Taascom playbook - Your Business Transformation Journey Begins Here

1. Your Transformation Journey begınS HERE WE ARE TAASCOM Tasscom stands for “The As A Service Company.” We enable companies to embark on their Business Model Transformation journey and get to market faster while reducing their technology risk and investment. We work with CXOs , P&L heads, Sales, Service and Marketing heads who are keen to reshape their offerings to customers. Together, we work as a tag team to take an offering to market, test and validate, apply lessons learned, and then scale and expand offerings. Find us at www.taascom.com Reach us at info@taascom.com

2. TABLE OF CONTENTS 27 03 Data required for the service 27 Device details 29 Customer details 31 Shipment details 33 Billing details 01 INTRODUCTION - WHAT’S IN IT FOR ME 37 Ownership of the data 39 Customer consent 05 01 CUSTOMER ISSUES 40 Application data 09 When to buy 42 EULA/Privacy/Data collection/analysis/purpose/sharing 10 What to buy 10 Where to buy 13 02 Offer - Auto-replenishment as a service 16 Auto-detection of when to replace 17 Auto-detection of what SKU is compatible 17 Auto ordering 21 Customer Value 23 OEM/Service provider value I II

3. 43 65 04 Stakeholders/Responsibilities 05 Technical deployment architecture 47 65 Product Management of the offer Customer Experience/UX 48 73 Pricing of the offer Integrated into existing mobile app 79 New mobile app 51 Marketing of the offer 83 Web portal 53 Sales 89 End to end 54 Fulfillment 95 Demand Sensing Agent Deployment 55 Billing 101 Cloud 57 Support/Call center 107 Geographies 58 Customer success management 111 Data location 61 Customer engagement 115 Customer engagement 119 Application integration 63 Profitability/KPI management 123 Business Workflowend to end 127 Actionable alerts to stakeholders 131 Analytics 135 Dashboards/BI/Visualization/Portals 139 Security - access control, roles 143 Customer lifecycle management 147 Subscription billing integration/Ecommerce Integration 149 Stakeholders UX 155 Connectivity III IV

4. INTRODUCTION Welcome to The Age of the Customer Disruption is happening now. What are you doing about it? Driving the disruption are the customers themselves, who now have the unprecedented ability to directly influence businesses. Welcome to The Age of the Customer, who hold the power of information and choice right at their fingertips. Customer expectation travels across industries, and today’s customers demand convenience and ease-of-use regardless of the product or service. They want the convenience of service without the responsibility of ownership and the hassles of maintenance. Fortune 500 companies used to take 20 years to reach a valuation of $1B. Today’s digital startups do it in four years. Pause for a moment and allow that to sink in. Fortune 500 companies used to take $1b Disruption is now happening across all industries, and no one is immune. Armed with new digital tools — mobile, cloud, analytics, sensors, AI, ML, IoT — and powered by Big Data, today’s movers and shakers are transforming the business landscape and tapping new profit streams. 20 years to reach a valuation of $1B. Today’s digital startups do it in four years. 01 02 © 2020 TAASCOM All rights reserved www.taascom.com

5. “ This tectonic shift in customer preference is become a disruptor instead of a disruptee BENEFITS OF XAAS TRANSFORMATION underpinning the move to subscription-based services in both the B2C and B2B spaces. For customers, the value of subscription-based services is clear: no expensive upfront Recurring Revenue Stream investments, no maintenance expenses, and Gartner projects that by 2022, 60% New services and & subscription-based pay-per-use/pay-only-for-what-you-use of asset manufacturers will offer models convenience. For enterprises, however, the outcome-based service contracts, value of shifting to an XaaS (your product X as up from less than 18% in 2018. This Predictable revenue stream a Service) business model is even more playbook aims to provide you with compelling: a recurring and predictable the actionable knowledge you revenue stream, a dedicated and engaged need to transform your business to Dedicated & Engaged customer base that competitors will find a subscription-based model so you Customer Base difficult to disrupt, and a predictive instead of can join the exodus and become a Intimate sticky relationships reactive operational model driven by data disruptor instead of a disruptee. analytics and usage insights. Competitors will find diffucult to disrupt Predictive Instead of Reactive Data analytics gives you both customer insights and operational visibility Be predictive instead of reactive 03 04

6. SPEED AND EASE Retail customer expectations are migrating into the B2B space, McKinsey revealed. For B2B companies Identifying
 Customer Issues – including oil and gas, mining, utilities, automotive, healthcare, etc., - speed and ease of doing business are a top driver of overall customer satisfaction and loyalty. 76 % SUBSCRIPTION MODEL In an increasingly complex supply chain world,
 understanding and fulfilling growing customer
 for a seamless customer demand are key. experience “ Multinational information of consumers expect Today’s customer expectations vary across technology company companies to understand industries. In e-commerce, according to In retail, consumers Hewlett-Packard (HP), for example, their needs and expectations McKinsey, churn rates are high, and has identified a gap in its B2B expect to find what consumers quickly cancel services that don’t deliver superior end-to-end experiences. market operations for a more they are shopping for seamless ink replenishment In retail, consumers expect to find what they - whenever and solution. It developed a subscription are shopping for – whenever and however however they decide they decide to shop. Loyalty must be earned model, where the service According to Salesforce, 76% of consumers expect every day. It is more important for to shop. Loyalty must automatically delivers ink to the companies to understand their needs and expectations. By consumer-goods companies to get the basics 2020, 75% of B2B buyers expect companies to anticipate be earned every day. customer before they run out. With right because a single out-of-stock can lose a their needs and provide relevant suggestions before they shopper forever. this offering, HP was successful in initiate contact. delivering a seamless customer experience.



 05 06 © 2020 TAASCOM All rights reserved www.taascom.com

7. increasing operational complexity. “ So, how do companies stand out When to buy STAGE 1 from the competition and get in INCREASING COMPLEXITY front of the customer with value? Demand Sensing
 Identify customer pain points and (identification the JIT replenishment) Serving thousands to millions of issues. customers every week and sourcing merchandise from large numbers of suppliers globally could be taxing. Supply WHAT TO BUy STAGE 2 chains are increasingly faced with Shop anywhere, fulfill anywhere What is SKU?
 expectations make inventory (Is it Cyan or Black cartridge
 management more complex than & the part number) ever where to buy STAGE 3 Demand can be very tough to forecast Depending on the location and the SLA
 All of these have to ensure that the customers needs are met JIT, and inventory stock (from manufacturing (least cost to ship JIT) There are three stages to identifying customer to OEM to dealer to customer) is neither excess (leads to cost) or out (reduced revenue, SLAs not being met issues. Organizations in all parts of the supply or bad customer experience) and the supply chain network need to plan smart and optimize The consequences of this is to arrive at : costs are optimized for stocking and shipments replenishment. So, regardless if the orders are (inventory and time). This becomes even more What to stock? fulfilled, there is just the right amount of important with inventory that is expensive, fragile, or How much to stock? inventory without running out or carrying bulky (space costs) or has a certain shelf life or needs When to stock? overstock. to be maintained at a certain conditions (e.g. temp/humidity.) Where to stock? 07 08 © 2020 TAASCOM All rights reserved www.taascom.com

8. When to buy When to buy WHAT TO BUY just in time ınventory STAGE 1 STAGE 1 STAGE 2 Ordering the right amount of product, to be delivered at the Systematic order management to avoid excess inventory and unnecessary big markdowns correct time, to the best place This strategy is crucial in an end-to-end demand planning process. It is When organizations fail to define the right time to place an Organizations need to define the order quantity. In this stage, organizations order, inventory issues that arise are far-reaching: important to optimize order and need to pull data manually or from existing systems to gather a comprehensive set of inventory metrics, down to the SKU level. replenishment activities and seasonal Overstock promotions to increase efficiency and SKU tracking is a task far beyond the capabilities of human planners. This daily Cost reduce inventory costs. This also manual activity is: Obsolescence includes processes for handling exceptions, including big spikes in Time-consuming Stock-out demand that are expected or otherwise. Painful for tracking compatibility However, in principle, the JIT strategy is Prone to error when identifying genuine or knock offs JIT Value
 very difficult to make it work. Proposition Just in time inventory Minimal capital expenditure WHERE TO BUY STAGE 3 Low inventory levels Low inventory counts Supplier selection reflected by transaction shopping involves: Quick moving inventory Periodicity Price/value of money Match customer demand Trust of the vendor/product Time and effort Delivery time A painful repetitive process 09 10 © 2020 TAASCOM All rights reserved www.taascom.com

9. GUIDE QUESTIONS FOR READERS IOT IS THE FUTURE OF ConsuMER GOODS INDUSTRY As such, we encourage businesses to think through IoT is set to revolutionize the the following key questions when determining consumer decision journey, especially their paths: by enabling more automatic replenishment. What is the problem you are trying to solve? What are the solutions and scale needed? What technology resources are internally available? Do you have the ability to In a recent article, McKinsey has implement that path forward? named the Internet of Things (IoT) as one of the 10 disruptive trends that In B2B and B2C business models, the disadvantage of What is the scale of the impact at stake? the fast-moving consumer-goods enterprise information construction keeps companies from industry cannot ignore in the next developing customer service and inventory management. What is the timeline for success? five years. In many categories, IoT is According to a recent study, business processes based on 1 set to revolutionize the consumer value chain should be restructured to achieve utility In the forthcoming pages, we’ll take a closer look at optimization. decision journey, especially by a business model that will shape the enterprise of enabling more automatic To win in the coming decades, organizations need to capture the future, and how you can leverage it to replenishment. new opportunities and embrace substantial changes to their transform your organization. supply chain management approach. However, not every solution is available on the market, and not every solution perfectly fit and address your unique business needs (e.g. replenishment). 11 12 1 1. Zhao, Li &Guo, Shouting. (2012). The value creation of B2B2C E-business mode based on SaaS. Journal of Electronic Commerce in Organizations. 10. 1-12. 10.4018/jeco.2012070101. © 2020 TAASCOM All rights reserved www.taascom.com

10. 61 % Organizations need automation, a system that centralizes multiple data sources to efficiently manage stock. However, a single product offering is Offer Auto- replenishment
 as a service insufficient to successfully automate the entire operation. of organizations are flexible automation 60% of manufacturing tasks could be automated In industrial manufacturing (automotive OEMs, 77 % dealers, tier-one suppliers, equipment Inventory management is the cornerstone of every manufacturers, component suppliers and product manufacturing operation but balancing supply and companies): demand is a constant challenge. Manufacturers 61% of organizations are flexible automation must ensure they have enough materials on hand of organizations view the 77% of organizations view the solution as relevant while minimizing stockpiling. solution as relevant “ *Source: McKinsey &Company Manufacturersmust B2B markets are an extremely difficult environment for product replenishment. This ensuretheyhave pushes product replenishment function in B2B enoughmaterialson firms to require multiple solutions and services. To achieve that delicate balance, handwhile businesses can no longer rely on manual processes to accurately forecast demand. minimizing stockpiling. 13 14 © 2020 TAASCOM All rights reserved www.taascom.com

11. Auto-detection of when to replace Replenishment is increasingly becoming a highly automated function in the distribution world. To compete and win the game, businesses can Continuous replenishment program reduces variations and uncertainties in demand, thereby consider solutions that can transform reducing the need for surge production capacities their replenishment systems – and large inventories . replenishment as a service. Businesses need to take into consideration the supplier’s ordering rules, as well as anticipated changes in customer demand and changing market GUIDE QUESTIONS FOR READERS conditions to arrive at significant improvements in : The customer’s replenishment decision determines the availability of inventory needed to fill orders and, in turn, the cost of When creating a new offer, in this case, processing backorders and the risk of losing SAFETYSTOCK replenishment as a service, organizations should orders to competitors. consider three questions: LEAD TIME Regardless of the industry, businesses can What type and level of replenishment service put the replenishment function on autopilot does your business plan to support? and let the service do nearly all the work DEMANDHISTORY including: What type of technology is required? Does it SEASONALITY need to be more advanced and involving a Auto-detection of when to replace value differentiator? Auto-detection of what SKU is compatible Auto-ordering As supply chain environments evolve, what type of replenishment environment will your offering need to support? 15 16 ©2020 TAASCOM All rights reserved www.taascom.com

12. Auto-detection of what SKU is compatible TRANSACTION SUBSCRIPTION Rather than offering predefined templates, A simpler approach would be a subscription-based Calculate recommended inventory levels for each businesses can present customers with an offering ordering process of continuously replenished stock-keeping unit (SKU) that range from several that is based on what works for the latter.

 products. hundred thousand to tens of millions. When replenishment as a service matches the supply to the demand, a transaction happens. This No user involvement - Auto-ordering way, customers have flexibility while also not machine orders for itself having to worry about when to buy. You’ve invested in auto-detection of crucial replenishment parameters, so why leave things there? Automated reminders, notices and service suspension Among the main appeals of replenishment as a service are the Customer consent to buy
 ease and convenience it provides to customers. To compete, when required - single click organizations need to focus on removing roadblock from the replenishment process. Flat or one-time charge for “ With auto-ordering, the goal is to simplify replenishment as-you-go users decisions and minimize friction through an automated SIMPLIFY
 AND MINIMIZe customer journey. The auto-ordering feature gives customers access to the fast lane: Any billing cycle – monthly, weekly or daily With auto-ordering, the goal is to simplify 1 2 3 replenishment decisions and minimize friction through an automated customer Auto-bill journey. transaction Subscription based on usage 17 18 ©2020 TAASCOM All rights reserved www.taascom.com

13. Everycompanyisessentiallypartofatleast Auto-bill based on usage onesupplychain. Thesechainsaredefined byOEM,whoprovideallcapabilitiesinthe creationoftheendproduct,andcustomers, Organizations can also opt for metered billing, where they are charged based on their actual usage of the whopurchaseit. service. Businesses can make it so that customers are charged with an appropriate per-unit fee for any consumption. OEMs/service providers are using benchmarks and metrics to optimize supply No user involvement - machine GUIDE QUESTIONS FOR READERS chain performance. However, because orders and bills based on usage collecting and analyzing data is a complex task, organizations should select only solutions that meet their needs and, most Track customer consumption Organizations that convert customers with a click of service importantly, improve performance. or a voice command are in a great position to create a lifetime of value. To guide you on your Businesses should also understand that transformation journey, here are a few questions Support complex usage-based clients require value from their partners. to answer to know your next best step: model Throughout a transformation journey, organizations should transition customers How do plan to prepare your business for the smoothly and continue to support ongoing replenishment economy? engagement. To compete, organizations need to focus “ Do you lose customers to complicated on removing roadblock from the sign-ups or ordering systems? Now, we look into the customerand replenishment process. OEM/Serviceprovidervalue of Do you have a strategy in place to ensure a replenishment as a service. smooth replenishment process for customers? 19 20 ©2020 TAASCOMAll rights reserved www.taascom.com

14. CUSTOMER VALUE GUIDE QUESTIONS FOR READERS Cost Savings Inventory costs savings We have established that replenishment error can lead to overstocks and dead These are just some of the added values presented No impact on business due to out of stock stock. With replenishment as a service by replenishment as a service. Organizations Discounts with subscriptions vs where businesses can achieve JIT should rigorously reduce costs and provide a transactional purchase inventory, they will never run out of rewarding experience throughout their supply Time and money of human labor involved supplies and will not experience chain. Key industry players need to seek ways to in repetitive purchasing overstock. increase the value-added to their products and services. Here are some questions that could help Convenience you realize such value: The one-time subscription option takes care of repetitive purchase cycles, allowing Do you have access to specialized businesses to focus and spend more time Replenishment customer + technologies, process capabilities and on core activities. as a service touchpoints expertise on inventory replenishment? = Are your customers willing to pay for added LIFETIME VALUE value? Are you willing to find customers that are As we've discussed, the main appeals willing to pay for value-added services? of the replenishment economy are cost savings and the convenience it How do you plan to meet customer demands offers to customers. for higher overall quality? 21 22 ©2020 TAASCOM All rights reserved www.taascom.com

15. OEM/Service provider value Inventory cost reduction As Gartner would put it, the availability of supply chain data provides participants the ability to Most recently, OEMs and other service extrapolate the current environment to better providers have begun to adopt efforts to predict and understand future scenarios. optimize their performance. Supply chains are increasingly integrating key In this case, advanced analytics will be deployed in business processes, from raw-material real time or near-real time for dynamic suppliers through end users that provide replenishment. Using real-time or near real-time products, services and information that usage data, it predicts: add value for customers. What SKU to stock How much to stock Replenishment as a service will be able to: In this case, OEMs can utilize When to stock replenishment as a service to optimize Capture lifetime revenue Where to stock the key process of inventory Arrest leakage of revenue to 3rd party / clones / replenishment. This strategy increases compatibles/ competition This gives not only good lead time in mutual benefits for OEMs and service manufacturing but also a significant inventory providers in the long run. Reduce inventory cost cost reduction, which is a big aspect of the balance Optimize supply chain sheet. 23 24

16. Supply chain optimization Replenishment as service can connect disparate sensor technologies across the enterprise. The auto-replenishment capability ensures that bins are stocked just in time. Based on predictive analytics, replenishment as a service drives: GUIDE QUESTIONS FOR READERS Intelligent stock ordering JIT Inventory management at the right locations - OEMs/dealers/customers Despite these benefits, OEMs may elect to retain current systems Stocking at the right location to reduce transport costs and ignore capabilities that provide a sustainable competitive advantage. To help you decide, here are some questions that might Optimize costs of delivery help you figure out the best next step for your organization: Improved lead time Do you wish to reap the benefits of improved focus and simplification of your in-house operations? Do you value reduced costs manufacturing operations, including reduction of in-house inventories? How do you plan to make use of a growing body of tools for optimizing key business processes, including inventory replenishment? 25 26

17. Sale automatically GUIDE QUESTIONS FOR READERS triggers a replenishment request Here are some questions to answer to Data Required for the Service Tracking of low on help you determine what you need to supplies triggers a replenishment request position your company for a new initiative: New SKU replacement means a complete Do you have the resources and tools replenishment to develop your service? Creating a new product offering – and fulfilling the Have you established a learning B2B firms would want to move from a demands of a digital customer – requires insights relationship with each customer? company that provides replenishment as a about inventory conditions that inefficient and product to helping customers improve Have you identified your company's infrequent traditional audit settings often miss. productivity and reduce downtime by offering readiness to launch a large-scale replenishment as a service, driven by insights service offering? from data analytics. This way, organizations To orchestrate a new offering, organizations need to outline the specific can extend the service offering to reach activities needed to roll out the new service. The resources and datasets, which emerging and service-oriented domains. will provide continuous visibility of what's happening across the business, are to be identified, defined and acquired. Usage Supply Levels Current Inventory Drawdown SKU 27 28 © 2020 TAASCOMAll rights reserved www.taascom.com

18. creatıngabuyerpersona DEMOGRAPHICS Helps target offering Influencebuyingdecision Company Type, Location, Level of Management, Buildandmaintaincustomers Age Setpriorities Positionforalarge-scaleinitiative Psychographics Helps promote service depending on what Customizeservicetomeeteachcustomer’sneed clients value In-depth profiling on how buyers think and respond Customer Details GUIDE QUESTIONS FOR READERS Brands affiliations, spending patterns, replenishment habits Knowing your target Companies leveraging quality data, including detailed customer and taking steps profiles and customer preferences, can deliver far more Engagement to maximize the value of personalized solutions to individual customers. To get Helps determine clients who are ready for customer data will help started, here are questions you might want to consider the right offer improve every metric of the asking your organization now: new offer. When, where and how the buyer engage with your services Do you have access to customer data that will help B2B market companies you understand how the service could work for sharing and using customer them? Purchase behavior data are seizing incredible Helps identify patterns and segments to Have you begun to stockpile some great customer opportunities, through data increase sales profiles to leverage in your new offer creation? analytics, to improve business performance. Historic information on what, when, where and Do you have needed data to address seasonal how clients buy product or service campaigns and changing customer trends? 29 30 ©2020 TAASCOM All rights reserved www.taascom.com

19. GUIDEQUESTIONS FOR READERS INDUSTRY : Healthcare PAIN : Temperature-sensitive healthcare product Analyzing shipping data can reveal opportunities SOLUTION : More options for for your customers and their supply chain. Here temperature-sensitive shipments are questions you need to answer to help you reveal redundancies and inefficiencies that are often overlooked: INDUSTRY : Automotive Shipment Details How often do you review customer shipping PAIN : Outdated flat shipping rate profiles? Delivering the right offering to the right SOLUTION : Replenishment order Do you have a full understanding of shipping individual at the right time is the key to independent of truckload profiles to make informed choices on contract considerations winning more clients. negotiations? Shipment information is another data to Is your approach effective in letting your extract and lookup from any data source to customers know why you’re valuable to them? integrate into the new service offering. There is no one-size-fits-all client, and there is no one-size-fits-all service either. Organizations need to aggregate, map and normalize raw shipment data, and then apply Small rate changes Travel distance business logic that drives the new service. Shipping spend On-time performance When you own your numbers, it would be Package measurement easy to spot mistakes and challenges that need to be addressed. When B2B firms have extracted and mapped out relevant customer details, they will succeed in laying out this disparate data as drivers of personalized customer experience. 31 32 © 2020 TAASCOM All rights reserved www.taascom.com

20. GUIDE QUESTIONS FOR READERS Client billing information: Subscription Payments Keeping track of billing details from usage to crucial data points will help your organization Collections Invoice understand how your services are performing. To help accelerate time to market of new service offering, here are questions you need to answer: Can be shared between: Is your organization prepared to make BILLING Details Customer support significant changes to existing billing processes? Gathering insights on how customers are Sales consuming services and how much they are How do you ensure data consistency across willing to pay is essential if organizations the offer-to-cash life cycle? want a flexible system. Pricing teams How often do you review your enterprise data Relevant client billing information, including lake for billing operations governance and When B2B firms have identified this wide range of usage data, offer promotions, offer rates, resources? billing information elements, they will be subscription plans, add-on, upgrade, successful in eliminating the need for customers renewals, discounts and adjustments, Do you ensure that all of your client billing to manage multiple vendor relationships across provides organizations with consistent, data are secured in one place? the supply chain. secure and high-quality master data required to build a new service offering. This data will Organizations need to perform a thorough help shape and accommodate future growth business capability assessment, which will help needs. identify capability gaps, align architecture to future needs, and define an actionable transformational plan. 33 34 © 2020 TAASCOMAll rights reserved www.taascom.com

21. “ Data considerations CASE IN POINT We have outlined the existing data and new data needed to create new service opportunities. To In January 2019, Google was hit with a complete the business’ transformational plan, $57 million GDPR fine. The massive organizations should also take a look at these three penalty was the first to be levied under factors: the GDPR, according to The New York Times. Ownership of data Customer consent invalidly Application data lackof obtained + customer transparency consent In the United States, there is no central Under the European Union privacy law, known as = authority that enforces data privacy laws. GDPR the General Data Protection Regulation (GDPR), does not exist in the US, but different states are businesses are required to protect the personal failuretocomplywithGDPR evolving their data privacy policy; California is data and privacy of customers. It enhances the obligations leading the pack with specific guidelines for IoT rights of an individual, with an extended right of = implementations. access, a right to rectification and new rights to data portability and erasure of data. The recordfineleviedbyFrenchdata So, how can businesses generate the greatest regulations state that individuals have to explicitly regulatorCNIL possible value from user data without consent to the acquisition and processing of their compromising on compliance? data. 35 36 © 2020 TAASCOMAll rights reserved www.taascom.com

22. Ownership of Data What actions have you taken to keep data encrypted and securely backed up to protect customer information? Data, not oil, is now the world’s most valuable resource, according to The Economist. This means Are you prepared to host training events that now, more than ever, smart handling of data is for clients and associates on GDPR to help a recipe for business success.

 understand and reassure stakeholders? In the context of the GDPR, data owners are accountable for the quality, integrity and “ protection of their data space. GUIDE QUESTIONS FOR READERS But first, organizations should define who “owns” Data, not oil, is now data and what data ownership really means. 

 the world’s most Most organizations would have some good practice valuable resource, already in place. Here are questions you can use to know We believe asking the right questions helps. Data if your organization is prepared in meeting data according to The ownership should become clear if you answer these protection obligations: Economist. This questions:
 means that now, Who owns the data? Who is most impacted if data is incorrect? more than ever, smart Who has the ultimate authority to decide data handling of data is a Do you have a secure storage area for your changes? archives? recipe for business Who owns related data attributes? success. How often do you review and update your terms of business, privacy policy and all forms and Where an individual exercises any of their data contracts to ensure they are in line with data protection rights, businesses should be able to protection guidelines? respond accordingly. 37 38 © 2020 TAASCOM All rights reserved www.taascom.com

23. Application Data Customer Consent When implementing a new project, businesses must document: CRMs are powered by specific data Businesses need to understand the about customers and prospects. Other dataprotectionconsiderations risks of getting things wrong. In this enterprise data may be contained in a case, organizations could face + third-party repository. substantial fines if they get their actionstakentoensuredataminimization consent mechanisms wrong. andprotection So, how can businesses understand any project. – GDPR, Article 25 “ and ensure that data associated with GUIDE QUESTIONS FOR READERS any application or system can be implement appropriate measures separated, accessed and utilized As far as handling customer consent is concerned, consider outside of that particular system? these questions : Is it necessary to get customer consent before Organizations are required to implement when setting up a new service offering. “ using the data? appropriate technical and organizational present legal agreements measures designed to implement data Why would customers allow you to access the protection principles from the outset of data? How often do you review and update privacy notices to include an explanation of transparency To contend with different issues, requirements? companies can present legal agreements Do you host training events for associates on data processing, legal rights and compliance with GDPR? How often do you review all processing functions and systems, where consent is concerned? 39 40 © 2020 TAASCOM All rights reserved www.taascom.com

24. Delivering competitive new service offerings pose new challenges. To contend with different issues, companies can present legal agreements when setting up a new service offering. How is personal information shared or End-User License Agreement (EULA) transferred? How is data linked to and interacting with third party Understand practices in relation to accounts protected? personal data GUIDE QUESTIONS FOR READERS How are log files used? To what extent is customer data analyzed and used? How your organization handles the ways by which User Privacy 
 you apply data is integral to ensuring compliance, as DATA COLLECTION How to maintain and access accurate information? well as protecting your stakeholders. Consider these What privacy and data protection laws protect questions: What information is collected? customer information? Why is the information collected? Is the data available elsewhere? How to delete personal data? For what purpose? Is the data trapped in a propriety software How to raise concerns or complains regarding compliance? product? Data Analysis
 Can you get to customer data from third-parties, DATA sharing
 such as SAP or CRM? Success in collecting, analyzing and making sense data usage of all this required data will influence how you build the new service offering. In the next chapter, How long will the collected data be stored? we will uncover how to leverage this data to define stakeholder responsibilities. How is customer information protected and stored? 41 42

25. 75 % convert audience into customers Stakeholders/
 Responsibilities All this focus on the customer By 2023, Gartner predicts necessitates streamlining methodologies that 75% of companies that so that businesses can design the perfect sell directly to their experience that will convert their consumers will offer audience into their customers - and subscription services. In fact, maintain that relationship. However, about 70% of businesses there is one other important component The age of the customer has revamped business today are now deploying or to business success in today's models all over the world. Since customer considering subscription economy: managing subscription-based solutions. experience is now an integral key to business stakeholders and their responsibilities. success, businesses must adapt their strategies to make sure that they know exactly where their 18 % customers are, and they can meet them there. The subscription economy is among the most important evolutions that the business world has seen in recent years. Growing by an estimated 18% in compound annual revenue per year, subscription-based businesses raked in at least 300% more profit over the last couple of years. And by 2023, Gartner Growing by an estimated 18% in predicts that 75% of companies that sell directly to their consumers will offer compound annual revenue per year, subscription services. In fact, about 70% of businesses today are now deploying subscription-based businesses raked or considering subscription-based solutions. in at least 300% more profit over the last couple of years 43 44 © 2020 TAASCOM All rights reserved www.taascom.com

26. Who Are Your Stakeholders? Designing the right experience that 1 REsponsible promises optimal rewards, especially to customers According to the Project Management Institute, Stakeholders who are Responsible are those who stakeholders are individuals, groups, or organizations Ensuring communication is clear and have the ability to directly achieve any task, such as that affect or are affected by project decisions, designers, researchers, writers, etc. concise across the whole organization activities, or outcomes. These include: Working towards the fulfillment of 2 shared objectives; and Accountable Maintaining efficiency and security within your business model Accountable stakeholders are those who are tasked Company with the completion of not just tasks, but the entire staff project. They also have approval or veto authorities. Shareholders Often, these are project managers, IT executives, and from CEOs to other higher-level staff. The RACI Model employees 3 One of the most helpful ways to approach Consulted role designation and management is to use the RACI model: Responsible, Accountable, Stakeholders who must be Consulted are those who Consulted, and Informed. Segregating tasks Community Customers possess the knowledge that is required for the task and expectations according to these four progress/delivery. Examples include experts in layers helps in: Customer Success and Support, Sales, Business Intelligence, etc. Managing differing opinions Establishing a comprehensive and 3 Informed effective communication strategy; and Understanding the specific responsibilities of each of these designations, as well as your responsibilities to them, is Avoiding role confusion + mitigating Finally, Informed Stakeholders are those who need to important to: conflict be informed of how tasks are progressing, but their input does not have to be immediately actionable. 45 46 ©2020 TAASCOM All rights reserved www.taascom.com

27. Pricing of the Offer Stakeholder ResponsibilitiesThat Are Integral to Success in the Subscription Economy Pricing is a powerful lever for the subscription economy. If your customers like your price - and the rewards that come with it - they will want to keep paying. According to a report, companies typically spend only 10 hours per year on pricing, and it has adverse consequences for their businesses. For Tosuccessfullytransitiontoandmakea instance: profitoffofthesubscriptioneconomy, Product Management of the Offer prices only once per year“ therearespecificfunctionsthat double revenue stakeholdersmustproperlymanage. Theseareasfollows. Product management is a key pillar of a successful transformation through the subscription economy. Companies that update their pricing at least once Stakeholders can best approach this facet of the process every six months see almost double the Average by: Revenue Per User of those that update their Clearly defining and establishing markers of success, as well as objectives Setting standards and expectations, creating layers MonetizatioN X8 of abstraction, and outlining a system of escalation in case of problems Monetization is as Mitigating risks through user testing and lean influential (at least 8 validation; and times) to business growth as customer Streamlining efficiency in your operations through acquisition separating roles and tasks, asking your developers for their input, and encouraging clear communication within the organization 47 48

28. As such, subscription-based models must know Many businesses typically use these three how to properly leverage pricing to entice, pricing strategies: maintain, and keep customers. There are four main strategies that you can use: Cost-plus pricing: calculating all fixed and variable costs and then adding a percentage margin to set the price Fixed or flat-rate pricing Competitor-based pricing: Using the prices of Single offer, fixed features = fixed price your competitors as your baseline for setting Example : Basecamp yours Value-based pricing: harnessing customer data Tiered pricing that informs on the perceived value of your business offering and using that to set your price Various packages with various features/product combinations at different price points. To choose the right pricing model for your Example : Wordpress subscription-based business, your stakeholders must consider: Per unit /user Pricing scales with the number of users Who your customers are, how they use your offer, what they need from your offer, and for how long Example : Buffer they need your offer How your competition prices their offerings; and Per unit /user Your fixed and variable costs Price points depend on users' consumption of a product or service Example : AmazonWebServices 49 50 ©2020 TAASCOM All rights reserved www.taascom.com

29. Marketing of the Offer Put together rational offers Pitching to your customers' emotions is Marketing your business offer is the main effective, but allowing them to practice their bread-and-butter of your subscription own agency and make a decision that seems business. Approaching this with your rational to them can work better. For stakeholders best follows these tips: example, if you are selling a subscription box, tell them exactly what they are getting when they subscribe to that box, why they should get that box from you and not a competitor, Create value, not just discounts and how that box is going to improve their According to John Warrilow, the author of X10 lives. Give them a free taste A freemium option is a good way to convert 75% "The Automatic Customer: Creating a Subscription Business In Any Industry", leads into paying customers. According to a customers will be more likely to subscribe report, 75% of people surveyed used a to a business if they can get 10x the value freemium model for games, and based on of their payment, and not merely a 10% worldwide gaming app revenue, it works. discount. Additionally, you can offer free trials to onboard customers. 51 52 © 2020 TAASCOM All rights reserved www.taascom.com

30. farmers focus on keeping them your customers.“ Sales HAVE HUNTERS AND FARMERS Selling a subscription is different from just converting a traditional lead: you want to Ideally, you should have "hunters" and "farmers". make sure that you keep benefiting from Hunters focus on getting new customers, while that sale. In other words, your customers should want to stay subscribed to your business offering - and your sales team is very important to making that happen. Fulfillment Incentivization must follow some basic tenets for Streamlining your sales methodologies to best practices, though. These include: successfully attract and retain customers should, A big part of the growth and success of a first, start with segregating your sales teams. subscription-based model rides on the Paying early and paying often, so that your sales Ideally, you should have "hunters" and "farmers". effectiveness of your order fulfillment. In involving team can bring in continual sales, instead of Hunters focus on getting new customers, while getting compensated for mere annuity streams. your stakeholders, this typically gets divided into farmers focus on keeping them your customers. To make full use of this, incentives are a great two major concerns: the design of your fulfillment tool. Tracking the sales contracts, where the value of system, and the components that make it up.

 the deal is computed rather than the single sale count. For instance, if one of your sales To address the first, there are two major ways by stakeholders closed a three-year deal, you will which subscription businesses handle fulfillment. want to reward that more than a salesperson that closed a 6-month deal. IN-HOUSE Also, capitalize off of upselling opportunities. You FULFILLMENT may opt to dedicate this solely to Farmers, or you OUTSOURCE can design your sales funnel to allow Hunters to keep in contact with their customers, too. 53 54

31. There are various ways to optimize billing, if The first is in-house, where they take care of Now, when it comes to the components of your everything that their customers need and they fulfillment system, an effective model ideally you’re switching to the subscription economy. do the actual logistics solutions that will deliver features: First things first, avoid common mistakes. These what their customers paid for.

 include: A good inventory management system The other is to outsource fulfillment to a Ecommerce platform integration Not having a system that allows flexible pricing over third-party logistics company. Often, businesses time to meet market demand and changes A comprehensive picking list; and that benefit most from this type of setup are those that ship out large volumes of actual Sticking to manual processing of important tasks that An unboxing experience design products to customers on a timely basis. If you can yield better results, such as delivering a want to go this way, consider choosing a company user-intuitive signup platform that: Billing Giving generic receipts and invoices, instead of personalizing them to encourage brand loyalty Creates custom branded packaging Billing management is an integral cornerstone of a well-managed subscription business. Billing Not anticipating and addressing possible risks and Has a network of fulfillment centers covers: issues with credit cards; and Offers automated fulfillment Hard-coding their own billing solution Has an in-house inventory management service Who should be billed Offers custom-tailored pricing Specific subscriptions/products that customers are billed for The amount for which they are billed When they are billed Payment collection system Important data gathered for analytics and accounting 55 56

32. Support/Call Center Also, speaking of billing solutions, there are various software If you intend to outsource your support contact providers that do exactly that. They vary from vendor to vendor, center, the ideal partner provider will deliver: but at the core, they: Support solutions are necessary in maintaining your Seamless integration with your business relationship with your customers - especially for model subscription-based models. Streamline the collection of payments through a variety of Speedy deployment of solutions methods Monitoring tools for increased productivity, KPI tracking, etc (Credit cards, debit cards, PayPal, Amazon Payments, wire Quickissue/problemresolution transfers, etc.) Scalability User-friendly systems; and 360-degree customer support Managing and automating specific Personalandeasyinteraction tasks, such as withskilledagents Customer Success Management Checkout (freemium, trials, etc) Subscription components (pricing models, etc) Availabilityofmultiplechannels Billing processes (calculations, discounts, schedule, etc) Customer success management is closely tied forsupport Invoicing to recurring revenue, especially for subscription-based businesses. When your Accounting; and customers are using your business offering in Analytics such a way that it makes their lives better, they will be more willing to keep trusting you and, The key is to choose the right program for your specific business thus, pay you. And one of its most basic tenets operations. Consider these factors: is that you, as the business, should deliver the experience that they desire. Product capabilities; and Service capabilities 57 58 ©2020 TAASCOM All rights reserved www.taascom.com

33. DELIVER THE EXPERIENCE YOUR CUSTOMERS DESIRE 70%“ 1 3 Differentiate between Establish metrics based on satisfaction and success your goals Customer satisfaction is no doubt critical to How do you measure success? This definition making profits, but it is not at all the same as must be clear-cut across the entire customer success. For a real shot at growth, organization, and it should provide the your customers must understand the value foundation upon which you will track that your offerings bring, so much so that they analytical data, tools, and instruments. cannot go without them. There needs to be a clear line between satisfaction and success - and all your business methodologies should be A Zendesk report upholds the importance of streamlined according to the achievement of following this tenet, as they found that more than both. 70% of customers switch brands because of poor service, while 7% of customers make purchasing decisions solely on how they are treated. 2 Align your goals with those of your customers How do you approach customer To meet your customers right where they are, management, as an organization, and by you need to be the solution to their issues or involving key stakeholders in your concerns. This means developing and business? deploying solutions and offerings that will enrich their buyer experience. Listen to what your customers need, and scale your business to continually deliver exactly that. 59 60 ©2020 TAASCOM All rights reserved www.taascom.com

34. Customer Engagement Incentivize loyalty Successfully managing customer engagement can unlock a veritable world of profitability for When you get recurring subscriptions from subscription businesses. Here are some of the customers, make sure you say your thanks best ways to achieve that. by offering them a reward. Freebies are a good way to do this, as are discounts. Always be accessible to your customers x40 Allow feedback Feedback from your customers is among the most powerful tools you can have at your Customers that interact with businesses on disposal; after all, these are the very people social media spend anywhere from 20 to 40 that are already paying you for your times more on them than those who don't. business. Whatever it is that they want to Being readily available across multiple say must find a channel, and you can use this media channels will communicate your information to design, adapt, and reinforce trustworthiness, and will spur on brand your processes. loyalty. 61 62 © 2020 TAASCOM All rights reserved www.taascom.com

35. GUIDEQUESTIONS FOR READERS Profitability/KPI Management 1 Recurring Revenue Rate Measures recurring value generated by renewals, Ready to jumpstart Stakeholder and Finally, do not forget to measure growth subscriptions, and contracted services on a weekly, Responsibilities management for your and success. One of the best things that monthly, quarterly, or annual basis technology has done for businesses is the business?Consider these questions: Sum of all recurring payments in a week / creation of analytical tools that can help month / quarter / year inform strategies, revamp existing systems, and drive business success. Here Who are the different stakeholders 2 Average Revenue Per User are some of the most important Key in your organization? Is there a clear Performance Indicators (KPIs) for division of responsibilities/tasks profitability in the subscription economy: Measures the average revenue from every subscriber of a between these different groups? If service yes, how can role designation be Total revenue divided total number of subscribers better? If not, how can role designation be better? 3 Cost of Goods and Services Sold Is there clear communication across the organization? How is it Measures the total cost of manufacturing and delivering impacting your business, in terms of your products/offerings its goals?Does anything need to Sum of labor + material + service and delivery costs improve or change? 4 What do your customers need? Gross Profitability What do your stakeholders need? Measures the balance between production + labor costs What do you need from your and pricing and service delivery costs stakeholders? Total revenue minus the cost of goods sold 63 64 ©2020TAASCOM All rights reserved www.taascom.com

36. Optimizing customer experience is 19% Customer-obsessed businesses 7x TECHNICAL DEPLOYMENT
 ARCHITECTURE Customer Experience/UX among the most promising can be 7 times more relevant to opportunities for 19% of their customers, 5 times more businesses, as opposed to data likely to be a top provider in their driven individual-focused industry, and 4 times more marketing (16%), and content profitable than the competition. Customer experience has turned into one of the marketing (14%). (Econsultancy, (Forrester, 2016) most powerful levers for business growth. In fact, 2018) according to Gartner, 89% of companies will compete mainly through it, and that is why about 50% of companies will direct their investments 87 % towards designing better experiences for their clients.

 Market research statistics support this, too. According to Accenture, 87% According to Accenture, 87% of organizations of organizations believe that believe that traditional experiences no longer traditional experiences no please customers. Additionally: longer please customers. 65 66 © 2020 TAASCOM All rights reserved www.taascom.com

37. Not all Touchpoints can lead to Interaction, For subscription-based companies, customer 1 Touchpoints experience is even more important. and not all Interactions can lead to Engagement. Your clients want to make sure that they are Touchpoints refer to points of exposure between your enjoying your products or services to keep customers and your product, such as a banner ad, a But every Touchpoint is a possible path to on paying you. targeted social media post, or a billboard. Interaction and, from there, Engagement. Why UX Is Important to Designing Your Subscription-Based Offer 2 In designing for Customer Experience, you INTERACTION need to be clear about your message - from the Touchpoints through to possible Interaction facilitates a two-way communication Engagement. between your brand and your customers. An example of this is when a customer clicks on a call-to-action Subscription-based models are button or otherwise does any of the things that you predicated on the thinking that your “ wish them to do. customers like your business - they In order for customer experience to work, it has to exist ACROSS the organization. want it in their lives and they are willing 3 to pay to keep it. UX is integral to Engagement making that dynamic sustainable. Engagement happens when there is a commitment There are three main points of or an agreement from your customer for more consideration to remember in designing action. This is different from Interaction in that Engagement gives your customer the agency to for Customer Experience. Alex Gilev, HackerNoon follow up on a previous action. For instance, if they clicked on your call-to-action button, Engagement happens if they proceed with the resulting action from the button, such as making a purchase or requesting a quote. 67 68 ©2020 TAASCOM All rights reserved www.taascom.com

38. Best Practices for UX Design How the Subscription-Based Model Is Changing the B2B Sphere Be simple Be easy You want to make your customers want Don’t make it complicated or to pay, and they will be more encouraged unnecessarily exhaustive for customers The subscription economy is not only disrupting retail, it’s to do that if they can see your Subscribe to want to pay you. Requiring lengthy also fast becoming a key cornerstone of B2B marketing. button easily. It should be non-intrusive, information can hurt your conversion Companies can now transition from a transaction-based but also highly visible. Placing this button rate. Make your subscription process as model to one that is subscription-based, and for higher within easy view of your header or pain-free as possible. Case in point: gains. footer is a good idea, as is making sure it Tinder. Users do not need to click on so stays on top even when the user scrolls. many buttons that lead to extensive A good example of this is the Subscribe forms, and they have 5.2 million button by the New York Times. subscribers as of August of this year. Be clear The terms of the subscription should be upfront and easy to read, not hidden in a footnote or indexed in a separate page that opens. Facilitating decisions for your customers is easier when they know exactly what it is that they want to commit to. Spotify does a good job at this, as it gives users everything they need to know when they want to go Premium. 69 70 ©2020 TAASCOM All rights reserved www.taascom.com

39. Reduced Time-to-Market. Switching to an As-a-Service model enables businesses to get to their target audience faster through reshaping, scaling, and expanding offerings. Changing your focus from pitching your products to transforming them into a recurring service frees up so many of your resources, while also gunning for maximum potential returns. GUIDE QUESTIONS FOR READERS Minimized Investment Risk. Ready to start taking Customer Experience seriously for your Changing anything in your business subscription model? You can optimize the process and ensure a model is often costly, but choosing successful design by answering these questions: the right subscription-based model partner provider can ensure optimal results. With the right partner, Who are your customers? businesses can focus on model How is your brand exposed to your customers? strategies, customer value propositions, and profit formulas - What can you do to drive engagement between your while the partner provider takes brand and your customers? care of the technology platform, What do you need to change to facilitate better implementation, and operational conversions? management of the subscription-based model. In the next chapters, we will discuss the specific UX flow for every possible platform for your subscription model: Integration into an Existing Mobile App, a New Mobile App, a Web Portal, or an End-to-End System. 71 72 © 2020 TAASCOM All rights reserved www.taascom.com

40. According to the International Data 53% TECHNICAL DEPLOYMENT
 ARCHITECTURE There has never been a better time than now to capitalize on Subscription-as-a-Service (SaaS). Growth strategy consultancy Manifesto Growth Architect says that among Customer Experience/UX 504 senior executives that they surveyed, most believe that subscription-based models will be a primary component of their revenue vessels in the coming years. However, only Corporation, about 53% of all software 24% are implementing it, and only 7% are Integration Into Existing Mobile App revenue by 2022 will come from profiting from it. 

 subscription-based platforms. So if you’re moving to such a model, how do you make sure that you reap its promised 24% benefits? The integration of subscription models into existing apps is one that has been lauded far and wide across various industries - and it is forecasted to grow even more. According to the International Data Corporation, about 53% of all software revenue by 2022 will come from subscription-based platforms. Similarly, Gartner estimates that all software entrants - and 80% of legacy vendors - will Among 504 senior executives, most incorporate subscriptions into their models. believe that subscription-based models will be a primary component of their revenue vessels in the coming years. However, only 24% are implementing it, and only 7% are profiting from it. 73 74 © 2020 TAASCOM All rights reserved www.taascom.com

41. How to Transition to Incorporating Subscription into Your Mobile App The first thing to think about when switching to a subscription-based model is incorporating what you can into your existing model. If you already have a mobile app, you can simply opt to add a monetization feature through a subscription. There are various industries that can benefit from the incorporation of a recurring payment model. Those that have content-centric applications, for instance, can use subscriptions to enable readers to unlock more and specialized content. Service applications are another great “ vessel, as they can continually roll out updates that improve when switching to a subscription- based model their services and motivate users to pay. In switching to the subscription economy, businesses that have “products” instead of services must consider: Specific transformation methodologies to turn The first thing to think about when them into an As-A-Service provider switching to a subscription-based model is incorporating what you can into your The right partner provider that can ease transformation and ensure successful results existing model. If you already have a mobile app, you can simply opt to add a monetization feature through a subscription. 75 76 © 2020 TAASCOM All rights reserved www.taascom.com

42. How to Optimize the Integration For Positive Results When adding a subscription feature to your mobile app for the first time, it is natural to expect some resistance from your audience - especially if you’re a product-centric business. But there are ways to win them over and preserve your good relationship with them. Here are some of the best of them. GUIDE QUESTIONS FOR READERS Streamline your onboarding and free trial period. Your users need to be onboarded and given a taste of what they will Ready to branch into the subscription economy? Here experience through subscribing to your service before you are some questions to consider: can expect them to want to pay for that service. Set down clear and concise steps in implementing your onboarding and How are you developing your product so that it becomes free trial periods, so that you can ensure great customer a valuable and necessary recurring service for your impressions and experience. customers? Expand your offerings. If you want customers to issue What changes do you need to employ to transform your recurring payments to your business, you should be willing to business model into a service-oriented one? step up your offerings. For instance, if you sell a product that What are the specific goals that you hope to achieve you’d like to transform into a continuous service through a through switching to a subscription-based model? subscription, you may want to develop that product so that it becomes continually valuable to your customers. In the next chapter, we will discuss how best to add a Deliver consistent value, every time. Speaking of things that subscription feature into an entirely new mobile app. are continually valuable, your business must commit to delivering great experiences, every time. 77 78 © 2020 TAASCOM All rights reserved www.taascom.com

43. Transitioning Into A New As-A-Service App TECHNICAL DEPLOYMENT
 ARCHITECTURE Switching to the subscription-based model is Customer Experience/UX a great way to ensure recurring profit, encourage the continued patronage of your customers, and further establish your brand. And to fully capitalize off of the subscription New Mobile App economy, it helps to have: Specific goals that you hope to achieve through switching to a When Apple and Google decided to cut back on subscription-based model their platform fees for in-app subscriptions, Comprehensive product monetization in applications rose. The subscription In 2018 alone, engagement with 32% development, which involves economy gained further foothold in the way the building additional products that world does business - and today, it is set to only complement existing ones, testing grow more. In 2018 alone, engagement with the prototypes, scaling them, and subscription apps rose by 32 percent compared to extending the value that they the previous year. provide to your clients Commitment to everlasting quality subscription apps rose by 32 percent to keep customers coming back compared to the previous year. 79 80

44. GUIDE QUESTIONS FOR READERS Taking it to the next step and designing your new app with a subscription? Consider these questions: What are the changes that need to be implemented, adopted, and prototyped to turn your product into a service? How do you ensure lasting value for customers to expect recurring payments as a reward? How are you scaling your offerings so that they stay relevant within the next five years? How is your current IT environment equipped to handle customer queries, maintenance requests, etc? 81 82 © 2020 TAASCOM All rights reserved www.taascom.com

45. TECHNICAL DEPLOYMENT
 ARCHITECTURE 80% As early as 2014, The Economist said that 80% of consumers want a new Customer Experience/UX consumption model Web Portal IFOP said that 50% of people in 50% France are looking beyond traditional ownership Today’s consumers no longer want the same traditional business offerings - it’s no longer about 80% paying for goods, it’s about paying for value. The IDG Research Services says that 80% of German companies have dabbled in subscription economy has arrived with full force, subscription business models. and the whole world is paying attention. 420B In 2015, Credit Suisse said that the US spent $420B on subscriptions. 83 84

46. Today, the Subscription Economy Index from 50% Best Design Practices for Subscription-Based Web Portals How to Optimize A Subscription Feature for Your Web Portal Designing great UX for web portals follows Use your content to promote typically the same principles as designing for membership/subscription or create a lead mobile applications. Subscription-based web generation funnel, such as issuing special or paywalled reports, granting specific access to portals typically contain these elements: Zuora said that subscription-based models high-quality articles, etc. grew by 350%. Additionally, IDC predicts that by 2020, 50% of businesses will Signup/Member Registration forms transition into offering more digitally Offer a free trial, and make your Call-to-Action Payment Processing gateway; and enhanced products, services, and clearly visible and simple. Subscription Packages or Renewal options experiences. Highlight promos, discounts, and value that In incorporating these, it is best to remember to your customers will want to cash in on. design the website according to optimal: Give users a guarantee or a moneyback option, if it is possible. Convenience. Enticing customers to become loyal and paying customers is easier if they don’t have to Make use of interactive content types such as submit to a laborious process that requires too quizzes to leverage conversion. much time. Stick to keeping things simple and easy, with easy-to-understand language. Functionality. Switching to a subscription-based business model should offer maximum rewards for your paying customers. A well-maintained web portal is key to ensuring recurring returns. 85 86

47. GUIDE QUESTIONS FOR READERS To harness the full power of subscription-based web portals, consider these questions: How are you leveraging the current content that you have to encourage customers to become members or subscribers? How is your current website equipped to handle subscriptions? Are there changes that need to be done? Do you need to upgrade to ensure continuous quality service, especially in handling customer concerns or conducting maintenance activities? 87 88 © 2020 TAASCOM All rights reserved www.taascom.com

48. To optimize the process, melding all these elements together and tying them with your specific TECHNICAL DEPLOYMENT
 ARCHITECTURE business approach is best. When you transition into an As-A-Service company, your business value should be clearly communicated to your customers - from end to end. There are five specific stages that are integral to this system, and they are: Customer Experience/UX 1 Awareness End-to-End System 2 Consideration 3 Leveraging a subscription-based model for your DECISION business instead of focusing on traditional offerings is not only ideal in these changing digital times, it is 4 Usage also necessary to your growth. In the previous chapters, we have discussed how to transition from End-to-End System: Implementation and Maintenance 5 a goods-based model to a subscription-based one, Renewals/Subscriptions and how you can incorporate it into an existing mobile app, a new application, or a web portal - all Implementing and maintaining an while keeping Customer Experience central to your end-to-end Customer Experience system transformation. for a subscription-based model accommodates more opportunities for positive returns when it is aimed at a few central components of an effective model. 89 90 © 2020 TAASCOM All rights reserved www.taascom.com

49. Pricing Customer Acquisition Across Various Channels In addition, your accounting should look out for revenue recognition metrics, which include Pricing is important to three major growth strategies, especially recurring profit margin, retention rate, and for subscription-based models: customer acquisition, customer growth efficiency index. These will help inform A seamless user experience is critical to the subscription retention, and customer churn management. the financial health of your business, as well as economy, and one major pillar of that ideal UX is an alert you to changes that may be necessary to integrated approach to attracting new customers, from There are several ways to approach pricing; it can be a drive better returns. mobile platforms to assisted sales. B2B companies should static monthly fee, or a one-time one-price-fits-all especially focus on: structure. Both have differing advantages and disadvantages. To strike the best balance for your Creating simple and automated workflows across business, it helps to consider: multiple channels Defining policies for term lengths and multi-channel support, particularly for mobile phones Expected functionality by customers Accurate and Intuitive Billing and Metric-Based Accounting Discounts or incentives for bulk purchases Getting your billing right is necessary in successfully not turning customers away and for subscription businesses, Usage levels there are specifics that must be considered. Service offers, as opposed to traditional product purchases, need to contend with various usage bills, billing dates, prorated accounts, new customers, and others. Invest in Loyalty rewards a billing system that can integrate many data points into one platform and issue clear and accurate bills. 91 92 © 2020 TAASCOM All rights reserved www.taascom.com

50. Strong Customer Relationships Subscription-based businesses make most of their money from consistently paying customers. According to Zuora, most large enterprises make only 15 to 25% of their profit from brand new customers - the bigger share of the pie lies in current members or subscribers. Inculcate deep and satisfying relationships with GUIDE QUESTIONS FOR READERS your client base to drive compound growth. 25% To establish and maintain an efficient end-to-end subscription-based system, consider these questions: How comprehensive are your resources to accommodate the demands of an end-to-end system? What needs to be upgraded/improved on to facilitate better functionality and customer experience for your target market? According to Zuora, most large enterprises What are the pain points in your business make only 15 to 25% of their profit from transformation, and how can they be remedied? brand new customers - the bigger share of the pie lies in current members or subscribers. 93 94 © 2020 TAASCOM All rights reserved www.taascom.com