The subscription business model is a business model where a customer pays a subscription price to have access to a product or service. Subscriptions are typically paid by units, e.g. by user, server, .. The Lean-Case Revenue Stream Subscription bundles a Subscription specific Revenue Model, the Revenue Forecast Model and revenue related cost models.
Check out the following example to understand the basics of a Subscription Revenue Model (see figure below):
- a Business sells subscriptions of an accounting service to 2 different customer types: a Startup Plan and an Enterprise Plan
- For a Startup Plan, a customer typically pays a subscription of $100 on a monthly basis
- For an Enterprise Plan, a customer typically pays a subscription of $300 on a monthly basis
- Small Customer make up 70% and large customers make up 30% of all new customers.
- the Business adds 1 new Sales Team per Month between Jan 18 und Jun 18
- each Sales Team acquires 10 new customers per month (for the above example: 7 startup plans and 3 enterprise plans).
Follow the links below to dive into more detail on how to create a Subscription Revenue Stream:
- Add a Subscription Revenue Stream
- Edit inputs with varying values using flexible editing with Data Groups
- Define the Customer Mix by adding different Customer Types buying your services
- Define how many new customers you acquire by linking a Forecast Model
- Add Revenue Related Cost linked to getting, keeping and growing customers, in particular