We’ve seen the subscription model take hold in software, digital media and music, but it played an important role in field service long before Netflix ate Cable TV.
Companies that can convert one-time revenue like a capital purchase or on-demand service into a rental or service agreement can reap significant rewards including:
Customers pay more to defer a big-ticket purchase
Customers will pay for cost certainty and risk reduction
It’s easier to grow when you start the year with a base of recurring revenue
Improved productivity gained by managing predictable recurring work
Dramatic increase in valuation at exit
Have you introduced recurring revenue into your field service business and encouraged your sales and technical teams to promote it? Share your experiences in the comments below.
Learn more about field service transformation with Chapman Management Solutions and download all 30 Tips at www.chrischapman.ca.
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