Over the past decade, the “as a service” business model, where a service is the product offering, has seen massive growth.
As we continue to evolve from a strictly goods-focused society, this puts consumers in the driver’s seat to create value from a service rather than just obtaining or consuming a product.
That said, “as a service” business models are not one-size-fits all and encapsulate a variety of models being adapted by modern businesses.
Consider why the as a service business model is attractive to consumers, and why it is so successful.
Types of “As a Service” Businesses
There are a wide variety of “as a service” business models with different purposes and goals, spread across a variety of industries and business sectors. The most common are:
- PaaS (Platform as a Service
- SaaS (Software as a Service)
- SaaS (Security as a Service)
- IaaS (Infrastructure as a Service)
- DaaS (Desktop as a Service)
- DaaS (Data as a Service)
- FaaS (Function as a Service)
- RaaS (Robot as a Service)
- TaaS (Testing as a Service)
Despite all the different services these acronyms represent, and the business industries and sectors they are spread across, their core business structure is the same: the “as a service” model.
Offering something as a service as opposed to a product creates an aura of exclusivity around it because its supply, or its access, is strictly controlled by virtue of the service only being available through specific providers.
“As a Service” Consumers
The “as a service” model is attractive to consumers largely because it doesn’t involve the ownership of anything. Sometimes, people just don’t want to deal with the investment into hardware of a product and the permanence of its purchase, versus services that can be canceled at any time.
Why This Model is Successful
The “as a service” business model is attractive to consumers because it implies that there will be a continuation of the service provided. If a consumer was provided with a service that they enjoyed and the service meets a need that has to be fulfilled regularly (i.e., like a massage for health purposes), they will have no problem making a continuous investment in the service.
Take TaaS (Training as a Service) for example. E-Learning company Userve, which offers Responsible Beverage Service Training and food handling safety courses, offers ease-of-use and online accessibility to training traditionally found in a classroom. Userve a great example of how businesses can leverage the “as a service” model for success.
Customer engagement and retention is everything in business. If you can keep getting consumers to come back to you for the service you provide, you can maintain a loyal customer base, and grow your business significantly.
