Selling products is a thing of the past as consumers increasingly opt for subscription services.
People want services over products. "This is clearly the business model of the future," said Zuora CEO Tien Tzuo.
The "subscription economy," a term coined by Tzuo, refers to businesses that charge for services rather than physical products. This business model emphasizes long-term relationships with customers. Since an unhappy customer can simply unsubscribe at any point, companies must invest in real customer service and listen to client feedback. If they do it right, they can profit from recurring revenue and a loyal customer base.