What’s Better than a Few Real-World Recurring Revenue Use Cases?

Recurring Revenue Innovators (Part 1)  Learn How these Global Giants achieved Big Payoffs with Creative Recurring Revenue Strategies Over the past year, our prospects and customers here at Aria Systems have repeatedly told us they wanted real-world case studies of how other companies are successfully adopting recurring revenue models. And what they mean by “success” is that a company has done something notable like gain a new market, or increase revenues or customer satisfaction significantly.

So we decided to go out and find businesses that were using recurring revenue models successfully. We expected to uncover a fair number of examples, but didn’t expect to find so many companies doing such extraordinary things. And we’re a company with a dizzying number of brand name prospects and customers working daily on new and interesting recurring revenue initiatives. What struck us was the sheer creativity and innovation demonstrated by these companies whether they have waded into recurring revenue methodically, like Microsoft, or made a huge shift in their business strategy in one fell swoop, like Adobe. So with 39 innovator candidates chosen from 67, our Recurring Revenue Innovators e-book was born.

Some of our innovators are using the ever-popular subscription model for offerings that actually change every month. Companies like BarkBox, Birchbox and Cannabox ship monthly “discovery” boxes to their subscribers. BarkBox is making a good go of it and is said to be profitable with $2M a month in sales after only six months in operation.

Others, such as HootSuite, are cleverly using the “freemium” model to attract and develop a loyal base of customers before upgrading them to paid premium services. This approach has resulted in solid revenue gains and captured a market for up-sell opportunities. Still others are hybridizing subscription and consumption models, such as Red Hat, which offers a Platform as a Service (PaaS), making its cloud development platform more desirable to subscribers. Companies like Toyota Europe are marketing a subscription service instead of asking customer to buy a device and throwing in the service for free − in their case subscriptions to an in-car GPS system.

Recently, generating recurring revenue has become the new darling strategy of the business world and its investors. That’s because when these innovators think out-of-the-box and shake things up, they not only disrupt markets or create new ones, they also garner a new level of loyalty from customers. This can lead to exponential increases in revenue and profits now, and in the future. What businessman or woman doesn’t love repeatable, predictable revenue streams?

So, it makes sense that companies would find our real-world “innovators” case studies, published in one place, useful. And they do. Our first edition, the Global Giants has been out for only a week and it’s already a hit. And we have two more editions to go. So what’s better than a few recurring revenue use cases? 39 innovators who are shaking up the recurring revenue world.

-Marie Martin



About the Author

Marie Martin
Interested in more posts like this from Marie? Stay tuned for more great content coming soon to the Aria Blog!

The Forrester Wave: Subscription Billing Platforms, Q4 2015

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