Mark, Another example of bringing leading-edge thinking into the B2B world. Cheers to you!
I thought of an instance of innovation v incumbency as a supplier of a maintenance product. The innovation would be to implement a subscription service directly to customers: For a fixed amount their usual monthly consumption would be shipped to them directly. Volume and frequency could be varied on line.
But, what is the alternative? Buying from a distributor of an array of maintenance products. That distributor probably has history (data and trust) on maybe twenty products this one customer uses at various locations.
Is it easier for that customer (1) to have a standing order and relationship with a regular supplier, or (2) to manage a subscription for one product? It comes down to whether that product is unique and worth it. It would be unique if not available in usual distribution channels, placing an additional inefficiency on a "unique" product.
Mark, Another example of bringing leading-edge thinking into the B2B world. Cheers to you!
I thought of an instance of innovation v incumbency as a supplier of a maintenance product. The innovation would be to implement a subscription service directly to customers: For a fixed amount their usual monthly consumption would be shipped to them directly. Volume and frequency could be varied on line.
But, what is the alternative? Buying from a distributor of an array of maintenance products. That distributor probably has history (data and trust) on maybe twenty products this one customer uses at various locations.
Is it easier for that customer (1) to have a standing order and relationship with a regular supplier, or (2) to manage a subscription for one product? It comes down to whether that product is unique and worth it. It would be unique if not available in usual distribution channels, placing an additional inefficiency on a "unique" product.
Hi Russ,
Great ideas and great questions. Do you know if a successful execution of a subscription model for commercial products? I’m looking for one!
Mark