In today's highly competitive business world, recurring revenue is one of the best ways to gain a competitive advantage over rival firms. Companies that use next-generation subscription management software, offer superior product expertise and provide unique guarantees toward improving customer satisfaction will be the ones that survive the unstable economy, according to an Econsultancy report.
All recurring business models surround one of three basics: subscription payment, pay-per-use or a combination of the two, the news source said. Determining which method consumers enjoy the most is the first step in achieving recurring revenue.
Next, decision-makers need to deploy a technology that can quickly capture and control subscriptions, Econsultancy noted. The capabilities of these solutions tend to fall into three important categories: subscription management, usage management and billing management.
To fully benefit from recurring revenue, however, businesses need to implement business intelligence solutions that can analyze consumer trends to help decision-makers find the right solutions for its customers, Econsultancy said.
According to research firm Gartner, the market for BI, analytics and performance management software generated more than $12 billion in revenue for 2011. This indicates that companies are looking to how they can develop strategies to induce recurring revenue.