Recurring revenue models have become increasingly more popular in businesses across all industries, from entertainment to technology to industrial goods and services. And rightfully so – recurring revenue is a disruptive trend that empowers companies to grow their revenue and gain the competitive advantage by changing the way they package and sell their products and services. This model provides stable, predictable income streams which increase the bottom line and delight executives and investors alike.
In the past, telecommunications (telco) companies were the main beneficiaries of the recurring revenue model. However, the global shift to digital business and the Cloud completely changed the way businesses do business. People are connected through mobile devices and affordable cloud technology, making it possible for companies like Uber, AirBnB, and Roku to give industry giants a run for their money. How does one stay relevant in a hypercompetitive market where customer loyalty can switch at the drop of a dime? Innovate, iterate, satisfy, and monetize.
The beauty of recurring revenue is in its name – the revenue is recurring, constantly flowing into and growing the business. The focus is no longer on acquiring as many new customers as possible. Today the customer is king/queen and maintaining a positive relationship with them increases the customer lifetime value (CLV), which in turn becomes recurring revenue over time. The strategy is clear and, more importantly, effective – turn a one-time customer into a lifetime customer. There are many strategies and tactics to launching a successful recurring revenue system. Start by checking out Aria’s From One-time to a Lifetime: The Guide to Recurring Revenue Success and learn:
Download the guide today and begin your journey to recurring revenue success.