Using S/4HANA for innovation and business transformation!

Subscription models represent an additional sales channel. Companies that do not pursue them give up that customer segment to competitors embracing subscriptions. Subscriptions are not silver bullets that solve all problems, but they do improve customer retention with deeper customer and market insight. Subscription business models are part of a digital journey and help you connect with your customers.

Subscription management has unique characteristics. Used properly, it provides a lower risk avenue to explore new product, service, and delivery options with lower risk of customer loss. Because a well-executed subscription model focuses on the customer, it creates an automatic emphasis on customer experience and customer retention. Both of these encourage customer stickiness. You gain more predictable recurring revenue and higher market valuations. Additionally, the customer stickiness to your company forces your competitors to experience higher acquisition costs.

You can also explore novel, market-maker products and bundles. Lower risk of customer loss also enhances your ability to provide new offers, options, solutions, and customer experience. Many are finding that the benefits of this transaction alternative far outweigh the risks.

See Our Subscription Solution Overview on SAP S/4HANA