The Case for Modernizing Lead to Cash
Customers understand that the benefits of products and services sold via the subscription model include predictability and the sharing of risk on a purchase with the vendor. Offering this model is now table stakes for many organizations. Individual consumers are accustomed to the subscription model in their personal lives and want the same opportunity in a B2B context to extend the cost of goods or services over time, or to scale up or down on short notice without contract changes.
That expectation is spreading across industries as mixed revenue models become more prevalent. Cell phones are an example of this, where the phone itself is an amortized loan, the data plan is paid for on a subscription basis and data used beyond the subscription limit is usage-based. Then there are the adjacent services and products, such as support packages and insurance, which are billed via a flat fee. For B2B organizations to remain competitive, individual contracts within a mixed revenue model must be negotiated as part of the whole process, providing a seamless experience for customers. We assert that by 2026, over one-third of all organizations will deploy a mixed revenue model that includes subscriptions and usage pricing in addition to one-time sales as companies make adjustments to remain competitive.