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Gabe Weisert,Tien Tzuo

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Companies like Netflix, Spotify, and Salesforce are just the tip of the iceberg for the subscription model. The real transformation—and the real opportunity—is just beginning.
Subscription companies are growing nine times faster than the S&P 500. Why? Because unlike product companies, subscription companies know their customers. A happy subscriber base is the ultimate economic moat.
Today's consumers prefer the advantages of access over the hassles of maintenance, from transportation (Uber, Surf Air), to clothing (Stitch Fix, Eleven James), to razor blades and makeup (Dollar Shave Club, Birchbox). Companies are similarly demanding easier, long-term solutions, trading their server rooms for cloud storage solutions like Box. Simply put, the world is shifting from products to services.
But how do you turn customers into subscribers? As the CEO of the world's largest subscription management platform, Tien Tzuo has helped hundreds of companies…
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  • dariabutdariaje citiralaprije 3 godine
    Subscriptions also don’t offer the option to buy when they conclude, which I view as a huge positive—that means that it’s in the carmaker’s interest, not yours, to keep its vehicles in great shape.
  • dariabutdariaje citiralaprije 3 godine
    Another difference: With subscriptions, all the potentially annoying aspects of owning a vehicle (registration, insurance, maintenance) simply go away. With leases, you still have to get your own insurance.
  • dariabutdariaje citiralaprije 3 godine
    But wait—isn’t a vehicle subscription just another word for a lease? Well, no. A lease still binds you to a specific vehicle, whereas a subscription can potentially offer you access to a range of vehicles.

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