Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It

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The Life of Pablo a minimum viable product. That may sound like a pejorative term, but a minimum viable product is actually incredibly important. Only after it gets something out in the market can a business gather customer feedback and use this data to iterate and improve in a continuous deployment cycle. The MVP is a defining principle of cloud s

The surprising result is that companies that use just a small amount of usage-based billing in their revenue mix (less than 10 percent) grew more than twice as fast on average as companies that did not employ usage-based billing at all.

Because at the end of the day your customer insight defines who you are; it’s your competitive advantage. Lose the insight, and you lose yourself.

Here’s the key takeaway—it is perfectly rational for subscription businesses to spend all their profits on growth, as long as their bucket doesn’t leak. Remember, as long as you are growing your ARR faster than your recurring expenses, you can step on the gas. As Ben Thompson of Stratechery notes, “You’re not so much selling a product as you are cr

If you’re doing it right, expansion—that is, gaining more revenue from dedicated subscribers over time—should happen naturally. When you expand your value, then the commercial benefits will follow. The ability to develop customer relationships over time is where the really amazing subscription companies distinguish themselves from everyone else. If

Fender CEO Andy Mooney, who incidentally closed our 2017 Subscribed conference in San Francisco with an amazing cover of “Layla,” says that by simply reducing his abandonment rate by 10 percent, he could double the size of his market. That’s a really compelling example of someone applying a service-oriented mindset to an ostensibly “static” product

Service features billed by usage are usually the core value metric of a subscription service offering: the most valuable feature to use, and the most expensive to deliver. If a company charges for use of something that is not clearly providing value, there is the potential to enrage rather than engage!

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