Italian Food & Beverage

What role does the subscription economy play?

At the same time, more and more companies are looking for new business solutions to diversify their sales and keep up with today’s market.

The global pandemic has accelerated the economic processes according to which there is a shift from the product economy to the service economy, characterised by subscription-based business models aimed at creating lasting relationships between customers and companies.

What was initially a “trend” is now the model par excellence chosen not only by the giants of the world economy such as Netflix, Amazon and Spotify but also by small and medium-sized companies in all sectors.

It is worth paying attention to the huge increase in popularity it has achieved in recent years.

According to Zuora, Subscription Impact Report: Covid edition, 22.5% of companies experienced accelerated subscriptions rates.

Recent research by Zuora and Deloitte has revealed that the Food & Beverage segment is the one where consumers are most likely to subscribe to subscription services.

In particular, on-line sales in the coffee sector experienced unprecedented growth in 2020.

Igor Nuzzi, Lavazza Group Italy & Switzerland regional director informed Sole 24 ore of +178% growth over 2019.

If you’re wondering why a coffee roaster should consider a subscription economy model, think about how frequent coffee consumption is for each of us.

However, the benefits of subscription models go far beyond stabilising and increasing income streams for businesses.

Companies build long-term relationships with customers by offering flexibility, support, and closer relationships with their customers. And it is precisely the latter who benefit most, such as convenience, customisation options and often lower costs.

Subscription models also create huge amounts of data, which can be critical to keep up with customer and market changes

Companies need platforms that manage recurring revenues, billing systems, and go-to-market strategies to operate in this scenario.

Zuora is the only technology solution provider that offers complete Order-to-Revenue capabilities and takes into account your customers’ marketing indicators, profitability goals and behavioural data.

Perfectly integrated with Salesforce, it will allow you to access Big Data to offer increasingly important relational marketing strategies.