By Jessica Salerno, OSCPA senior content manager
Firms might have to consider a subscription-based pricing model if they want to stay competitive in the future, said one CPA.
The State of Business podcast to discuss the future of subscription model pricing for accounting firms. A subscription model “is a periodic payment in exchange for frictionless and recurring benefits of services from the customer's perspective.”
Baker said he thinks this frictionless experience is something accountants can offer their customers.
“It is a business model change,” he said. “And it's completely different. It's not just about being paid monthly. It's a completely revamped business model. And it does scare people because it ultimately is going to cannibalize your old business model.”
Baker said business models will always change, that he views subscription pricing as a “weigh station to another business model,” and that it’s not realistic to think a business can operate the same for 50 years anymore.
Whether firms realize it or not, Baker said, their customer experience is being compared to sites like Amazon, where things are easy with one-click service.
“We have a very narrow conception of who our competitors are,” Baker said. “We can think they're just other accounting firms, possibly H&R Block, but now you're competing against any organization that has the ability to raise your customers’ expectations.”
While some firms will continue resist, Baker said those that embrace subscription pricing will be glad they did years from now.
“Certain people just absolutely see it, and they get it,” he said. “And they realize that if they adopt this, they're going to be one of the pioneers. And they're going to end up blazing the trail for others. And I think that's exciting to be part of a new movement.”
Listen to Ron Baker’s presentation at the upcoming Virtual Accounting Show. Register here.Listen to the entire podcast episode.