Book Online or Call 1-855-SAUSALITO

Sign In  |  Register  |  About Sausalito  |  Contact Us

Sausalito, CA
September 01, 2020 1:41pm
7-Day Forecast | Traffic
  • Search Hotels in Sausalito

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

New Pricing and Revenue Models Accelerating Demand for Subscription Management Software

Applications that integrate and scale will enable enterprises to meet customer expectations while ensuring financial integrity and compliance, new research finds

Subscription pricing must go beyond traditional flat-fee models to include consumption-based pricing supported by technology for subscription-based businesses to continue growing, a new research report from leading global technology research and advisory firm Information Services Group (ISG) (Nasdaq: III) says.

The ISG Subscription Management Buyers Guides, produced by ISG Software Research (formerly Ventana Research), note effective subscription management systems must support a variety of business models and use cases, either with functional capabilities of their own or with the ability to integrate with existing systems or third-party providers. The report states that by 2026, increased adoption of the subscription business model will lead to more complex pricing, rating and billing, and if not successfully addressed with software solutions, will diminish the customer experience and restrict growth.

“Though subscription models are no longer new, the rate at which more traditional subscription sales channels are adopting new pricing and monetization methods continues to grow,” says Stephen Hurrell, director of Office of Revenue Research, ISG Software Research. “As a complement to one-time sales, the adoption of subscriptions and, increasingly, usage-based models, is putting a strain on existing systems.”

Rather than rip and replace existing applications, enterprises are looking for ways to leverage their existing ERP and CRM systems with applications that enable them to add and manage new sources of revenue without interrupting or complicating the customer experience, Hurrell noted.

Overall, the research finds software providers recognize that non-digitally native companies want to supplement their core one-time sales business with additional pricing and revenue models, such as subscription and usage, that offer complementary products and services.

Software providers in the subscription management market now support better subscriber experiences that require advanced analytic and predictive capabilities utilizing artificial intelligence techniques such as machine learning. The report notes most software providers have been slow to roll out value-added offerings that can recommend additional monetization opportunities, such as pricing optimization or plan and bundle options, but some are leading the way with new digital innovations.

The report highlights one technology area many providers are actively investigating: how predictive and generative AI can enhance internal operations to support a better customer experience. Enterprises need applications that support not just early forays into new revenue models but also scale with an enterprise’s ambitions, the report notes. Such scalable applications will enable enterprises to continually meet customer expectations while ensuring financial integrity and compliance and sustained profitable growth.

For its 2024 Subscription Management Buyers Guides, ISG evaluated software providers across four platform categories – Subscription Management, Subscription Management Platforms, B2B Subscription Management and B2C Subscription Management – and produced a separate Buyers Guide for each. A total of 24 providers were assessed: Aria Systems, BillingPlatform, Certinia, Chargebee, Cleverbridge, Conga, FastSpring, Gotransverse, Kibo, LogiSense, Maxio, OneBill, Oracle, Ordergroove, Paddle, PayPro Global, Recurly, Salesforce, SOFTRAX, sticky.io, Stripe, VeriFone, Zoho and Zuora.

ISG Software Research designates the top three software providers as Leaders in each category. For the 2024 study, the leading providers in ranked order are:

Subscription Management: Zuora, Oracle and Salesforce

Subscription Management Platforms: Zuora, Oracle and BillingPlatform

B2B Subscription Management: Zuora, BillingPlatform and Oracle

B2C Subscription Management: Zuora, Oracle and Salesforce

“The need to engage subscribers with experiences that motivate the purchase of subscriptions is increasing demand for purpose-built software that can interoperate with consumers across commerce channels,” said Mark Smith, partner of Software Research at ISG.

The ISG Subscription Management Buyers Guides are the distillation of more than a year of market and product research efforts. The research is not sponsored nor influenced by software providers and is conducted solely to help enterprises optimize their business and IT software investments.

Visit this webpage to learn more about the ISG Subscription Management Buyers Guides and read executive summaries of each of the four reports. The complete reports, including provider rankings across seven product and customer experience dimensions and detailed research findings on each provider, are available by contacting ISG Software Research.

About ISG Software Research

ISG Software Research, previously Ventana Research, provides authoritative market research and coverage of the business and IT software industry. It distributes research and insights daily through its user community, and provides a portfolio of consulting, advisory, research and education services for enterprises, software and service providers, and investment firms. Its on-demand service provides structured education and advisory support through subject-matter experts. ISG Buyers Guides support the RFI/RFP process and help enterprises evaluate and select software providers through tailored assessment services and the ISG Software Research Value Index methodology. Visit www.ventanaresearch.com for more information and to sign up for free community membership.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photos copyright by Jay Graham Photographer
Copyright © 2010-2020 Sausalito.com & California Media Partners, LLC. All rights reserved.