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Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It
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About Subscribed: Why The Subscription Model Will Be Your
Product Description A USA Today bestseller! Companies like Netflix, Spotify, and Salesforce are just the tip of the iceberg for the subscription model. The real transformation--and the real opportunity--is just beginning. Subscription companies are growing nine times faster than the S&P 500. Why? Because unlike product companies, subscription companies know their customers. A happy subscriber base is the ultimate economic moat. Today's consumers prefer the advantages of access over the hassles of maintenance, from transportation (Uber, Surf Air), to clothing (Stitch Fix, Eleven James), to razor blades and makeup (Dollar Shave Club, Birchbox). Companies are similarly demanding easier, long-term solutions, trading their server rooms for cloud storage solutions like Box. Simply put, the world is shifting from products to services. But how do you turn customers into subscribers? As the CEO of the world's largest subscription management platform, Tien Tzuo has helped hundreds of companies transition from relying on individual sales to building customer-centric, recurring-revenue businesses. His core message in Subscribed is simple: Ready or not, excited or terrified, you need to adapt to the Subscription Economy -- or risk being left behind. Tzuo shows how to use subscriptions to build lucrative, ongoing one-on-one relationships with your customers. This may require reinventing substantial parts of your company, from your accounting practices to your entire IT architecture, but the payoff can be enormous. Just look at the case studies: * Adobe transitions from selling enterprise software licenses to offering cloud-based solutions for a flat monthly fee, and quadruples its valuation. * Fender evolves from selling guitars one at a time to creating lifelong musicians by teaching beginners to play, and keeping them inspired for life. * Caterpillar uses subscriptions to help solve problems -- it's not about how many tractors you can rent, but how much dirt you need to move. In Subscribed, you'll learn how these companies made the shift, and how you can transform your own product into a valuable service with a practical, step-by-step framework. Find out how how you can prepare and prosper now, rather than trying to catch up later. About the Author Tien Tzuo is the CEO and cofounder of Zuora, the leading subscription SaaS provider, with more than 1,000 customers worldwide. Zuora, which is foundational to companies in the growing Subscription Economy, was born out of Tzuo's experiences at Salesforce, a pioneer of the subscription model, where he was formerly CMO and Chief Strategy Officer. Headquartered in Silicon Valley, Zuora also operates offices in Atlanta, Boston, Denver, San Francisco, London, Paris, Beijing, Sydney and Tokyo. Gabe Weisert is the managing editor of Zuora's Subscribed magazine. He has previous written for Yahoo!, Forbes.com, and Andrew Harper's Hideaway Report. Excerpt. © Reprinted by permission. All rights reserved. Chapter 1 The End of an Era What does digital transformation look like? Well, for starters, let's acknowledge that "digital transformation" is a really vague term. It's the kind of smart-sounding phrase that gets thrown around a lot in conferences and McKinsey reports and Harvard Business Review articles. The kind of expression that lots of people instinctively nod their head at, whether they know what it means or not. It could mean everything, it could mean nothing. Let me tell you what I think it means. You've probably seen the statistic-more than half of the companies that appeared on the Fortune 500 list in the year 2000 are now gone. Poof. Vanished off the list as a result of mergers, acquisitions, bankruptcies. The life expectancy of a Fortune 500 company in 1975 was seventy-five years-today you have fifteen years to enjoy your time on the list before it's lights out. Why is this happening? Instead of dwelling on failure and looking at all the companies that wen
