{"id":612492,"date":"2022-07-25T04:08:34","date_gmt":"2022-07-25T04:08:34","guid":{"rendered":"https:\/\/www.capgemini.com\/us-en\/?page_id=612492"},"modified":"2025-03-06T01:00:44","modified_gmt":"2025-03-06T06:00:44","slug":"demystify-the-subscription-model","status":"publish","type":"page","link":"https:\/\/www.capgemini.com\/us-en\/solutions\/demystify-the-subscription-model\/","title":{"rendered":"Demystify the subscription model"},"content":{"rendered":"\n
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Demystify the subscription model<\/h1><\/div>
Download POV<\/span>6 MB pdf<\/span><\/a><\/div><\/div><\/div><\/div><\/div><\/div><\/header>\n\n\n\n

Make servitization work for you<\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n
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Predictions estimate the subscription economy will grow to $1.5 trillion by 2025<\/a>, double its current value. The problem is that step one to making subscriptions work is to understand how they apply to an existing business, and that is proving difficult.<\/p>\n\n\n\n

A subscription business model creates forward-looking revenue<\/a> through a voluntary contract in which regular payments are made to gain access to a product or service. The customer has designated ownership of the product or service during the length of the contract while the seller generates value from the subscription itself and a platform that scales to welcome additional customers.<\/p>\n\n\n\n

This is often disruptive and requires the entire company to migrate to a new way of thinking but Capgemini has helped clients move successfully into subscription models that support the business and customers.<\/p>\n\n\n\n

Crafting an appropriate subscription model can drive more predictable and linear revenue with a lower cost of sales and higher gross margins. It also opens up new avenues to customers and drives innovative ways to deliver more value.<\/p>\n\n\n\n

Download Demystifying the subscription model to understand how the right strategy can drive retention and acquisition.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":191,"featured_media":643874,"parent":584467,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"{\"uuid\":\"f09e6fa0-6e93-4cdf-9b46-7564e576121a\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_seo_hreflang_x_default_relation":"{\"uuid\":\"a5911f81-160f-4b4a-8c0f-76d12de30adc\",\"blogId\":\"\",\"domain\":\"\",\"sitePath\":\"\",\"postLink\":\"\",\"postId\":null,\"isSaved\":true,\"isCrossLink\":false,\"hasCrossLink\":false}","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"_yoast_wpseo_primary_brand":"","footnotes":"","featured_focal_points":"","partner_card_description":"","gsap_animation":0},"brand":[],"partner_type":[],"service":[],"industry":[],"partners":[],"page-type":[226],"content-group":[],"class_list":["post-612492","page","type-page","status-publish","has-post-thumbnail","hentry","page-type-solutions"],"yoast_head":"\nDemystify the subscription model - 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Initially deployed to allow customers to rent rather than purchase\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2022\/09\/servitization-featured.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2022\/09\/servitization-featured.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2022\/09\/servitization-featured.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2022\/09\/servitization-featured.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":622925,"url":"https:\/\/www.capgemini.com\/us-en\/solutions\/boost-revenue-and-customer-loyalty-with-equipment-as-a-service\/","url_meta":{"origin":612492,"position":3},"title":"Boost revenue and customer loyalty with Equipment-as-a-Service","author":"urnamukhopadhyay","date":"April 15, 2021","format":false,"excerpt":"Boost revenue and customer loyalty with Equipment-as-a-ServiceEaaS-POV-1...272 KB pdf FacebookTwitterLinkedinThe traditional product sales model has brought success to companies for decades. 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A new model is emerging \u2013 one that provides a viable and profitable alternative that addresses the\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2022\/09\/MALS-EAAS-featured.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2022\/09\/MALS-EAAS-featured.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2022\/09\/MALS-EAAS-featured.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":623088,"url":"https:\/\/www.capgemini.com\/us-en\/solutions\/subscription-commerce\/","url_meta":{"origin":612492,"position":4},"title":"Building deeper relationships and greater brand loyalty","author":"urnamukhopadhyay","date":"July 2, 2021","format":false,"excerpt":"Building deeper relationships and greater brand loyalty FacebookTwitterLinkedinProduct and service companies must offer a compelling customer experience. A customer\u2019s 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\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":612516,"url":"https:\/\/www.capgemini.com\/us-en\/solutions\/gain-new-customers-and-revenue-streams-with-product-led-growth\/","url_meta":{"origin":612492,"position":5},"title":"Gain new customers and revenue streams with product-led growth","author":"chaitanyakadrekar","date":"July 25, 2022","format":false,"excerpt":"Gain new customers and revenue streams with product-led growthDownload ebook12 MB pdf This sales model prioritizes the product experience to create recurring revenue and lifetime customers Clever solutions are needed to excel in this digital economy. 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