Usership Vs Ownership

Usership Vs Ownership—How Is It Changing the SaaS Market

According to OECD, the world will probably face a recession in the coming year.

Reuters also reports that the energy crisis and inflation are going to push big economies to recession.

Recession in the coming years has become a hot topic in the corporate sector. So, what needs to be done? SaaS businesses need to prepare now so that they can survive.

Team SubscriptionFlow is here to help SaaS businesses plan today to fight the challenges in the coming days. In the past, the trend of focusing on the usability of the products started establishing, and the episode of Covid 19 gave a boost to this trend and adoption of usage-based billing for SaaS. So, here is the tip of the day for SaaS businesses,

Leverage the trend of usership rather than ownership because product usability has become the preference of the customers, and it is here to stay.

Also Read: 6 Reasons Why you Need to Invest in Usage-based Subscription Plans

Usage Cost over Product Ownership

As it has been mentioned that experts are predicting a recession in the near future, SaaS subscription businesses need to prepare now. When the recession hit the market, it brings an overall decline in the economy at microeconomic and macroeconomic levels. You will need to offer your SaaS product at the most affordable rates, and usership is the penultimate solution to do that. You will need to shift from one-time charges to usage-based recurring billing so as to create a win-win situation for both customers and retailers.

Many businesses in the market (even though they are not SaaS) already realized that now is the best time to focus on the usage of the product rather than ownership because recessions directly hit the ability to own a product, and they hit it hard. People are worried about the basic needs of life in days of recession let alone the luxuries. So, we are going to share usership strategies of some luxury brands to motivate you to go for usership than ownership.

Also Read: One Time vs Recurring Payments: What Works Best for Business?

Usership Strategy of Porsche

A few years back the only billing model for the automobile industry was considered to be a one-time purchase. People used to prefer the ownership of cars. However, in the recent past, things have changed. Even luxurious brands of automobiles and cars offer subscriptions. They identify the usability of their cars and offer subscription packages accordingly. Porsche is offering the following subscription packages;

  • Single vehicle subscriptions
  • Multiple vehicle subscriptions

You see, it is not just a strategy to diversify the revenue but also a preparation for the coming days to retain the revenue. In these subscription plans, Porsche not only provides customers with cars but also roadside assistance and maintenance etc. Also, they have launched their Porsche Drive Application to book rides.

Many other brands including Volvo, Audi, and Lexus are also offering similar subscription plans. All these brands of vehicles are getting ready to survive the economic ups and downs in the coming days.

Netflix OTT Platform

You think Netflix is an entertainment platform, but it is an evolution in the SaaS industry. Movies, TV series and entertainment show that people used to purchase in the form of CDs or DVDs can now be enjoyed on one platform by paying an affordable monthly price. Everything is available online if you have an internet connection. Today, no one wants to own a movie or a favourite show in the form of a CD or a DVD. People just watch the movie once or twice, and then move towards the next show.

OTT platforms just identified the recurring need for entertainment, and they monetized it considering the affordability of a diverse customer base. In case of recession, OTT platforms will probably need to adjust their pricing plans, but the business is not going to shatter like a house of cards.

Usership & Uber Eat

Food is the basic need of people, and applications like Uber Eat offer food deliveries. Today, they have moved a mile ahead. They offered their customers subscriptions for food delivery. Why? Because people need food three times a day. Offering such subscriptions offer an advantage to both sides. Not only the subscriptions but Uber Eat also offers discounts to its customers. In the US and Canada, sometimes the user needs to pay $0 for food delivery because of such subscription plans and discounts.

Companies, restaurants, bakeries etc that used to provide people with staple food products are formally shifting to the SaaS business market. They have found their entry point in the SaaS market and their path to success as well.

Customer Experience—A Key to Success of SaaS Business

Now that we understand experts in the world are predicting the recession and businesses are already planning for the unpredictable future, you need to understand the cornerstone of the SaaS subscription business market which is customer experience. People are preferring usership because of two reasons. First, is the cost and affordability of the SaaS platform and the second is the customer experience. The user experience is crucial to turn one-time purchasers into loyal subscribers.

Also Read: 7 Secret Ingredients to Take Over the Market and Chase Stellar SaaS Customer Experience the Right Way

Though we are all entering into an era of difficult times, let’s prepare for it together. For your SaaS business, onboard SubscriptionFlow. Our platform will help you offer end customers maximum usability of your SaaS product or services. Also, here, you can implement SaaS usage-based billing or any other billing model of your choice.