Philips: Pioneering Subscription Models in Consumer Electronics

Recurrent partnered with Philips to develop and launch their innovative Try & Buy subscription programs for personal care and health products. Our comprehensive approach leveraged all three of our key service areas to help Philips transform their business model and engage customers in new ways.

1. Breakthrough Propositions: We crafted revolutionary product-service experiences that accelerate the transition to more flexible and sustainable consumption models:

   1. Developed the Try & Buy concept for Philips Sonicare, Lumea, and Avent product lines, allowing customers to experience premium products with low-risk monthly payments

   2. Created a unique breast pump rental service, addressing specific customer needs with a circular business model

   3. Designed user experiences that blend product excellence with digital services, such as the Philips Sonicare app for personalized oral care

2. Strategic Roadmaps: We created clear, actionable roadmaps for implementing and scaling these new subscription models:

   1. Developed a phased rollout strategy, starting with direct-to-consumer channels and expanding to key retail partners like MediaMarkt and Saturn

   2. Planned for expansion across different product categories and international markets

   3. Outlined strategies for circular economy initiatives, including refurbishment of returned products

3. Innovation Capabilities: We equipped the Philips team with the skills needed to excel in the subscription economy:

   1. Introduced agile methodologies for rapid proposition development and iteration

   2. Built capabilities in subscription management, including billing, customer retention, and lifecycle management

   3. Developed expertise in integrating product development with service design for a seamless customer experience (PAAS, Product-as-a-service)

Through this comprehensive approach, we helped Philips transition from a traditional product-centric model to a more flexible, customer-centric subscription model. The Try & Buy programs not only provide Philips with new revenue streams but also deepen customer relationships and support sustainability initiatives through product circularity.

How We Can Help Other Customers:

At Recurrent, we specialize in driving innovation and growth in consumer electronics and other industries transitioning to subscription models. Our three-pronged approach of Breakthrough Propositions, Strategic Roadmaps, and Innovation Capabilities can help you:

1. Develop innovative subscription offerings that address evolving consumer needs

2. Create clear, actionable plans for implementing and scaling new business models

3. Build internal capabilities to drive continuous innovation in product-service systems

Whether you're looking to launch your first subscription offering, optimize existing programs, or transform your entire business model, Recurrent brings the expertise and methodologies to turn visionary ideas into practical, scalable solutions. Let's collaborate to create breakthrough innovations that drive sustainable growth and positive impact in your industry.