Should you anchor a subscription service to a deliverable or to an outcome?

The subscription service model competes at the business model level.

However, should you anchor a subscription service to the outcomes that result in buying the service or in the deliverables?

Here’s a closer look at both:

Anchored to Deliverables (aka “the stuff”):
• You’re competing on the business model level and against the traditional notion of a custom “scope” per client
• You’re potentially leaving money on the table by not value pricing but are offsetting that by increasing LTV
• The positioning makes it easy for the buyer to understand and removes friction from the buying process
• It also lowers the stress for you since you know precisely what you have to deliver on
• If everyone else is selling the same subscription, you can easily become a commodity

Anchored to the Outcome (aka “impact to client”):
• You’re competing on the business model but increasing the value by specializing the service to a predetermined outcome
• This path requires strategy and possibly a custom roadmap (can be templatized) per client to ensure the subscribed services impact are maximized
• You can increase subscription prices because people aren’t buying a service, they’re buying an outcome
• It will be easier to be a results maverick rather than a scope legalist in this scenario
• However: If the scope becomes too loose you may have to consider value pricing or performance-based pricing instead

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