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Report: Recurring revenue adoption to continue in 2014 | Chain Store Age
Report: Recurring revenue adoption to continue in 2014 San Francisco -- The trend of companies adopting recurring revenue surged in 2013, with brand names using new billing and pricing models to grow sales and deepen customer loyalty. Recurring revenue technology provider Aria Systems projects this surge will continue in 2014 as more companies adopt recurring revenue models because of their flexibility and convenience for customers. According to data from Incyte Group, nearly half (47%) of U.S. businesses have adopted or are weighing adoption of recurring revenue models. Aria Systems predicts this will force new innovations that could include food producers bypassing grocery stores to sell directly to consumers on a subscription basis, as well as “pay as you go” options for appliances and automobiles, subscriptions to auto-based digital services, and pharmaceutical companies selling allergy medications directly to consumers on a monthly basis. The cloud will assume an even more pivotal role in the area of recurring revenue as new service brokers emerge to help companies monetize services ranging from providing movies to music to obtaining credit scores. “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.”
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