recurrence It is important in any business. Recurrence understood not only as the customer repeating his visit, but also buy our products or services. The Monthly Recurring Revenue (Monthly Recurring Revenue – MRR); that is, those incomes that repeat with some stability (normally on a monthly basis, although it can also be weekly, annual…), they are necessary in all businesses, including those on the Internet.
For this recurrence to occur, it is necessary that the client needs our product or service with some continuity, so we must never neglect this aspect.
Why is MRR or recurring income key to your business?
The answer does not support discussion, because we have to secure a source of income for the business. The normal thing is that if a company does not have a series of fixed income, long-term viability cannot be assured either.
MRR: recurrence models
There are various formulas to make the client have to return to our business, as for example happens with car dealerships, where after buying the car, customers go to undergo inspections. Or with home insurance, in which you pay a fee to cover certain things in the house, but for those repairs that are not covered, such as putting new plugs in the house, they give you discounts (it is cheaper than going to a professional who does not belong to the company).
The traditional model of generating this type of income is not recent, since the majority of recurring income is generated through subscription.
Sure you are subscribed to enough companies without having thought about it -just like your parents and grandparents have been-: to a telephone company, to an Internet provider (it can be the same as the telephone company), to the Association of…, to a television channel, to the gym (you can include the physiotherapist with your bonus of 10 sessions or the beauty center with 5 peeling sessions in a year), be a member of the country club or a sports club, a newspaper, etc.
exist different types of subscriptions: the fixed, the unlimited, the limited subscription (a specific number of uses of the service is purchased) or those that are only paid for the use of the service.
MRR and product life cycle
Thanks to the data that users provide us with their Internet browsing and their comments on the , there is a formula that is gaining strength within the recurring monthly income and that is the life cycle of the products.
Until now, companies calculated when could a customer need a product (for example, changing a washing machine due to obsolescence) and they anticipated their wishes by offering them offers to change the appliance for another of the same brand. Now, if we listen to network users We can anticipate your wishes even more, since there are many times when the washing machine does not last as long as the companies have calculated or you want to change, even if it works well, from a filter coffee machine to a capsule coffee machine.
And, depending on the type of business, we can offer products or services that they still do not know what they “need”, such as offering them a box to stay in hotels on their anniversary date or for Valentine’s Day, or if we know they have school-age children, offering summer camps, textbooks, clothing schoolboy, the end of year gift for the teacher, etc.
Each company should study ideas to implement recurrence in their business and always keep innovating.
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