“By 2015, more than 40% of companies selling media & digital products, such as software, services and content, will rely entirely on software as a service (SaaS) model to manage their billing, renewal and customer loyalty requirements.” – Gartner.
Businesses in every industry are witnessing a continuous shift in the consumer behavior from an explicit product set to an “on-demand” mode of service delivery. The reason is indisputably the unstoppable force of digitization, which brought with itself the need for a customer oriented market. From pay-per-product, businesses are shifting towards pay-per-use model of business, commonly known as the subscription business model.
What people actually want is a quality product or a service that is customized per their needs but without them having to bend over backwards to avail them. Hence, the business strategies have moved from traditional product based model to new subscription-based services.