Ken Uchikura Newsletter Vol. 302 Subscription Business
Sep
11
Subscription Business
At my company, we base our services on a subscription model. In the software development industry, the common business model is based on contracts, where software is developed according to the customer's specific needs, and a set amount is paid. While contract-based businesses allow for highly detailed services that fully meet the customer’s requirements, it also means that the developed software belongs to the customer. Additionally, the software tends to have limited versatility, making development costs higher.
However, by developing software for subscription use, it can be utilized by multiple customers, which significantly reduces the unit cost. Another major advantage of the subscription model is the ability to secure a stable stream of revenue. In contract development, once a project is completed, the revenue stream stops. There are no earnings until the next project is secured, leading to a lack of stability. With the subscription model, revenue is generated regularly, usually monthly or annually, allowing for more long-term business planning.
Moreover, through a subscription service, we can continuously build relationships with customers, enhancing satisfaction through ongoing improvements and new features. This helps us continuously provide value to our customers, reducing churn rates.
Of course, to successfully offer services under a subscription model, efforts to maintain high service quality and strengthen support systems are necessary to ensure customer satisfaction. In return, it provides the potential to build a stable business foundation.
At PSPINC, we are focused on developing systems that can be offered as subscriptions in partnership with our customers. Rather than simply delivering software, we collaborate with our customers as partners in long-term business growth. Through this approach, we aim to build services and systems that customers can continuously utilize, contributing to their business development.
Specifically, by carefully understanding the customer’s workflow and needs, we build systems that improve operational efficiency and reduce costs. This allows customers to leverage the latest features and technologies while keeping initial investments low, and as their business grows, they can scale the system accordingly.
Furthermore, the subscription model includes regular software updates and maintenance, ensuring that the system remains optimized. Our support team also responds swiftly to any issues, allowing customers to use our services with peace of mind.
At PSPINC, we are fully committed to providing ongoing value through strong partnerships with our customers. By doing so, we strive to build long-term and stable business relationships, working together to achieve mutual success.
However, by developing software for subscription use, it can be utilized by multiple customers, which significantly reduces the unit cost. Another major advantage of the subscription model is the ability to secure a stable stream of revenue. In contract development, once a project is completed, the revenue stream stops. There are no earnings until the next project is secured, leading to a lack of stability. With the subscription model, revenue is generated regularly, usually monthly or annually, allowing for more long-term business planning.
Moreover, through a subscription service, we can continuously build relationships with customers, enhancing satisfaction through ongoing improvements and new features. This helps us continuously provide value to our customers, reducing churn rates.
Of course, to successfully offer services under a subscription model, efforts to maintain high service quality and strengthen support systems are necessary to ensure customer satisfaction. In return, it provides the potential to build a stable business foundation.
At PSPINC, we are focused on developing systems that can be offered as subscriptions in partnership with our customers. Rather than simply delivering software, we collaborate with our customers as partners in long-term business growth. Through this approach, we aim to build services and systems that customers can continuously utilize, contributing to their business development.
Specifically, by carefully understanding the customer’s workflow and needs, we build systems that improve operational efficiency and reduce costs. This allows customers to leverage the latest features and technologies while keeping initial investments low, and as their business grows, they can scale the system accordingly.
Furthermore, the subscription model includes regular software updates and maintenance, ensuring that the system remains optimized. Our support team also responds swiftly to any issues, allowing customers to use our services with peace of mind.
At PSPINC, we are fully committed to providing ongoing value through strong partnerships with our customers. By doing so, we strive to build long-term and stable business relationships, working together to achieve mutual success.
Kenichi Uchikura
President / CEO
Pacific Software Publishing, Inc.
ken.uchikura@pspinc.com
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ABOUT PSPINC
PSPINC (Pacific Software Publishing, Inc.) is a technology company based in Bellevue, Washington, USA. Founded in 1987, PSPINC provides web hosting, email hosting, and other internet-related services to businesses and individuals worldwide.
In addition to its hosting services, PSPINC also offers website design and development, domain registration, and online marketing services. The company has data centers located in the United States and Japan, and it offers multilingual support to its customers.
PSPINC has a strong focus on customer service, and it has received numerous awards and accolades for its quality of service over the years. The company is committed to staying up-to-date with the latest technology and industry trends in order to provide the best possible solutions for its customers.
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