Rule 1: An example
Microsoft used to sell Microsoft Office ‘95 as a set of disks that you owned and could use forever. You could choose to buy a new version every 2-3 years, or simply continue to use the old one. Today, Microsoft sells its Office software as a service. You buy a monthly subscription, granting you access to the latest version, with no commitment required.
Bear in mind: when Microsoft sold you the disk, it recovered its investment and profit at that instant. Today, the investment and approach differs, as does the time in which profit is recouped. To solidify their earnings, companies like Microsoft have a vested interest in maximizing their customers’ experience, so that they continue to buy for the long-term.
Rule 1: Not just for software
While this concept is intuitive for products like software, it can also be applied to other offerings. Take the car rental industry for example. While in the past, those wishing to use a car for just a few days were required to enter a long-term rental or purchase contract, today, a car can be rented from a vehicle sharing service with the click of a button. Or, you can forgo the driving experience altogether, in favor of door-to-door ride services like Uber or Lyft.
Another example is the music consumption industry. Remember when people ran out to buy their favorite artist’s new album? Today, services like Spotify enable you to add any song you want to any playlist for a small monthly fee. Don’t like the song? Get rid of it. Don’t like Spotify? You can easily transfer your lists to Apple Music or Pandora.
The future is access – customers like knowing that they can opt out anytime they want. As a sales agent, it’s your responsibility to ensure that their experience is so great, they can’t help but become lifelong family members.