Book SummarySubscribed, by Tien Tzuo

1-Page Summary1-Page Book Summary of Subscribed

The emergence of the Subscription Economy marks a transition from emphasizing products to underscoring services.

We are in the midst of a transformation as significant as the industrialization era. Tzuo characterizes the current economic period as being significantly shaped by models based on subscriptions. The transformation of business operations is altering customer engagement with companies. The global economy's evolution due to this change extends beyond just software or technology.

The focus of contemporary business models has shifted to prioritize customer needs above the product itself.

The conventional approach of emphasizing mass production followed by distribution is now outdated. Tzuo underscores the importance of redirecting attention towards customers rather than products. Companies are evolving from entities that engage in single transactions to ones that cultivate lasting relationships, thereby transforming from simple vendors to partners in collaboration.

Consumers are showing a growing preference for utilizing services instead of owning products, a trend that companies are starting to recognize.

Today's consumers have evolved. Customers place higher importance on the use of goods and services than on their possession. Owning a product is frequently seen as an inconvenience. Customers are drawn to the convenience and flexibility of services that deliver the outcomes they seek, rather than owning depreciating assets. The conventional retail industry is experiencing a decline, in contrast to the growing popularity of subscription-based offerings such as streaming platforms, personalized subscription packages, and shared mobility solutions.

Organizations like Disney are prime examples of this significant change. They have made a considerable impact in the entertainment sector, focusing on branded merchandise, and they recognize the necessity of maintaining close ties with their customers to ensure ongoing success. Established corporations such as Disney face the task of gathering valuable customer data. A customer who buys a Star Wars figurine at Walmart is regarded as a supporter of Walmart, not Disney. Tzuo argues that companies that fail to establish direct connections with their customers may encounter challenges in the years ahead.

Practical Tips

• Try out a tool-sharing program in your community to access equipment for occasional use. If you need a power drill for a one-time project, look for a local library of things or a tool-sharing initiative instead of buying one. This not only saves you money but also reduces clutter in your home.
• Support local service-based businesses by choosing them over product-based ones when possible. For example, if you need a lawnmower, instead of buying one, hire a local landscaping service. This not only supports small businesses but also relieves you from the maintenance and storage of owning a lawnmower.
• Organize a community swap event to exchange goods with others. This could be set up in your local community center or online through social media groups. Items like books, toys, and tools can be swapped, allowing you to use something new without buying it. It's a great way to reduce waste and connect with your community.
• Develop a tiered service model that allows customers to choose their level of convenience. Start by listing your services and identifying ways to offer them with varying degrees of flexibility, such as basic, premium, and VIP levels. For instance, a car wash could offer a basic drive-through service, a premium service with interior cleaning by appointment, and a VIP service that includes pick-up and drop-off of the vehicle.
• Try creating a subscription box for friends and family using items you're passionate about. This hands-on approach gives you insight into the appeal of curated experiences. For instance, if you love reading, assemble a monthly book pick with a few related goodies and send it to a friend. This personal touch can help you understand the value-add that keeps subscribers coming back.
• Create an experience around a common task to make it service-oriented. If you enjoy cooking, instead of just giving away recipes, offer to cook a meal with someone, teaching them the process and sharing tips along the way.
• You can leverage social media polls to gather insights on customer preferences by creating engaging content that prompts responses. For instance, if you run a small coffee shop, post a poll asking which seasonal flavor your followers would like to see next. This not only gives you direct feedback but also engages your customers in your product development process.

Companies are nurturing ongoing relationships to ensure a steady stream of income via subscription models.

Subscription models emphasize the importance of building enduring connections with customers, moving away from the conventional practice of concluding a sale before stepping back. The author emphasizes the importance of maintaining ongoing interactions with customers instead of focusing exclusively on individual product sales...

Subscribed Summary In order to succeed in the era of subscription-based business models, companies must implement substantial strategic and operational changes.

Companies must fundamentally transform their core structures, strategic approaches, and above all, their organizational philosophies to succeed in the era dominated by subscription-based commerce. Tzuo argues that traditional approaches centered on products clash with the changing anticipations of the consumer.

Organizations must dismantle internal barriers and foster a culture that places the preferences and viewpoints of their clientele at the forefront.

Companies organized into distinct departments that operate autonomously often face difficulties in swiftly adapting and reacting to changes. To guarantee that each decision is made with a focus on consistent revenue generation, it's crucial for different departments to work together with the customer's needs at the forefront. Tzuo emphasizes the significance of clearly delineated roles and advocates for intricate structures that extend past mere organizational diagrams, fostering a shared responsibility and sense of belonging among the workforce.

Effective collaboration and open dialogue among various departments are essential for providing outstanding service.

Businesses that flourish under this model excel by...

Subscribed Summary Businesses are progressively shifting towards subscription models that emphasize catering to the desires and requirements of their clientele.

The reach of subscription-based business models extends well beyond the realms of software and digital services, as demonstrated by the varied approaches of enterprises like Graze and Netflix. The transformational principles are being applied in various sectors, including Komatsu's 3D construction simulation and Fender's online guitar lessons.

The retail, media, transportation, and manufacturing sectors are all undergoing substantial transformations.

Industries that have historically concentrated on strategies centered around products are rapidly adopting models based on subscriptions. Tzuo underscores the need for conventional businesses to evolve by adopting subscription-based business frameworks.

Retail outlets are transforming by focusing on enhancing the overall customer shopping experience.

The decline of brick-and-mortar stores underscores the necessity for a change in strategy. Tzuo argues that the transformation of retail is dependent on creating personalized experiences that go beyond simple product exchanges. Retailers should enhance the in-store shopping experience by leveraging insights from interactions with customers and from analyzing digital data,...