As the world is trending towards simpler, convenient and hassle free hub where consumers are getting less inclined towards investing huge assets on software’s before getting hands on it. This combination of technological and demo-graphical change has led more and more software companies to launch subscription models which can lead them to incredible growth.
Subscription model allows both vendor and customer to reap the benefits. Customer receives value for money while for a vendor software renewal rate is faster with really quick software sales lifecycle.
Software on subscription has many advantages to be noted like:-
Flexibility: With no initial investment, the benefit is twofold as it allows to plan resources and simultaneously predict the revenue. Also customer is able to discontinue the services at any point of time without losing on anything, while the company has an option to add or remove users as it grows.
Minimal procurement cost: Even smaller enterprises can access subscription software with nominal costs and try working on them before really purchasing it.
Zero up-front IT Infrastructure cost: With zero IT infrastructural costs, users can access the software from client’s server and trying using the same.
Anywhere, anytime accessibility: If the subscription software model is placed on cloud solution, it allows users to have complete accessibility anywhere, anytime.
Ability to scale – If user needs any dramatic changes, in between any ongoing project, software on subscription allows the user to scale his work up or down without getting worried about the contract.
Changes fixed cost model to variable cost model: Subscription model not only gives flexibility but is also helps customers to spread out costs through longer run.
Better Service from Provider: As there is no upfront payment cost, service provider remains more concerned to retain customer. This leads to better service as if the clients discontinue for any reason the service providers have lot to lose. On the other hand, is customers are happy and satisfied with the software, they are more likely to add on more users to the software bringing more profits to the service provider.
Thus subscriptions offers value to both the company and to the customer in multiple aspects.