Subscription business model: Difference between revisions

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Additional benefits include a higher average [[customer lifetime value]] (ACLV) than that of nonrecurring business models, greater customer inertia and a more committed customer base as it transitions from purchase to opt-out decisions, and more potential for upselling and cross-selling other products or services.<ref>{{Citation | title = Subbly.co: Best Practices for Online Business Models | url = http://www.subbly.co/blog/10-best-practices-for-online-subscription-business-models/ | access-date = 9 July 2014 | archive-date = 24 August 2017 | archive-url = https://web.archive.org/web/20170824181102/http://www.subbly.co/blog/10-best-practices-for-online-subscription-business-models/ | url-status = live }}</ref>
 
Some software companies such as [[Adobe (company)|Adobe]] and [[Autodesk]] have moved from a perpetual licensing model to a subscription model, known as "[[software as a service]]". This move has significant implications for sales and customer support organizations. Over time, the need to close large deals decreases, resulting in lower sales costs. However, the size of the customer support organization increases so that the paying customers stay happy.<ref>{{Citation | title = Software Pricing Trends | url = https://www.pwc.com/us/en/technology-innovation-center/assets/softwarepricing_x.pdf | access-date = 14 August 2016 | archive-date = 27 August 2016 | archive-url = https://web.archive.org/web/20160827131306/https://www.pwc.com/us/en/technology-innovation-center/assets/softwarepricing_x.pdf | url-status = livflive }}</ref>
 
===Customers===