As technology advances and businesses become more customer-centric, Product-As-A-Service has emerged as a viable option for many companies. It's a subscription-based model that offers customers access to a product or service instead of selling it outright. This type of business model can be highly profitable if done correctly. What are the 10 steps to set-up your in house Product-As-A-Service?
1. SERVICES SELECTION
Identify added-value services currently available in a fragmented way and combine them to create a compelling full package solution.
2. IN-HOUSE OR PARTNERSHIPS
Based on the services you selected, decide if you will deliver everything on your own or team up with best in class partners.
Select which hardware to include in your As-A-Service offer. The assets need to be central to your customer's core business and mobile enough to be collected at the end of the As-A-Service contract.
4. OBSOLESCENCE RISK
Address the obsolescence risk by monitoring new technology roadmap, have a clear upgradeability plan and carefully define the future value of the asset.
5. SOLVENCY RISK
Is your target customer solvent or do they have a high-risk profile? The lower the solvency risk, the faster you will grow your As-A-Service business. Alternatively, you can transfer this risk to a partner.
6. SECOND-HAND MARKET
Are you ready to own a large fleet of assets and manage their second life? Which second- hand market will you easily be able to access when the kit is returned at the end of the contract?
Data is the new oil! Find ways to collect data and thus gain valuable insights into customer behaviour and enhance the user experience.
8. PAY PER WHAT
What are your customers looking for? The freedom to stop the contract whenever they want (opt in / opt out)? Are they happy to commit for 3 years? Do they want to pay per month? Per hour? etc.
9. EARLY EVANGELIST
Find a loyal customer willing to switch to As-A-Service. You can even co-build the offer with them to ensure relevance. Once signed, capitalise on this success and the next deals will be easier to close.
10. DO IT YOURSELF OR VIA EXPERTS
The shift to a As-A-Service is complex and requires strong expertise. You can do it yourself or find a partner like Black Winch to bring the project to the finish line faster. What's best for you?
Want more insights ? Are you starting your in house PaaS from scratch or need to scale it? Get in touch we will help you master the As-A-Service journey.