Why Recurring Revenue?
“Recurring revenue models provide a way to reach out to customers more frequently and build a more loyal customer base. Companies with recurring revenue models can also capture data sets that track consumer trends and preferences on a much more granular level than is possible with traditional models, which in turn leads to optimization of pricing and packaging, and consequently the uptake from and retention of targeted buyers. The ability to fine tune your offerings based on this data has enabled the consumerization of many B2B offerings. In other words, they are tailored to individual preferences instead of being a fixed, one-size-fits all package and price… Recurring revenue models have gained enormous traction with the convergence of two major trends: businesses recognizing the financial benefits of recurring revenue, and their buyers demanding the flexibility and personalization these models provide.”
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