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Building deeper relationships and greater brand loyalty

Product and service companies must offer a compelling customer experience. A customer’s relationship with the brand defines their commitment and happy customers deliver longer lifetime value (LTV).

The digital economy has significantly increased the volume of options and programs, and building a traditional customer relationship is no longer enough. Powerful data-driven marketing campaigns led by new and aggressive disruptors are attracting customers with personalized offers, attractive prices, and bonuses, and changing their brand loyalty in a fast-moving and hyper-competitive market.

The solution is to rethink the traditional customer experience and offer greater value and convenience to meet changing customer expectations. Subscription-based commerce is a key tool for companies to provide more individualized and responsive experiences, as the offer is tailored specifically to the consumer’s needs. Also known as a servitization model, this enables more frequent touchpoints to ensure higher product quality and maintain service operations, as it is more conducive to creating and sustaining relationships than are traditional sales approaches.

The subscription-based business model has disrupted the market by enabling customers to have the experience they want on their terms. Subscription management has been successfully deployed across sectors such as automotive, entertainment, software, fitness, home maintenance, retail, and other industries. Going forward, it will be critical for organizations looking to reinvent their customer experience to consider the role of servitization in their future to keep pace, stay relevant, and increase sales and LTV.

Read Subscription commerce: The key to long-lasting B2B sales and relationships to learn more.

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