PHOTO:
Jonathan Hoxmark
Companies across all industries are navigating fundamental changes to their business models. There is perhaps no better example of this than in the high-tech and software sector, which continues to transform from traditional on-premises product licenses to a cloud-based subscription service model.
This shift is beneficial for both customers and vendors. For enterprise customers, a subscription model allows for faster response to changing conditions and needs, reduces internal support requirements and lowers up front capital investment. For high-tech and software companies, it creates a more stable revenue stream and, if managed well, with low churn rates, unlocks revenue growth from existing customers â as opposed to relying primarily on new customer acquisition. Research byPacific Crest Securities found that it is nine times cheaper for software-as-a-service (SaaS) providers to retain existing customers and four times cheaper to upsell existing cust