
Can Automakers Learn to Love the Subscription Model?
Automakers must steer carefully with subscription models to avoid the potholes of the past.
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Starting or scaling a subscription business requires rethinking of business strategy, organization culture, processes, product, compensation and people all driven by a strong foundation of data management and insights.
LatentView partners with leading subscription companies helping them drive tangible outcomes through data driven insights along the customer journey. As an end-to-end solution provider our Consulting Services, Data Engineering, Data Science and Analytics capabilities deliver holistic and impactful solutions to our partners.
The LatentView Subscription Value Proposition Framework is designed to place where the multitude of subscription categories sit according to the value they offer consumers amidst the broader array of choices. While individual brands within categories may have a different placement across quadrants, the category largely sits in a particular quadrant. More importantly, the framework provides both short-term and long-term measures for what companies need to do to strengthen their subscription service offers.
Convenience You Can’t Live Without
B2C Saas Products Replenishment BoxesThe Best With No Regrets
B2B Saas products Luxury Rental/Car Subscription Video Gaming SubscriptionBest Value Bar None
OTT-SVOD/vMVPD Collaboration/ Communication SaasYour Way All The Way
Retail Subscription Meal Plans & Beauty BoxesThe subscription business landscape can be envisioned as a rectangle divided into four quadrants. Different subscription categories fall somewhere among these quadrants based on two factors aligned with the vertical and horizontal axes: “barrier to switch” (vertical axis) and “involvement” (horizontal axis), respectively.
Focus on habit forming (usage)
Longer term focus on offering expansion, entering new markets. Watch out for substitutes or new entrants
Reduce post buying dissonance
Longer term focus on product innovation and growth through acquisitions
Focus on value for money
Longer term focus on owning the value chain or broadening the offerings. Watch out for new entrants
Focus on end-to-end customer experience
Longer term focus on both vertical and horizontal integration. Watch out for new entrants
Barrier to switch
Involvement
The subscription business landscape can be envisioned as a rectangle divided into four quadrants. Different subscription categories fall somewhere among these quadrants based on two factors aligned with the vertical and horizontal axes: “barrier to switch” (vertical axis) and “involvement” (horizontal axis), respectively.
B2C Saas Products
Replenishment Boxes
Focus on habit forming (usage)
Longer term focus on offering expansion, entering new markets. Watch out for substitutes or new entrants
B2B Saas products
Luxury Rental/Car Subscription
Video Gaming Subscription
Reduce post buying dissonance
Longer term focus on product innovation and growth through acquisitions
Replenishment Boxes
OTT-SVOD/vMVPD
Collaboration/ Communication Saas
Focus on value for money
Longer term focus on owning the value chain or broadening the offerings. Watch out for new entrants
Video Gaming Subscription
Retail Subscription
Meal Plans & Beauty Boxes
Focus on end-to-end customer experience
Longer term focus on both vertical and horizontal integration. Watch out for new entrants
Automakers must steer carefully with subscription models to avoid the potholes of the past.
Those looking for lessons in delivering value have much to learn from the undisputed leader of video streaming: Netflix.
The typical American pet owner spends about $111 each month to keep their pets fed, healthy, and happy.
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