SaaS model is famous in the IT industry, it’s like renting your software with no upfront Capex. This has helped the customers by taking the risk due to the Pay as Use model. It also brought a lot of competition as the customer has all options open to end the current utilization and move to a new one.
The product companies also become more responsible for consumption rather than one time sales.
The sales have moved to Customer Success to focus on the consumption of Software as Service.
Considering India’s economy, a factor of population and change in Trend we can certainly assume the similar models are picking up in other Industries. Take a look at OLA or Uber or Rent Furniture. Many don’t want to invest and lock their money and slog to pay the EMIs. The future would be pay as you Go.
Is your Industry ready to adopt this change? Forget about adoption, would you be able to acknowledge the changing pattern?
We have a hypothesis, the Construction and Real Estate industry which has seen the slowdown due to change in new customers mentality will start looking into the new business models.
This may include-
1. Residential Flats on rent(no sale)
2. High monthly cost but no upfront investment
3. End to end service to ensure customer continuity
4. No product sale but services sale(upsell/cross-sell)
5. High competitive market due to high-quality expectations
There are high chances that with this the real estate industry will have a change in scenario. The real estate industry will move away from one-time sales to consumption sales. Client satisfaction would be in top priority. We would not see the drastic growth as we have seen in the last decade but it would be steady growth. Small players may merge with large players. Less customer cheating will happen due to the high pressure of customer retention.