Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
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
ShareBar

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).
  • Register to Read

About The Author

Frank V. Cespedes

Entrepreneurial Management
→More Publications

More from the Authors

    • August 2023
    • Faculty Research

    Aphro Beverages

    By: Frank V. Cespedes
    • July 2023
    • Faculty Research

    Belden and Digital Transformation: From Product Sales to Solutions Sales

    By: Frank V. Cespedes
    • May 3, 2023
    • TrainingIndustry.com

    What Top-Performing Sales Managers Do Differently

    By: Mike Schultz and Frank V. Cespedes
More from the Authors
  • Aphro Beverages By: Frank V. Cespedes
  • Belden and Digital Transformation: From Product Sales to Solutions Sales By: Frank V. Cespedes
  • What Top-Performing Sales Managers Do Differently By: Mike Schultz and Frank V. Cespedes
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College