An ultimatum can force the subscription decision

If given the choice, many customers will prefer the freedom of à la carte purchasing over the commitment of a subscription, even if the subscription offers better value. To overcome this inertia, a business may need to present the customer with an ultimatum: subscribe or we can't do business.

This "all-in" strategy removes the safety net of one-off purchasing and forces the customer to seriously evaluate the subscription offer. It signals that the business is fully committed to the new model and believes it is the superior way to deliver value.

This is particularly important when transitioning an existing customer base from a transactional model to a subscription model.

• If both options exist: Existing customers will likely ignore the subscription and continue with the familiar transactional relationship. The new model will seem like a side experiment.
• If only the subscription exists: Customers are forced to confront the change. They will take the time to understand the new offering, and if they already value the relationship, they are more likely to make the switch.

Companies like Netflix, Salesforce.com, and TIGER 21 are successful in part because they do not offer a one-time purchase option. The only way to access their value is through a subscription. This commitment clarifies the value proposition and forces a clear decision from the customer.