By Morten Suhr Hansen
Just a couple of weeks ago, we had the pleasure of welcoming a new Senior Consultant to Subscrybe. Kristian Madsen brings a strong background from the Danish startup scene within B2B and SaaS companies. After selling the company Blueprint Learning, which he founded back in 2013, Kristian is now ready to turn his attention to advising other subscription businesses across Scandinavia. And exactly, B2B subscription businesses are Kristian’s specialty and also his area of responsibility at Subscrybe as Senior Consultant.
This is the first time we’ve brought on a resource fully dedicated to this large and rapidly growing segment of the subscription market. Some might say it’s about time, and with good reason, as this space has been expanding rapidly in recent years. It’s also true that we already have quite a few B2B subscription projects under our belt. But now we’re excited to intensify our focus on this area.
It made me reflect a bit on whether the motivations behind more and more businesses subscribing to products and services rather than making traditional one-off purchases might be the same. I’ve come to the conclusion that two central motivations are especially driving this development: low capital commitment and increased flexibility, and a marked improvement in efficiency. Let’s take a closer look at the two areas.
Low capital commitment and maximum flexibility
When businesses invest in production equipment, machinery, and tools through subscription solutions, they gain access to the latest technology without large, upfront investments. Capital commitment is dramatically reduced, as businesses pay continuously and can scale up or down depending on their needs. This makes businesses more agile and able to react quickly to changes in the market.
Take, for example, Hilti, a global tool supplier with great success in Scandinavia, who offers construction companies access to high-quality tools through a subscription. The companies avoid large one-time investments and maintenance costs, while Hilti ensures the equipment is always updated, serviced, and available.
Another good example is Volvo Trucks, which offers “Truck-as-a-Service”:
The Swedish truck manufacturer now provides transport companies with subscription solutions, where companies subscribe to trucks instead of buying them. This model significantly reduces capital commitment and ensures customers always have access to the latest vehicles, with full service included.
Efficiency through SaaS subscriptions
Software-as-a-Service (SaaS) has revolutionized business operations by streamlining processes, administration, and workflows. Companies increasingly choose SaaS subscriptions over traditional software licenses to gain constant access to updated tools without the hassle of complex upgrades.
Take Danish company Pleo, for example. Their subscription-based platform for automated expense management streamlines how businesses handle spending. This reduces manual processes and frees up valuable resources for more strategic tasks.
GoLearn is another excellent example of how efficiency and subscriptions go hand-in-hand. This Danish company offers e-learning subscriptions across areas such as sales and marketing, IT tools, and leadership. Instead of sending employees on expensive offsite training, businesses can now offer on-demand learning that fits each employee’s schedule and needs.
Subscription as a strategic competitive advantage
Today, it’s become natural for many businesses to seek subscription solutions across nearly every area of operation. It’s a strategic choice that can provide clear competitive advantages. The flexibility and efficiency of subscriptions create business agility that traditional ownership models simply can’t match.
That’s why the winning businesses of tomorrow will be those that successfully embrace the potential of subscription models – both as subscribers and as providers.
So, welcome to Kristian – and welcome to the new subscription economy in the business world!
