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How to succeed with a subscription-based service strategy

Companies are increasingly chasing recurring-revenue models as they see subscription services succeed for some competitors, but these strategies also have a high failure rate – making the right approach essential.

Initially deployed to allow customers to rent rather than purchase software, storage, and other capabilities, the servitization business model has since expanded to cover a variety of goods and services across all sectors. Succeeding with a subscription-based model in today’s competitive market requires looking beyond recurring revenue and focusing on how the relationship can add value for the consumer.

Capgemini understands that this brand engagement is key, as it gives consumers a reason to interact with the product or service every month. The subscription-service economy is saturated with companies providing similar offerings, so engagement is crucial – not just for attracting new clients, but also for keeping them as happy and loyal subscribers.