richter, CEO of OceanX
If you’re thinking of expanding your offering to include ongoing services, such as data analytics, support, or scanned data billed on a subscription basis, or even if you’re thinking of moving to an “as-a-service” model for your entire business, forgoing selling equipment altogether, make sure that you have the right technology to support it. Consumers have become more sophisticated about how subscription services should be delivered and base their expectations on their experiences with subscription leaders like Amazon Prime, Netflix and Spotify.