Lecture 5: Subscription Models Flashcards
Subscription Models change and face a widespread shift from traditional product-based economy.
- Give reasons for the change? (3)
Companies prioritize ..
- reducing production costs for higher profit margins.
- direct and ongoing relationships with their customers.
- ERP systems to emphasize the importance of operational efficiency.
Retail Landscape Changes,
give 3 examples?
Priority on Subscription Experience:
Achieving an excellent subscription experience is a top priority. Includes providing subscribers with easy cancellation options.
Service Offerings with Premium Products:
Companies sell services alongside their premium products.
Online-First Approach for Physical Stores:
Physical stores serve as an extension to the online experience, not the reverse.
IoT’s Role plays a vital role in Subscription Models.
Give examples regarding the role and characteristics of IoT? (2)
Enhanced Servicing and Product Life:
Leveraging IoT is valuable, especially when a company sells physical products that require servicing or degrade over time.
Internet Connectivity for Industrial IoT:
In an industrial context, IoT relies on sensor-equipped products with an active internet connection for proper functionality.
The Manifesto for Agile Software Development includes four key values. Name the four original values? (4)
-
Individuals and interactions
over processes and tools. -
Working software
over comprehensive documentation. -
Customer collaboration
over contract negotiation. -
Responding to change
over following a plan.
Explain Annual Recurring Revenue (ARR) (3)
important KPI to monitor subscription-based businesses
- predict future revenue & business growth potential
- identifies and measures customer retention & churn rates
Why should you only invest profits into marketing and sales to scale up your subscription business? (2)
- If you are not able to generate profits, you don’t know whether people are willing to pay for your service, and
- you may just scale up your losses.
