Monthly Subscriptions will Dominate
Annual Subscriptions will suffer a Downturn
Monthly subscriptions will escalate dramatically as organizations emerge from the economic crisis brought about by the COVID-19 pandemic which will force them to shed costs and avoid long-term commitments as they look to recover.
Businesses whose business model is reliant on annual subscriptions will be negatively impacted as their customers and prospects look to conserve cash and survive this once inconceivable financial disaster.
Unavoidable fear, uncertainty and doubt (FUD) causes a true schism that causes us to pause and hunker down.
Once we’ve calmed down a bit we begin to look to quickly shed expenses, eliminate capital expenditures (please see companion post: CAPEX will be Slashed in 2020 - click here to view), and in parallel we lower current spending patterns.
All the energy, effort and activity are focused on surviving and creating that bridge which will allow us to cross the chasm where we can regain our strength and eventually prepare ourselves to grow and prosper.
This survival mechanism will cause large projects or purchases to be put on hold or cancelled, force re-evaluation of annual contract spend, and ultimately lead to a significant directional change to monthly subscriptions.
Simply stated – with so many things up in the air and the duration of the downturn unknown, no businessperson wants to approve large expenditures or commit to long-term agreements.
So, if you’re an organization whose business model relies on annual subscriptions to drive your business – commit now to make the changes necessary and figure out how to get to a monthly subscription model today.
Obviously, you don’t want to offer up monthly subscription out of the gate or without prompting from the client – always go for the annual subscription if the customer is able & willing to commit…
I’m a huge believer in getting cash today verses waiting until tomorrow – but you want to ensure you’re positioned and prepared to allow your customer to procure solutions from you in any way they desire or demand.
I adamantly believe that the demand for monthly verses annual subscriptions will rise dramatically and now is the time to prepare for that shift so you’re able to cross the chasm and ensure the revenue clock keeps on spinning.
The next several months will be very tough on all of us, however, those who can adapt, move swiftly, and leverage the power of a monthly subscription business model will get to the other side stronger than the rest.
Adapt, adjust and overcome the mindset that rejects change and position yourself to rule the day and be a market leader in the Subscription Economy.
As always, your input is welcome so please share your thoughts with us. More importantly – be careful, be safe, be healthy…