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MANAGEMENT


Seven Vital Changes for Sales Teams with Subscription Models


JIM MARTINDALE


The current demand for subscription models includes car companies, healthcare providers, manufacturers, software companies, and more – and the demand is growing. This switch to subscription sales is both a blessing and burden for sales teams, and changes the ways sales teams work with customers and with the rest of the company.


Organizations need to understand how these changes will affect the sales team and the business so they can prepare for growth and the increasing operational complexity accompanying that growth. Here are seven of the ma- jor changes likely to impact the sales team in a subscription model.


1. CLIENT ACQUISITION WILL CHANGE Flexible selling options – coupled with a low level of customer commit-


ment upfront and a low cost of entry – make selling core products or services easier with a subscription model. But long-term potential is only as good as the company’s ability to serve, deliver, and account for the revenues. This requires rethinking and rein-


venting everything from packaging, pricing, and portfolio to digital plat- forms and front- and back-office sys- tems and adapting them to subscrip- tion sales. The transformation process is complex, and companies often go


14 | JULY/AUGUST 2021 SELLING POWER © 2021 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION.


about it the wrong way – leading to customer churn or requiring work- arounds that take enormous staff time.


2. RETAINING CUSTOMERS AND GROWING REVENUES BE- COMES MORE COMPLEX In subscription sales, customer expec- tations have changed how businesses retain customers and grow revenues. Subscription-based contracts are fluid. Customers expect to be able to make on-the-fly upgrades, add-ons, and swaps via multiple channels – including Web and mobile apps. They demand variety and flexibility, as well as the ability to stop, start, or change service at any time.


A company moving to a subscription model must be prepared for all the systems used to sell and deliver prod- ucts in order to meet this demand.


3. PRODUCT PRICING AND PACKAGING STRATEGY IS PARAMOUNT


The right price for a product is still the absolute maximum a customer is willing to pay. In a recurring revenue


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