The Subscription Economy Featuring Guest Tien Tzuo

Shep Hyken sat down with Tien Tzuo to talk about the subscription model and how companies like Salesforce, Uber, and Caterpiller are helping to make it the future of business.  Top Takeaways:The subscription economy is a phrase coined to describe the idea that people don’t have to buy products anymore to meet their everyday needs or to get from Point A to Point B. It allows companies to switch from selling products to selling a service that consumers can use while transforming an industry for the better.The subscription model is a win-win for customers and businesses. For businesses: It scales better, is easier to run, and guarantees recurring revenue. For the customer, it’s less expensive and more convenient.To jump into the subscription economy, start with a view of what your customers are doing with you and track all of the usage and interactions. This allows you to understand how you can broaden your footprint with the customer and create a more meaningful relationship.Anybody can take your product, reverse engineer it, and offer a clone to their customers. If your competitive advantage isn’t based on your product but instead your knowledge of what your customers are doing and the relationships you have with them, that is a much stronger position to be in.About: Tien Tzuo is the CEO and founder of Zuora. Previously, he was the 11th employee of Salesforce working as the Chief Strategy Officer and CMO for eight years. He’s also the bestselling author of Subscribe: Why the Subscription Model Will Be Your Company’s Future and What to do About It. Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and your host of Amazing Business Radio. Learn more about your ad choices. Visit megaphone.fm/adchoices