The Rise of Subscription Models: How an Outsourced CPO Can Help Increase Recurring Revenue

Subscriptions seem to be everywhere now, don’t they? From streaming services to monthly beauty boxes, businesses are turning to subscription models because they help bring in regular income and build lasting customer relationships. But setting up a subscription service is not as easy as it looks—you need a plan and the right leader to execute it. That’s where a Chief Product Officer (CPO) comes in. However, if hiring a full-time CPO isn’t an option, outsourcing this role can be a smart solution. Here’s how bringing in an outsourced CPO can help you launch and grow your subscription model.

Why Are Subscription Models So Popular?

Customers love subscriptions because they get something personalised and consistent—whether it’s entertainment, meals, or regular deliveries of favourite products. Businesses love them because they bring in steady income and build customer loyalty.

But moving to a subscription model can get tricky. That’s where outsourcing a CPO comes in handy. They can guide you through the process and make sure it’s done right.

How an Outsourced CPO Can Help You Succeed with Subscriptions

1. Finding Out if Your Customers Are Interested

   Before jumping into subscriptions, you need to know if your customers would even want it. An outsourced CPO can help you figure that out by studying customer behaviour and checking what’s working in the market.

   Example: If you run a beauty company, an outsourced CPO might discover that your customers would love a personalised skincare box delivered each month. This could be a winning idea.

2. Creating a Subscription That Stands Out

   Subscriptions are everywhere, so your offer needs to be unique. An outsourced CPO will help you design a service that has something special. It could be through personalisation, exclusive access, or a bundle of products that offers more value.

   Example: A fashion brand might work with an outsourced CPO to create a monthly style box. Customers get outfits tailored to their taste, making them feel valued and keeping them subscribed.

3. Testing and Tweaking As You Go

   You don’t need to launch your subscription service fully developed from the start. An outsourced CPO can guide you through a small trial, launching it to a limited group, gathering feedback, and adjusting it before rolling it out to everyone.

   Example: A fitness company could test an online workout subscription with a small group of users. With the help of an outsourced CPO, they can tweak the service based on feedback before launching it on a larger scale.

4. Choosing the Right Price

   Deciding how much to charge for your subscription can be tough. Price it too high, and people might not sign up. Price it too low, and you could miss out on profits. An outsourced CPO will help you find the right balance by studying what your competitors charge and what your customers are willing to pay.

   Example: A streaming service could offer different price packages. With the guidance of an outsourced CPO, they could introduce a premium plan without ads for a higher price and keep a basic plan for those who want a cheaper option.

5. Using Data to Keep Customers Happy

   One great thing about subscriptions is the data you can collect from them. An outsourced CPO will help you use that data to improve the service and keep customers from cancelling. They’ll look at patterns and help you personalise your offerings to make sure people stay subscribed.

   Example: A meal delivery service could track which recipes customers like the most. The outsourced CPO can use this info to adjust future menus, keeping customers excited and coming back for more.

6. Making the Switch to Subscriptions Smooth

   If you’re changing from selling products outright to a subscription model, it can be tricky. An outsourced CPO can help make this shift without confusing or losing your customers. They’ll make sure your new service adds value and feels like a natural change.

   Example: A company that sells home appliances might want to switch to offering a subscription for regular maintenance and upgrades. With an outsourced CPO in charge, the transition can happen smoothly, and customers will see the benefits right away.

Real-Life Example: How an Outsourced CPO Launched a Subscription Model

Here’s an example: A mid-sized electronics company used to sell their products as one-off purchases. They wanted to create a steady stream of income, so they brought in an outsourced CPO to help them launch a subscription service for product support and exclusive content.

The CPO did the research, created a few different pricing packages, and tested the service in select markets. After making some changes based on customer feedback, the company launched the service on a wider scale. The result? More engaged customers and a new source of steady revenue.

Why Outsourcing Your CPO Role Makes Sense

Not every business needs a full-time CPO, and that’s where outsourcing comes in. You can bring in an expert when you need them, without the cost and commitment of a permanent hire. Here’s why it’s a good idea:

• Flexibility: You can hire an outsourced CPO just for a project or a certain amount of time—whatever works for you.
• Fresh ideas: Sometimes a fresh set of eyes can spot opportunities that others miss. Outsourced CPOs bring new ideas from working across different industries.
• Quick action: Because they’ve done this before, outsourced CPOs know how to get results quickly. They can help you move faster than if you were figuring it all out in-house.

Conclusion

Subscription models are a great way to keep customers engaged and bring in steady revenue. But to make them work, you need the right plan and someone who knows how to execute it. Outsourcing your CPO role gives you the expertise you need without a long-term commitment. With their help, you can create a subscription service that stands out in the market and keeps your business growing.