The Three R’s of Creating a Recurring Revenue Model

There’s no denying that having a loyal customer base can provide tremendous lifetime value for a business. 

The business of a repeat customer -- whether it is retail, grocery, or software -- can create myriad upsell and cross-sell opportunities for a company. Better yet, the customer can become a loyal advocate for the brand. But how can you turn what could be a one-time purchase into a loyal brand advocate?

By creating a recurring revenue model. 


Take Peloton, for example. Peloton has become a household name in the past year, with hundreds of new customers scrambling to get their names on the stationary bike that took the pandemic by storm. 

But as you very well know, Peloton doesn’t just sell stationary bikes. The true value is in the monthly subscription that many pay for to watch the on-demand videos, monitor stats, and connect with other Peloton users. 

This recurring revenue -- the monthly subscription -- has turned many one-time stationary bike purchases into loyal brand advocates. This type of recurring revenue not only affects the bottom line, but can also translate into increased business valuations, putting a shiny bow on a business for potential investors. 

Create an Ongoing Connection with Retention, Revenue & Referrals 

At Blustream, we value the long-term connection forged between customers and their products through after-sale product engagement

Through after-sale engagement, businesses can use purchased products to strengthen their customer relationships. With every product having a life after the sale, defined by the unboxing, onboarding, usage, and maintenance stages of the consumer-product continuum, businesses can truly connect with customers for life.


The secret sauce to creating these long-term relationships lies in the three ‘Rs’ -- retention, revenue and referrals.

  • Retention: After-sale product engagement can drastically reduce churn and increase retention, as companies are constantly connecting with customers via product touchpoints throughout the lifecycle of the product. 
  • Revenue: With a clear understanding of product usage, businesses can easily cross-sell and upsell the customers that are using their products more frequently. Like Peloton, this can create an ongoing steady, predictable revenue stream for the business. 
  • Referrals: Happy customers are going to tell their friends and family about purchases and businesses they are excited about, becoming brand advocates without any investment in marketing or sales dollars.

As mentioned, product touchpoints can fuel these long-term relationships, where brands create specific post-sale engagements to connect with their customers at exactly the right time. Source data, like customer location, product usage, purchase date and more, can drive these post-sale product touchpoints that will help businesses optimize customer experiences and drive recurring revenue. 

How to Build A Successful Recurring Revenue Model

Blustream recently teamed up with Particle.io to take a deep dive into building a successful recurring revenue model with the Internet of Things (IoT). 

In this on-demand webinar, Blustream CEO Ken Rapp and Particle Chief Revenue Officer Rinus Strydom walk through successful recurring revenue models and how businesses can harness the Internet of Things (IoT) to grow recurring revenue, customer satisfaction, retention, and more. 

Watch now to: 

  • Learn how to build a scalable business model that delivers continuous, recurring value and after-sale product engagement
  • Discover the best IoT use cases that are best suited for solving real business problems
  • Learn best practices for building a connected enterprise IoT product


Click here to watch “The Peloton Model: How to Build a Successful Subscription Service with the Internet of Things.”

Watch Now
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