As you now may know, the subscription-based service market is booming. Recent advances in technology, including cloud computing are the primary drivers in the shift to new consumption and delivery models.
- According to an October 2013 study by the Economist Intelligence Unit, The worldwide market subscription service model is estimated at $500 billion.
- Market research firm, Gartner Group, states that 80% of a company’s future revenue will come from just 20% of its existing customers, who use a subscription-based service model.
- According to the Economist Intelligence Unit research, four out of every five businesses are currently seeing changes in how their customers access their services.
- According to a study conducted by the Economist Intelligence Unit, 51% of companies are utilizing new models for pricing and delivery, such as subscriptions and rentals, rather than an outright sale.
- Emerging as the primary means to deliver services and goods, subscription based services are being implemented as a core part of 40% of companies’ business.
- Gartner, a market research firm, predicts that by 2015, 35% of revenue from Global 2000 companies be generated via subscription- based services.
- A recent study by the Incyte Group, an independent research group, discovered that out of 1,000 U.S. businesses, nearly 50% had adopted or were planning to adopt recurring revenue models.