“4 Reasons Why the Subscription Economy Kicks Ass”

I saw this short article on AlleyWatch today, “4 Reasons Why the Subscription Economy Kicks Ass”, that back-linked to an article from September entitled “Zuora’s whopping round shows the subscription economy is here to stay”.

  1. Predictable cashflow.
  2. Easier for the consumer to buy.
  3. Can be very profitable.
  4. Can save and change certain industries.

One of my favorite parts of working on Office 365 in my last few years at Microsoft was helping to make Office “subscription-able”; not an easy task when you’re talking about products like Outlook that have 100 million+ lines of code and are 12 years old. Now, working at Contactive, it’s exciting to think about how we take our products and platform and make them SaaS-backed from the start, ensuring that our customers will have an easy way to understand how and what to buy from us. 

Link

A great article that discusses the importance of price testing with your customers, especially when you have a SaaS offering and are trying to attract different personas to the same product line. Another great point in the article is about having a clear value metric for your customers; one that can be explained to your users and makes sense when striated across price ranges.

Netflix Experiment Stirs Up 3 Steps to Develop Your Pricing Plans