What’s the difference between subscriptions and data as a service?

Have you ever stopped to think about Data as a Service and how it differs to B2B subscriptions?

What is DaaS, and why is it important to subscription brands and their customers?

Here’s the summary of an in depth conversation with an expert from a market leading DaaS company.

Understanding the Need for DaaS:

• In the world of B2B subscriptions, there has been a quest for more products and features. An assumption this helps justify price increases. But it overshadows the core need for valuable insights.
• DaaS addresses the growing volume of information facing everyone. It provides tailored, actionable intelligence to businesses.
• People need help with data overload, get meaningful insights, and make informed decisions.

Transitioning from Products to Solutions:

• Traditional subscription models focus on offering products or features to customers.
• DaaS emphasizes providing ongoing value through data-driven insights and solutions.
• Businesses must shift from a product-centric to a solution-oriented mindset.

Overcoming The Fear:

• Executives often fear that commoditising data may undermine their business model.
• DaaS isn’t selling datasets. It’s about delivering continuous value through insights and applications tailored to specific needs.
• At its best, DaaS enhances business outcomes and fosters long-term relationships with customers.

Effective Pricing:

• Linking pricing to features or usage metrics needs to evolve. DaaS requires a more nuanced approach.
• Anchor pricing on the value delivered rather than the volume of data accessed.
• Customer discovery is key, rather than pricing discovery. Customers may not have a handle on what DaaS can do for them. To structure pricing models, first understand the desired outcome.

Seamless Integration and Usage:

• Delivering DaaS requires seamless integration and usage within the customer’s environment.
• Businesses must ensure compatibility and ease of access to maximise value.
• Simplifying the process of accessing and using DaaS enhances its adoption and effectiveness.

Customer-Centric Approach:

• Understand the nuances of the customer’s workflow and requirements.
• Tailor data solutions to address specific pain points and align with customer needs.
• Listen to customer feedback and iterate based on the evolving needs of customers

Value-Based Proposition:

• DaaS providers must be clear and articulate the value proposition of their offerings.
• Show how your solution contributes to better business outcomes.
• Emphasise the ongoing value derived from DaaS usage. Reinforce the importance as a strategic investment for businesses.

Data as a Service represents a transformative shift in the B2B subscription landscape. It is a pathway to unlock actionable insights and drive better decision-making. For the subscription business and customers.

But – and this is an area b2b subscription leaders in DaaS agree – the critical step is to run customer discovery to test ideas.

Substribe has been helping cross functional teams create ideas to test in market since 2018.

contact andy@substribe.co to discuss how