Subscription Economy Quotes

The reason subscription (and RSS) was abandoned was because in a subscription economy the users are in control. In the on-off model, the competition might be more vicious, but its on the terms of the publisher. Having followers instead of subscribers - where readers have to check back on sites often are barraged with a stream of refreshing content laden with ads - is much better for their bottom line.

For me, publishing books in hardback format is a protest against The World Economic Forum's decree that we will own nothing and be happy about it. In an economy that's subscription based, where we stream or rent everything as a service, this is my tiny, tangible fuck you.

Ownership is dead. Access is the new imperative. International Data Corporation (IDC) predicts that by 2020, 50 percent of the world’s largest enterprises will see the majority of their business depend on their ability to create digitally enhanced products, services, and experiences. Focusing on services over products is also a sound business strategy. Zuora’s Subscription Economy Index, which you’ll find at the end of this book, shows that subscription-based companies are growing eight times faster than the S&P 500 and five times faster than US retail sales.

So what is the Membership Economy? Some say it’s all about subscriptions. Others say it’s about community and communication. Still others say it’s about belonging. Some say it’s been around forever, in associations, loyalty programs, and gyms. I think the Membership Economy is all these things.

Ask yourself: What assets or capabilities do you need to be successful in this comfort-and-safety-as-a-service proposition? For example, you would need the capability to assemble and distribute the necessary HVAC equipment, security cameras, and other physical infrastructure. This, fortunately, may be a capability you already possess as an equipment manufacturer. But chances are that such a player would lack at least a few other critical capabilities. For instance, you would need the ability to install and maintain that equipment, which may go beyond the scope of your current operation. Perhaps most importantly, you would need an online platform to connect all the devices, sensors, and other equipment—allowing for the creation of digital twins for real-time remote digital monitoring. This online platform would also allow customers to make adjustments, access camera footage, and manage their subscription, all in one place.

Membership Economy organizations assume they’re going to deal with the same customers, forever. The well-being of the customer, and the health of the long-term relationship, is the highest aim of these organizations.

says Robbie Kellman Baxter, author of The Membership Economy. “Make it easy for customers to leave if they want to. You can certainly ask them why they’re leaving, or try to win them back, but don’t get in their way—the digital equivalent of blocking the exit with a hulking security guard.

For the past 120 or so years, we’ve been living in a product economy. Companies designed, built, sold, and shipped physical things under an asset transfer model. Business was about inventory, shelving, and cost-plus pricing. The relationship between seller and buyer was based on discrete, often anonymous transactions.

Instead, I argued, the goal of business should be to start with the wants and needs of a particular customer base, then create a service that delivers ongoing value to those customers. The idea was to turn customers into subscribers in order to develop recurring revenue. I called the context for this change the Subscription Economy.

Everything we make will have predictive maintenance, improved efficiency, better safety, better usability. And everything will be made to order. We won’t be cranking out millions of identical widgets and stacking them up in pallets in overseas factories in order to be shipped around the world anymore. We’ll be customizing objects much closer to home. As Olivier Scalabre points out, we’ll be replacing the classic “East to West” trade flows with regional trade flows—East for East, West for West. “When you think about it, the old model was pretty much insane,” Scalabre says. “Piling up stock. Making products travel around the world. The new model—producing right next to the consumer market—will be much better for our environment. In mature economies, productivity will be back home, creating more employment, more productivity, and more growth.

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