Businesses mostly provide licenses to customers when they make a purchase. This means that the customer pays the business and receives permission to use their product as much as they want. However, businesses are starting to turn towards the Content as a Service CaaS model. Continue reading to see what it is and how it can benefit your business.
What Is CaaS?
Content as a Service(CaaS) means that your business provides content to your customers based on a subscription. Think of it like a streaming service: the customer pays a monthly or yearly fee to get full access to your content. The content will vary based on what you want to provide your customers through this service.
While many people associate monthly payments with streaming services and virus protection programs, you can create your own CaaS. This will depend on your business and the content that you can provide to your customers. This gives CaaS plenty of versatility and options to improve it and provide an excellent service.
CaaS And Licensed Content Differences
Licensed content has been the standard for businesses. In essence, a customer pays the company a set amount of money and hes or she gets full access to that content. However, customers usually don't get new updates and need to purchase a new version when it gets released. On top of that, they can usually use it offline.
CaaS means that your customers continuously pay for the service and can use it as much as they want. Whenever updates happen, they gain access to the update as long as they paid the most recent fee. However, these types of services usually don't include offline functionality, which could pose a problem if the customer's internet goes out.
Why Businesses Need It
In short, the CaaS model allows businesses to make more money. They can charge customers the monthly or yearly rate, allowing them to continuously charge for the product and make more money as they provide that service. On top of this, you can better measure customer loyalty based on whether or not they stick with your CaaS model.
While you run the risk of customers buying it for one month and then ending their subscription, you still receive that money with a lower chance of customer backlash. A customer is much more likely to get upset over spending $80 for a software than $10 to use it for a month. This will help you to gain better reviews and lower poor reviews.
The Benefits Of CaaS
While businesses get plenty of benefits through CaaS, customers gain benefits of their own. First off, customers don't have to commit to the content: they can try it out for a month and see if they like it. They can then pay for the service as they need it and end the subscription at their own convenience. This makes it easier to start using your content.
As another bonus, they don't have to worry about buying the newest model. Instead, they just pay for your CaaS and they have access to the most updated version. This way, customers don't feel scammed if they buy your content and then you update it a week later. This keeps everyone subscribed happy and up-to-date with your products.
Conclusion
Even though you could stick with the licensed model, you should look into switching to the CaaS model. By taking advantage of this payment model, you can make more money, gain loyal customers and provide customers with constant updates instead of purchasing a new license.
