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Session Title: The Subscriptions Services Movement Description of Session: New subscription based offerings for consumers and businesses provide an alternative to owning or purchasing products. The most common examples include hosted services such as Netflix and Salesforce.com but even traditional products that cannot be delivered online such as Adobe’s PC software suite and online razor sales (Dollar Shave Club) have made the move to subscription based models. In fact a recent poll from the Economist Magazine Intelligence Unit suggests nearly half of businesses surveyed in the US, UK and Australia are looking to offer a subscription based product in the next 2 years.Jonathon will lead this Town Hall style session sharing his experience and the subscription approach. Join the conversation and explore if your product or business could benefit from being served as subscription or service. Align your consumers interests with yours by creating a relationship instead of a single sale.
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MovementSUBSCRIPTIONSERVICES
Jonathon MoodyVP Operations, Versature
Monday, 4 November, 13
SUBSCRIPTIONS?
Monday, 4 November, 13
Monday, 4 November, 13
MOVEMENT?
•New word for renting or leasing?
• Isn’t this just the old lease vs buy debate?
• Is the consumer ahead?
Monday, 4 November, 13
B I R C H B O Xthe Perfect Subscrip6on Business
Subscrip)ons in different categories already existed on the market
• Magazine and newspaper
subscrip6ons
• Telcoms and TV
• SoCware as a service
Tradi)onal categories Introduc)on to apparel Expansion to other categories
• Shoedazzle disrupted the
market by selling new pair
of shoes in subscrip6on for
$39.90
• Shoedazzle raised $60M in
funding
• Copycats of Shoedazzle
started to appear on the
market (JustFab)
• The model has spread to
other categories, e.g.
male essen6als
(Manpacks)
2007XIXth century 2010
Source: birchbox.com
Monday, 4 November, 13
Monday, 4 November, 13
Monday, 4 November, 13
CONSUMER GOODS?
Monday, 4 November, 13
Monday, 4 November, 13
• Surveyed 293 business executives
•Majority are changing buying and selling habits to include subscription services
• 84% believe it will increase revenue
Source: http://info.zuora.com/2013EIUReport_Home.html
FLASH IN THE PAN?
Monday, 4 November, 13
BUSINESS SENSE?• Recurring revenue
• Can be less VC intensive
• Slow ramp up
• Complex billing and operations
• Launch from within non-subscription firm
• Pricing models
Monday, 4 November, 13
MovementSUBSCRIPTIONSERVICES
Jonathon Moodyjmoody@versature.com
DISCUSSION
Monday, 4 November, 13
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