Advances in technology, economic pressures and shifting cultural norms are making new consumption models such as subscription, sharing and renting more appealing to consumers than traditional ownership models, and businesses are having to adapt
A new report "Supply on Demand: Adapting to Change in Consumption and Delivery Models" by The Economist Intelligence Unit and sponsored by Zuora has found that 51% of businesses are changing how they price and deliver goods and services, responding to shifting consumption patterns they are seeing in their own customers.
“The shift to new consumption and delivery models is taking place against the backdrop of more empowered consumers, who increasingly seek convenience and better value for money in goods and services," says Zoe Tabary, the editor of the report. "This is creating technical and organisational challenges in implementing new models, but businesses are starting to take advantage of the opportunities that they represent.”
The report also found that these new models will present new revenue opportunities, better differentiation from competitors and enable ongoing relationships with consumers. But they will need to overcome the technical, organisational, regulatory and financial issues that stand in the way of making them work.
Each company faces a different set of circumstances, but there are some common elements all should think about, say executives interviewed in the report. Backing new delivery models with a strong business case, developing a seamless user experience, working with regulators and monitoring corporate reputation are some of the specific areas which new delivery models need to encompass.