Publications
Publications
  • April 18, 2023
  • Article
  • Harvard Business Review (website)

The Rebirth of Software as a Service

By: Frank V. Cespedes and Jacco van der Kooij
  • Format:Electronic
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Abstract

Traditional sales models focus on customer acquisition and the “funnel” or “pipeline” metrics that dominate talk about sales. But this approach falls short when applied to a recurring revenue business, where the customer life cycle looks more like a bowtie, not a funnel: In a subscription model, most revenue takes place outside the marketing funnel. This article discusses why the subscription model grew, why it crashed in the tech sector, and the lessons for growth via that approach for other businesses where the “Internet of Things” is making subscription services a major opportunity for firms in sectors far removed from software.

Keywords

Customers; Sales; Technology Industry

Citation

Cespedes, Frank V., and Jacco van der Kooij. "The Rebirth of Software as a Service." Harvard Business Review (website) (April 18, 2023).

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