Productive Innovation:Paul Mampilly and the Subscription Service Model

Paul Mampilly is skilled at business advisor. In many circles, “guru” is his name. His credentials begin with a BBA in Finance Accounting from Montclair State University and an MBA from Fordham Graduate School of Business. A noted marker of his skills in finance was his extremely successful participation in the Templeton Foundation investment competition during the crisis year of 2008 and 2009.

Based on his familiarity with the stock market, Mampilly’s recent attention focuses on businesses that provide subscription services. Amazon Prime maintains over 100+ in subscriptions. Netflix holds over 139 million in monthly subscriptions. Spotify’s music streaming platform has over 200 million subscribers. The success of these companies, based on maintaining a high roster of customers, bolsters the reliability of the business model. Read more about Paul on

The origin of the subscription service model began with Amazon. Earning high revenues was a sign to influence how other stores online conduct business. To date, subscription services are a vital part of internet business. Paul Mampilly says this “innovation is not about technology”. The whole revolution in service is about people. Amazon tapped into how people work around computer culture. Keying into how they interface with computers to create habits allowed Amazon to create a business model that streamlined into daily living. The process made being a client to their services expedient to most ways of living. The additional key to staying relevant is in providing “cheaper, easier, and more convenient” services. Paul Mampilly argues this is why people change habits and are willing to adopt something new.

Subscription services inherently build closer relationships between businesses and their clients. Paul Mampilly believes this is an attractive point for starting or maintaining a model. Having a guaranteed customer base every month is prime reason enough to offer a subscription option. The caveat is not every business is going to be able to succeed by offering subscriptions. If markets teem with them, consumers will only choose those most vital to daily living. Despite this, Paul Manpilly says the subscription model is inherently safe. It offers stability. Both of these are the main considerations when contemplating investment.

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