You already have Netflix, how about a coffee subscription to go along?

Enjoy 30 days of your favorite coffee or espresso drinks. Unlimited and at a brilliant price. Explore our Classic Pass and Premium Pass below available for purchase through the Pret App!

This is the marketing copy for a coffee subscription from Pret A Manger, a popular British chain serving organic coffee and good food. Due to the covid outbreak, they had to halt operations for their 400+ stores and this led to the new line of business- coffee subscriptions.

And powering their subscriptions is a India-US startup called ChargeBee which has raised $55 million to power this transition! Yes, this is how the world is getting SaaS-ified, one step at a time.

Software is eating the world 
Mobile is eating the world
SaaS is eating the world!

– Dhruvil Sanghvi, LogiNext

Coffee Subscription is not a brand new idea, several players across the globe do this and just a quick internet search will tell you of one close to you. There are several reasons why this is happening and each of them is a point of discussion for this blog post.

1) A good business model

A subscription model is good for a business as it gives it continual revenues and it has transparency on what the pipeline looks like. And if you have the business acumen, you’d realise the impact of compounding on such a model. You have a customer with you and it is more like a partnership as compared to a one-time transaction.

From subscriptions for things like coffee to subscriptions for logistics optimisation for enterprises (that’s what we do @LogiNext), the model is working wonders for businesses across the spectrum.

2) Enhanced customer experience

From the end customer point of view, she now has the visibility and assurance of a consistent experience. The end customer after choosing the partner of choice has a lot more flexibility to choose and a larger say in how the product evolves. Even for something like coffee, a customer can give feedback and the business can make customizations wherever possible which is not possible in the on-time transaction model.

Yes, the subscription model is a lock in and the end-customer is tied up with a player but for anyone looking for long term partnerships, this is the way to go. Especially for large enterprises, SaaS is turning out to be a preferred model of operation. Companies with decades of experience are shifting to this model.

We @LogiNext work with brands like McDonalds, Singapore Post, Colgate-Palmolive and several others to help them enhance end-customer experience and automate their backend processes.

3) The pandemic effect

2020 has been a year of extreme uncertainty and this has accelerated the adoption of technology and automation across industries. Even for something as simple as getting a coffee, protocols have been required to be put in place and it makes sense to have a clear picture of where and how’re you’re getting your orders. A clear visibility on the supply chains and proper delivery mechanisms have necessitated the requirements of digitising and structuring backend operations.

The pandemic has also put the spotlight on logistics and supply chain to a great extent. A CB Insights report which mentions LogiNext talks of how there has been a 100% jump in the mention of the word ‘supply chain’ in earning calls globally. Optimised and automated logistics systems are the need of the hour to fuel business models like a coffee-subscription and if you’re looking for a tech solution, we have something for you.

Well, these are our thoughts on the world of SaaS and ordering a coffee! We’d love to hear from you on what you feel about getting a coffee-subscription?

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