February 2020
Intermediate to advanced
256 pages
4h 4m
English
For buyers, the subscription economy promised manageable prices for instant value. Prohibitively costly goods could be had immediately for lower recurring payments. The barriers to entry and exit were lower, so buyers were no longer locked into bad deals by huge investments.
But what about the promise this bargain made to vendors? As long as you were meeting the customers’ needs, the lifetime value of the relationship could grow—infinitely, in theory—and customers would renew automatically, forever.
However, I recently heard a poignant quote from a head of sales: “In a competitive market, renewals are really resells.”
That’s a troubling premise for recurring revenue businesses. If renewals are no longer automatic, that means the renewal ...