Networkization - Episode 2: Why Subscription Matters in Servitization
Shifts Risk & Responsibility
In a pure product sale, the customer assumes all risk once an asset leaves your warehouse, and the vendor “run with the money”. In a subscription model, the vendor retains ownership and is responsible for uptime, performance, and ongoing service. This shift requires robust operational and financial processes.
Ensures Recurring Revenue Visibility
Rather than recognizing revenue in one lump sum, subscription contracts establish predictable billing schedules, monthly, quarterly, or usage-based. This predictability is critical when you eventually layer on #Networkization (customer-premise devices actively “talking” back to you).
Accelerates Customer Adoption
Many buyers prefer a consumption, based model over large capital expenditures (CapEx). By lowering the barrier to entry, you can attract a broader addressable market and build stickier relationships from Day 1.
If you’d like to explore how to build a rock-solid subscription foundation for #Networkization, download our full white paper at
https://NETWORKIZATION.COM or schedule a free consultation at https://calendly.com/customerbridge
#Servitization #Networkization #Subscription #Quote2Cash #AgnosticDigitalTransformation