Industry News Desk
Aria Systems: Recurring Revenue Market Disruptions to Continue in 2014
More companies are adopting recurring revenue models because of their flexibility and convenience for customers
By: Elizabeth White
Feb. 13, 2014 07:00 AM
The trend of companies adopting recurring revenue surged in 2013, with brand names ranging from Adobe and Amazon to Target and Toyota using new billing and pricing models to grow sales and deepen customer loyalty. This surge will continue this year as more companies adopt recurring revenue models because of their flexibility and convenience for customers. Today, recurring revenue expert Aria Systems issued a projection on the industries poised for further disruption via recurring revenue in 2014 and beyond.
"Businesses large and small, across many sectors, are adopting the flexibility of recurring revenue," said Tom Dibble, president and CEO, Aria Systems. "It's not a fad anymore; it's the new way to do business."
"From ordering produce from local farmers to leasing appliances and cars, the way we connect with products and services will be transformed by new pricing and billing models," added Dibble. "This will present unlimited market opportunities for those businesses, large and small, across virtually every industry. Innovations in recurring revenue management are making this possible for businesses and paving the way for continued disruption across all market sectors."
According to Incyte Group, nearly half (47%) of U.S. businesses have adopted or are weighing adoption of recurring revenue models. This will force new innovations that could include:
Dibble noted that forward-thinking enterprises that are using recurring revenue models over the past 12 months included such important innovators as World Wrestling Entertainment (WWE), Issuu and StitchFix.
Indeed, he said one of the biggest "takedowns" so far this year came when WWE announced that it was offering a $10 monthly subscription for viewing its live events on mobile devices.
"Recurring revenue management opens the door to innovation like never before for companies to expand and compete," added Dibble. "The changes that recurring revenue brings will effect a permanent, significant impact on the way business is conducted and how our lives are lived well into 2014 and beyond."
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