The customer pays a regular fee, typically on a monthly or an annual basis, in order to gain access to a product or service. While customers mostly benefit from lower usage costs and general service availability, the company generates a more steady income stream.
How they do it: For SAP’s cloud platform, subscription terms start at €399 per month. Customers gain access to a dedicated dedicated SAP HANA instance and other services.
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How they do it: Blacksocks sells various subscriptions, allowing the customer to make a 1-time purchase and receive new pairs of socks multiple times per year withouth having to re-order every individual time. The value proposition is to categorize socks as consumables and simplify its customers life.
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How they do it: With its subscription service ”Amazon Prime” Amazon offers free and faster shipping for certain products as well as access to exclusive media content offered on its affiliated platforms (such as audio books on Audible.com).
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How they do it: The Swiss Federal Railways (SBB) offer a range of subscription services, such as the ”General-Abonnement” and ”Half-Fare” cards. These products are renewed anually.
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How they do it: Hilti’s ”Fleet Management” allows customers to subscribe to a fixed-term contract with monthly payments to get a defined amount of its latest tools. This contract includes the exchange of tools for the newest models as well as service and maitenance. The customer avoids a upfront investment and has an easy way to budget the tool costs going forward.
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