By: Jeff Wissink, Navint Managing Director

The Subscription Business Paradox
If you’re an operator of a subscription-based revenue business, you know intuitively that your business requires a tight interconnection amongst all internal functions to operate efficiently. At Navint, we call this “frictionless” operations, and it can be surprisingly elusive with subscription-based revenue businesses in particular.

This difficultly in achieving “frictionless” operations is a direct result of the nature of subscription businesses themselves. Selling subscriptions is inherently different than selling widgets, insofar as subscriptions typically offer you usage of a product as opposed to the product itself. Selling rights to a product allows for a dizzying and ever-changing number of ways to bundle and price, a complexity that must be managed all the way through your organization, through customer support and finance.

This is the subscription businesses paradox; these dynamic monetization methods are both critical to a subscription-based revenue business’ growth and, if not designed and managed properly, drive incredible complexity and cost into an organization.

Worse yet, traditional tools for process design are inadequate in this world, as the linear approach to process design has difficulty capturing the cross-functional nuance of subscription-based businesses. This concept is the basis of our most recent white paper – “The Death of Quote-to-Cash (Q2C).” Subscription-based businesses require a new approach and modern set of tools for business optimization, and Navint’s 9-service block methodology has proven to be highly effective in this regard.

More to come in future weeks on Navint’s Service Block methodology.

To learn more about Navint’s Subscription & Monetization service offerings, please contact Jeff Wissink at jwissink@navint.com or visit us our Subscription Services¬†section.