Wurster shares a few of the lessons they learned along the way — from the common sense to the painful. You do not have to move all customers and products to the new subscription offering at one time — nor do you have to stop selling products through your traditional model.
Ease into the change by offering options and and new products for customers with a subscription-first strategy. At the same time, maintain your traditional model for existing products and customers during the transition.
Move new products and customer contracts first and then convert existing customers to keep acquisition costs low. Be sure to provide flexible license options. When creating your transition strategy, be sure to also:.
Make it easy for customer and prospects to purchase with try-before-you-buy programs and modular, add-on capabilities not typically offered by the traditional model. Both are ideal for introducing new features to new and existing customers. For example, you can turn capabilities on or off via user access to a SaaS solution. Try-before-you-buy programs modular options also help to differentiate your SaaS model, improve the value of your software and provide more predictable cash flows.
Be prepared to demonstrate the value of moving to a subscription model to sales, customers and partners. Sales will want to be reassured that they can make as much or more over time. Partners will want to ensure they are not cut out of the value chain as subscription models eliminate or reduce some revenue-generating services and fees. This is one of the biggest transition pain points IT leaders experienced.
To combat misconceptions, follow these recommendations:. This article has been updated from the original, published on November 12, , to reflect new events, conditions or research. Connect with the leading IT and business executives to get the latest insights on tech trends and drive product innovation for business growth and more.
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