Several industries such as telecommunications, rental and information services have always had recurring revenue pricing models. However, in this new digitized era, many other industries, including software, hardware and health care, are moving toward this model.
A recurring revenue model is a solution/pricing model that generates a continuous revenue stream throughout the customer’s entire lifetime. This type of selling requires different types of customer contact jobs, including land, adopt, expand and retain roles. It also has significant implications for sales compensation plans: When and how should companies pay salespeople for sales results? Download the article to read more.
Article by Rachel Parrinello and Ted Grossman, Principal, Alexander Group
Published August 2018, Workspan, the Magazine of WorldatWork©