Recurring revenue business models are quickly gaining popularity across all industries, from automotive to healthcare to industrial manufacturing, as more businesses move away from one-time sales transactions. In an age where ongoing customer relationships and loyalty are prioritized, subscription and usage-based billing models are preferred as they enable companies to enter new markets, defeat competitors, and get a lifetime of value from new and existing customers.
Nearly 50% of US businesses agree. They’ve already adopted or are considering adopting recurring revenue business models, and the number is expected to steadily rise as companies continue to reinvent their product catalogs to support recurring services. From Netflix and Adobe to Philips Healthcare and Pitney Bowes, enterprises of all sizes across all industries are restructuring their business models to offer subscription and usage-based services.
If you want to be successful in the future, you need to take advantage of the on-demand, Internet-fueled revolution we live in today. Recurring revenue may be the largest opportunity to disrupt markets and drive new revenue growth. Companies that move quickly to transform themselves into a recurring revenue business will rapidly grow market share and be rewarded by Wall Street over competitors who lag in innovation.
Why today? Why now? Take a look at the infographic below to learn more about the trends causing the rush to recurring revenue.
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