1-day intro and conceptualisation workshop
View brochureGoodbye Ownership, Hello Usership
In recent years, companies across various sectors have embraced Subscription and X-as-a-Service (XaaS) models. These models shift the focus from selling products to providing ongoing services, offering customers access and performance rather than ownership. This transformation fosters predictable recurring revenue, direct customer relationships, and valuable data insights for future planning.
In these models, a company's offerings - such as hardware, software or services - are not sold as one-off products but as ongoing solutions that can be charged to customers in a recurring way.
Every company seeks to establish a "forever deal" with the customers they serve. They want predictable recurring revenue, direct relationships that avoid middlemen, and behavioural data that allows them to continue planning for the future.
It is a major shift in a company's mindset that has the potential to generate dramatically higher value - but which also involves deep changes throughout the company, requiring a thorough business model transformation.
The Idea Behind These Models
Consider what the majority of us do with our cars. We make an effort to bring the car in at the recommended 10.000km maintenance service intervals to get the oil changed, tires checked, etc.
But whether I faithfully bring my car in for routine maintenance or whether I ignore maintenance and have to bring the car in for significant repairs, which generates more income for the car dealership? It is a ruse of a question. The reply is "both". Nevertheless, let's imagine that my car operated on an “as-a-Service” model. The car dealer is now motivated to keep the car functioning for as long as possible. Since I only pay for the hours that the car is functional, the dealer does not benefit if my car breaks down and idles on the side of the road.
The main distinction with the subscription economy is this. Now, it serves the interests of both the customer AND the dealership to ensure the best and most efficient operation of the vehicle. When a customer understands that their dealer shares their interests and the situation is genuinely a win-win, the whole foundation of the relationship is altered. When that occurs, I want my dealer to be successful. I wish to give them information on my car's performance. I would want to let them know that I intend to drive to go skiing in the mountains and ask them for tips on how to get my car ready. I want to help them assist me since we are on the same team.
Benefits of Subscription and X-as-a-Service Models
Benefits for
Manufacturers
Stable Recurring Revenue
More Loyal Customer Relationships
Strategic Differentiation From Competitors
New Market Segments
Data-Driven Insights
Benefits for Customers
Lower Upfront Costs
Latest Technology
Flexibility and Scalability
Operational Peace of Mind
Simplified Lifecycle Management
Benefits for Our Planet
Resource Efficiency
Lower Carbon Footprint
Alignment of Incentives (Provider and Customer)
Sustainable Equipment Lifecycle Management
Business Model Part of the Circular Economy
Challenges and Considerations
Business Model Shift
Customer Education
Pricing Strategy
IT Infrastructure
Risk Management
Legal & Compliance
Ready to Transform Your Business?