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
The ISG Subscription Management Buyers Guides, produced by
“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
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,
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
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
About
About ISG
ISG (
View source version on businesswire.com: https://www.businesswire.com/news/home/20240626410348/en/
+1 203 517 3119
will.thoretz@isg-one.com
+1 978-518-4520
isg@matternow.com
Source: