Business is changing all over the world & the only thing slowing it down in the UK is our poor bandwidth & connectivity…
The UK is ranked a lowly 35th in global internet speeds. Which is even lower than Madagascar. I’m not making it up. It was confirmed in a recent Guardian article.
And when we catch up. Business change will start to accelerate in the UK too.
We only need to look across the pond & see how others have changed business models. And are building subscription-based products & services.
It’s not just driven by consumer demand. It’s also driven by the organisations too, who are looking for inventive ways of gaining loyalty from their customers & locking out the competition.
I’m not a big advocate of Amazon (don’t get me wrong they’re service is fantastic) as I think they’re having a real negative effect on our high streets. But I’m still amazed about ‘Amazon Prime’.
The numbers are mind blowing. In the US over 1/2 of homes are signed to ‘Amazon Prime’. That’s 90 million monthly subscriptions, which make Amazon a guaranteed $9 billion a year.
Amazon have been very clever. This buys loyalty. Perceived free & fast delivery make people buy more stuff from Amazon.
Another example is Netflix. Founders Reed Hastings & Marc Randolph created a vision of what the future would look like (streaming video).
Back in 1997 internet speeds may have stopped most people. Not these guys. They still created a subscription model based around posting movies. Blowing Blockbuster completely away soon as internet speeds allowed streaming.
Like these examples. Subscription models need to be designed to solve a perceived problem with an improved service for less money. Which in return leads to long term customer loyalty.
Things are changing. And it won’t be long before most of the UK are comfortable paying for most things by subscription. We’re already doing it for things like utilities, streaming services, mobiles phones & internet.
So why wouldn’t we do it for cars (including insurance, service, repairs & tyres), kitchen appliances & even an expensive pair of shoes. Any product or service that can be monitored to measure when service is required could be turned into a subscription payment model.
For us it’s about printing & business phones. We’ve worked out a way to provide a service that includes the equipment, replacement cartridges or talk time with a maintenance service to fix or replace things if they break. In a fixed monthly with an improved service for less money.
But what about you. How can you change your business model, so the products & services you provide can be brought together in a subscription service that solve problems & saves money.
The futures changing. It’s time to make sure you’re changing too.