Steve Jobs once said that customers don’t know what they want until you show it to them. This can very well be the mantra of product-centric companies that focus on developing novel and more advanced products regardless of the demand that is existent in the market.

But the Age of the Customer has given customers instantaneous access to information about products and services over the Internet, allowing them to compare and select brands that cater to their needs and wants. This has driven forward-thinking businesses to shift their focus on satisfying the needs of their customers, to the detriment of less agile companies that are more product centric.

Companies with a product-centric approach are at a competitive disadvantage because:

#1. Customers may not be interested in what you’re selling. This is especially true if you don’t have an established reputation. Customers may not believe you can deliver a first-rate product. You may have to resort to costly marketing initiatives just to drum up interest in your product

#2. It can alienate your customers. Inwardly focused companies whose only goal is to develop a superb product can alienate customers whose real wants and needs are not being met.

#3. You are vulnerable to market fluctuations. Today’s customers tend to compare benefits, features and prices of competing products across the market before buying. So, if your product costs go up and your customers are not willing to pay more, then your profits can suffer.

#4. It limits your growth. A product-centric business model tends to market and sell products transactionally — a ‘one-at-a-time’ approach that is focused on short-term product sales without looking at the long-term benefits of customer loyalty.

#5. Your competitors are more customer centric. Customer preferences, concerns and opinions are the driving force of customer-centric companies. Their product or service offerings are based on their customer’s changing needs, channel preferences and price sensitivity.

Product-centric companies have a natural tendency to sell siloed offerings that in the long run will not be beneficial to their customers. It’s critical to know your customers so you can satisfy their needs by adapting your offerings. Otherwise, you might lose your relevance to them, which may lead to loss of market share.

Taascom enables companies to embark on their business model transformation by helping them shift from a product-centric to a customer-centric business model. If you want to kickstart your business model transformation, contact us today.

Three years ago, according to a McKinsey survey, the online subscription market grew by more than 100% percent annually, with large players generating close to $3B in sales. From entertainment subscriptions to software subscriptions—and now even in the manufacturing and B2B space, such as tires-as-a-service, trains-as-a-service, power by the hour, etc—there are many reasons why a subscription-based revenue model has become the go-to platform of today’s businesses. Here are some of them.

It is a data-driven model.

The XaaS business model is a data-driven business model. Subscription providers can monitor customer behavior. That’s advantageous for both sides because businesses can use that knowledge to create better services for customers. The behavioral insight from membership plans helps companies shift from counting almost meaningless page views to analyzing more valuable engagement metrics like time spent. It’s a healthy dynamic between the vendor and the customer.

It ensures revenues for business and eliminates hassles for the customer.

Subscription business models charge a set amount in exchange for access to resources for a set period. Anticipated recurring revenues is the most apparent benefit of this business model, though there are other advantages inherent in the subscription pricing model for both customers and businesses. According to Aly Pinder, IDC’s Program Director for Service Innovation & Connected Products, “It’s inevitable: selling products-as-services will become a major component of OEMs’ businesses over the next decade.” On the side of the customers, what they get is a hassle-free, “pay per use” approach.

It helps boost customer acquisition.

Today’s customer landscape is comprised mostly of millennials who will trade ownership for lifestyle—and that’s what the subscription economy provides. It helps them avoid huge upfront payments for software, for example, but it also gives them that hassle-free experience. The better the experiences are for a business’s customers, the greater the number of acquisitions will be. More customers mean more recurring revenues. That’s why signing up for a subscription service must be seamless. Excellent customer experience will improve acquisition numbers over time.

Choose lifestyle over ownership.

As today’s customers — both in the consumer and enterprise space — expect on-demand access and service without the responsibility of ownership and maintenance, companies are beginning to transform their business model from offering products to offering the product’s value as a service, which offers the following business benefits:

  • Recurring Revenue Stream: New services and subscription-based models
  • Dedicated and Engaged Customer Base: Intimate sticky relationships
  • Predictive Instead of Reactive: Data analytics to provide customer insights and operational visibility

It’s evident that services, not products, are the future of business. Customer-centricity lets you offer subscriptions that will address your customers’ problems and satisfy their need for convenience. Taascom can enable your company to embark on your business model transformation by helping you make the shift from a transaction-based to a subscription-based revenue model. If you want to kickstart your business model transformation, contact us today.

We’re now in the age of continuous commerce, a new phase of capitalism where customers have more power than ever before.

Previously, the typical customer journey involves one default channel or a single path that customers loyally tread on when they are buying. But now, customers may shift their channel depending on their mood, moment, need and whim and can connect with you in any direction where the possible paths to purchase may number in the millions!

Moreover, the products or services (more and more products today are practically services with a physical component) are no longer fixed. It can be customized by the customer however they like it.

Commerce as a continuous ecosystem

The digital era has ushered in hyperconnectivity. With 51% of the world connected to the Internet, anyone can now join the digital commerce revolution and operate a business. This only means that virtually everything is now accessible to everyone who’s connected.

It’s important to point out though that continuous commerce doesn’t just begin and end at the transaction. And it’s more than just a shopping cart on a website. It means seamlessly integrating a brand’s shopping experiences across multiple environments throughout a customer’s lifetime to continually optimize points for purchase.

It also means keeping pace with customer demands. It’s no longer enough to meet their expectations; it’s critical to find ways to exceed them. Thus, it’s important to know the following principles of continuous commerce:

1. Omnichannel

  • Pertains to digital store and physical store—whether you’re shopping online, at the store or online at the store
  • Involves continuity for the brand and the customer across multiple channels, devices and locations to enable sales anytime, anywhere

2. Relationship

  • One transaction can lead to a lifetime value
  • Whether new to the brand or a loyal advocate, it’s critical to continually foster a good relationship tailored to the individual because not all customers are created equal
  • Maximize customer value by turning the first purchase into a profitable, lasting relationship that people are proud to share

3. Experience

  • Ensure an experience that will delight across every touch point
  • Customers expect anticipatory just-for-me experiences and they circulate their experiences to others via word of mouth or social media
  • The goal is to create emotionally positive experiences that serve the needs of customers

Learning how to create value exchange between the brand and the customer will help companies identify the opportunities that can lead them to build loyalty, advocacy and increase revenue for the business. Thus, companies have no choice but to remain agile, and to constantly innovate by incorporating new technologies in order to meet the high standards and expectations of the customers.

Taascom can help transition your business from a transactional economy to a relationship economy, grow recurring revenue, nurture a dedicated customer base that competitors will find difficult to disrupt, increase your valuation, and become predictive instead of merely reactive. If you want to kickstart your business model transformation, contact us today.

The XaaS (“Your Product X”-as-aService) business model has disrupted many business sectors. Transitioning to the XaaS model allows businesses to shift from high capital expenditures (CapEx) to flexible operational expenses (OpEx) while generating a predictable recurring revenue, nurturing a dedicated customer base, and obtaining predictive operational insights.

Here’s how you can transition your business to an XaaS business model:

Align your organization.

Department leaders must identify organizational goals and outcomes. Only when alignment has been reached can your organization move forward to specify the strategy, including identifying the data, resources, and technology to utilize as well as third-party vendors or new hires that might be needed. Alignment can entail:

  • A careful risk assessment.
  • Price point calculation based on realistic analyses
  • Reasonable contracts
  • Customer and market evaluation

Moreover, since XaaS involves a shift in the core of your business, be prepared to make changes across your organizational planning, research, development, manufacturing, marketing, sales and service.

Choose you XaaS model.

Once the entire business is aligned, determine the type of XaaS model your business wants to offer. Deloitte’s “Flexible consumption business models” identifies the following examples:

  • Unlimited subscription: Subscription plan with unlimited quantity, features, devices, etc. for a set period
  • Predefined subscription: Subscription with access to a specified quantity of the product or features for a predefined period, generally with a minimum commitment
  • Subscription plus overage: Subscription with access to a predefined amount for a specified period, with any overage billed based on actual usage
  • Freemium: Access to basic services for free, while charging a premium for advanced or special features
  • Consumption-based: Monetization on a pay-per-use basis, generally with no minimum purchase or commitment
  • Outcome-based: Monetization based on value delivered to the customer, measured as quantifiable outcomes

Make the shift.

As today’s customers are moving to subscription-based services—be it to consume media or to get work done—companies must transform their business model from offering products to offering their product’s value as a service, which offers the following business benefits:

  • Recurring Revenue Stream: New services and subscription-based models
  • Dedicated and Engaged Customer Base: Intimate sticky relationships
  • Predictive Instead of Reactive: Data analytics to provide customer insights and operational visibility

Services, not products, are the future of business. Customer-centricity lets you offer subscriptions that will address your customers’ problems and satisfy their need for convenience. Taascom can enable your company to embark on your business model transformation by helping you make the shift from a transaction-based to a subscription-based revenue model. If you want to kickstart your business model transformation, contact us today.

Is your company struggling to find solid answers to questions such as: How do we support our customers? How do we improve our services as we learn how our customers use them? And how do we deliver innovations as quickly as possible to the market? If yes, then it’s most probably the time to make the shift to XaaS.

The Age of the Customer has brought a change in how businesses offer their products and services. As customers now seek the convenience of access without the responsibility of ownership, the focus must shift from offering products to offering the capabilities of products delivered as a service. Hence, XaaS is on the rise.

“XaaS” (“your product X” as-a-Service)—also known as Anything-as-a-Service—is a subscription-based model where the relationship with the customer begins with the purchase. This business model has helped B2B companies generate continuous, predictable revenue from their products—and it is now eyed by B2C companies wanting to achieve the same.

Shifting from a product-centric to a customer-centric business model via XaaS enables companies to innovate faster and deepen their relationships with customers through data insights derived from IoT-powered devices. This puts the customer at the center of each interaction where businesses can analyze their unique behavioral data, thus creating significant contextual interactions that match every customer’s needs and wants.

Why transform to an XaaS business model?

The XaaS business model is a data-driven business model. Rolls-Royce’s XaaS success story is an example of how beneficial this model can be. Through its TotalCare program, Rolls-Royce rents jet engines to airlines on a “power by the hour” basis. It uses data from networks of IoT sensors to: (1) provide proactive maintenance, (2) help customers cut costs, and (3) boost operational efficiency, which can translate to millions of dollars per year for large enterprises. Rolls-Royce has explored how AI can help them further innovate product design and development.

Manufacturers are looking closely at the benefits of IoT-powered data services and embracing the XaaS model, as this model has helped companies quantify the value of their services. Stephan Sieber, CEO of Unit4, an enterprise software firm based in the Netherlands, says, “One of our clients, a large consulting firm, is now using machine learning and predictive algorithms to measure and report on the value they create for clients.” According to the findings in Unit4’s independent global study, three-fourths of senior managers and C-level executives said they believe XaaS has positively influenced their business model.

So, what are the benefits of transforming your business to an XaaS model?

As today’s customers expect on-demand access and service without the responsibility of ownership and maintenance, companies need to transform their business model from offering products to offering the product’s value as a service — or risk getting disrupted by competitors who do so. Here are some of the benefits of transforming to an X-as-a-Service business model:

  • Recurring Revenue Stream: Offer new services and subscription-based models
  • Dedicated and Engaged Customer Base: Develop intimate sticky relationships
  • Predictive Instead of Reactive: Leverage data analytics to provide customer insights and operational visibility

It’s evident that services, not products, are the future of business. Transforming to an XaaS business model lets you offer subscriptions that will address your customers’ problems and satisfy their need for convenience. Taascom can enable your company to embark on your business model transformation by helping you make the shift from a transaction-based to a subscription-based revenue model. If you want to kickstart your business model transformation, contact us today.

Have you noticed why, despite the resources that companies have at their disposal, many are still struggling to create meaningful relationships with their customers? Statistics show that 62% of consumers have terminated business with a company because of poor customer service. This is because businesses rely on product-centric engagement tactics in their attempt to build customer loyalty.

The Age of the Customer has brought a paradigm shift in how businesses offer their products or services. The focus should no longer be on brand building but on the wants and needs of the customer. If you build your products around the wants and needs of your customer, you are removing the guesswork out of the equation. This is what customer-centricity is about.

Customer-centric engagements put the customer at the center of each interaction where businesses can analyze their unique behavioral data. With this, businesses can create significant contextual interactions that match each of their customers’ wants and needs.

Do you really need to transform from a product-centric to a customer-centric business?

The short answer is: yes. In all transformational processes, customer experience has always been an essential driver. Forrester Research found that 59% of consumers rated their experiences as just “Ok” while 23% rated theirs as “poor” or “very poor”. By improving the customer experience, you are fostering customer loyalty. And customer loyalty stems from customer satisfaction.

Amazon is an example of a customer-centric company—everything they do revolves around the customer’s needs and wants. Their unique service platform gives them both the data and the capability — through advanced algorithms — to learn and predict what site visitors want. Jeff Bezos said that “…being customer-focused allows you to be more pioneering.” Customer-centricity gives companies the advantage to create the products and services that will be purchased by customers — and a happy customer is very much likely to be a repeat customer.

So, what are the wants and needs of today’s customers?

Today’s customers expect on-demand access and service without the responsibility of ownership and maintenance. Traditionally, the customer relationship ends when they purchase your product. But with a subscription-based model, also known as “XaaS” (“your product X” as-a-Service), the customer relationship begins with the purchase. This means companies need to transform their business model from offering products to offering the product’s value as a service. Here are some of the examples of transforming to an as-a-Service business model:

  • From selling software applications (Microsoft Word), transform to offering software subscriptions (Microsoft Word 365)
  • From selling cars, transform to offering transportation on demand (Uber)
  • From selling compressors, transform to offering Compressed air-as-a-Service
  • From selling CT scanners, MRI machines, and X-Rays, transform to offering Medical Imaging-as-a-Service

It’s evident that services, not products, are the future of business. Customer-centricity lets you offer subscriptions that will address your customers’ problems and satisfy their need for convenience. Taascom enables companies to embark on their business model transformation by helping them shift from a transaction-based to a subscription-based revenue model. If you want to kickstart your business model transformation, contact us today.

Enabling your transformation into an as-a-Service business.

We enable companies to embark on their Business Model Transformation journey and get to market faster while reducing their technology risk and investment.
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