Businesses diversifying their revenue streams, especially through a subscription model, have been more resilient through different economic conditions than their traditional counterparts.
There are several factors driving the expansion of the subscription industry even in an uncertain economy, which include:
- Predictable, recurring, and stable revenue streams
- Bigger customer base and more valuable, long-term relationships
- Consumers’ shift away from ownership and more toward access
- Accelerated cycle of sales transactions to cash flows
- Improved digital channels for delivery
The lingering effects of the COVID-19 pandemic on supply chains combined with record inflation and rising interest rates have caused companies and consumers to re-evaluate spending in the coming months. It’s inevitable that subscription-based companies will be faced with contract modifications and the need for more flexible subscription plans based on consumption or usage. This webinar will address these challenges and the potential impact on revenue recognition.
Billy Parker, Tony Ricciardella