Subscription Model for Lawn Services

This assignment examines the benefits of implementing a subscription-based model for Lawn PLC, a hypothetical lawn service company in Tel Aviv. It argues that transitioning from a transactional to a subscription model would lead to increased revenue and customer loyalty by ensuring recurring business. The paper suggests strategies for Lawn PLC to implement this model successfully while addressing potential challenges such as customer hesitation due to lack of experience with the company.

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Digital innovation

Introduction
The business world today is mainly characterized by drive to improve sales and company
profitability in order to remain in business even in the face of increasingly challenging business
environment. According to the principle number 6 Revenues: From transaction to subscription,
companies should focus on ways that make customers come back occasionally to buy from the
company as opposed to when they only come once and disappear for long period of time before
returning to make another purchase from the company.
This paper will use Lawn PLC, an hypothetical company that offers lawn services within Tel-
aviv city in Israel. The company specializes in home market as well as the corporate market
where the company beautifies the garden and mown grass to short and desirable level that makes
the company to look more clean and beautiful. The company also designs the gardens using
pruning the fence line into specific shapes and designs that appeal to the outside world1.
The company has one goal of improving its sales and revenue. This paper will attempt to use
principle number 6 Revenues: From transaction to subscription to come up with ways through
which the company can improve its sales. Therefore, this paper seeks to improve sales aspect of
the Lawn PLC1.
1John Warrillow, 'The Network Imperative’' (2013) 1.

Lawn services are depends much on the taste of the client and the technique of the service
provider. In this case for a customer to become loyal to a certain lawn service provider then this
particular provider must have techniques and skills that shape the client’s compound in a way
that the owner likes it. Lawn PLC should therefore put plans in place to tie down all her clients in
to a long term agreement as opposed to what the company is currently practicing. At the moment
the company depends on walk in customers. This business strategy is not sustainable in that the
company can not afford to continue relying on it3. Therefore Lawn PLC should ensure that all
her customers subscribe to their services for a certain period of time such as one year. This
means that the company will be sure about getting business as the contracts tie down the clients
for repeat business. In order for this strategy to be more successful, Lawn PLC should ensure that
her services are top notch so that client’s will not have difficulty in subscribing to it for a long
period of time. The benefits of this arrangement are that the company will be assured of business
for the foreseeable period of time and that the company will get an opportunity to gain valuable
long term experience in lawn service. Expected challenge is that customers might be a bit
hesitant to commit for long term business if they don’t have experience working with Lawn PLC
to be able to know whether the company can provide them good services or not2.
In summary, subscription mode of doing business is better than transaction mode because there
is a lot of repeat business in subscription mode compared to the latter. Repeat business leads to
more revenues for the company which translates into bigger profit for the company.
2John Warrillow, 'The Network Imperative’' (2013) 1.
3Kalle Lyytinen, Youngjin Yoo and Richard J. Boland Jr., 'Digital Product Innovation Within
Four Classes Of Innovation Networks' (2015) 26 Information Systems Journal.

References
Lyytinen K, Y YooR Boland Jr., 'Digital Product Innovation Within Four Classes Of Innovation
Networks' (2015) 26 Information Systems Journal
Warrillow J, 'The Network Imperative’' (2013) 1