B2B Manufacturing and the Future of the Membership Economy
Robbie Kellman Baxter shares her latest article with expert insights on the subscription-based business model. This week, she discusses the disruption to the manufacturing industry and three mindset shifts leaders will need to make during the coming year.
Whether you’re a B2B manufacturer or a supplier to the industry, it’s time to rethink your entire relationship with your customers.
Companies like Dollar Shave Club and Birch Box let consumers enjoy cost savings, convenience and the fun discovery. And Peloton offers video subscriptions so purchasers of their indoor cycling bikes can get more out of their fitness regimen.
Now, B2B manufacturing and the companies who supply the manufacturers are starting to get on the act. The implications are huge. Think of the potential if manufacturers were ‘members’ who could subscribe to a factory line instead of owning it outright. I’m talking about the makers of heavy equipment like jet engines, cranes, combines and, of course, automobiles, but also entrepreneurs designing new electronics products.
Of course, subscription isn’t a totally new concept for the heavy equipment world. Many businesses already prefer to “subscribe” to cranes or trucks rather than bearing the burdens and responsibilities of a major capital expense. But what if you’re a supplier to a manufacturer, or a manufacturer whose primary “customer” is the distributor, not the end-user? If you want to see what the future holds, just look at the “Software as Service” (SaaS) revolution.
Key points include:
- Starting with the service, not the machine
- Customer focused strategies
- How to build a Forever Transaction
Read the full article, The Subscription Model is Set to Disrupt Manufacturing. Here are 3 Mindset Shifts Leaders Will Need to Make, on LinkedIn.