The truth of the matter is that, unless you have a crystal ball, you can never be certain of what the future holds. That does not mean that you cannot make some informed guesses, based on what is currently happening. None of this is set in stone but it does seem likely based on what has happened in the world of recurring revenue models so far.
So let’s take a look at what the future is likely to hold for companies who have adopted recurring revenue strategies.
- More businesses will travel the recurring revenue route. As a result, they will provide more options for customers and create greater competition. This means that companies who already have a recurring revenue strategy cannot take things for granted. They need to work on being more creative with the packages and services they offer.
- The billing software market will remain fiercely competitive. This means that for the next few years, at least it should be a buyer’s market. It also means that some of the major software players may make acquisitions in the SaaS billing market.
- The Internet of things will move from being something that is often spoken about to something that is a regular part of life. This is if Garner’s predictions of 26 billion connected devices by 2020 are anything to go by.
- As we said, none of this is guaranteed, but it is highly likely. If all of this happens then many businesses will undergo major transformation. The way technology keeps developing, it’s anyone’s guess what next big revelation is around the next corner. That’s why the most important thing for any business is its ability to adapt. This means that if you want to continue to be successful, you need to make sure that your business is future proofed.
How can you future proof?
If you are looking at adopting, or have already adopted, a recurring revenue model you need to make sure that it does not lock you into a particular solution. You have to make sure that the systems and processes you have in place enable you to be adaptable. What happens if you are operating a product that in a couple of years’ time has been developed to operate remotely. Are you going to be able to monetize that change successfully? You have to start planning for the future now. You have to look at how you are going to develop your monetization and how you are going to compete when more competition enters the marketplace. It’s time to get creative.