Philips launches subscription module in collaboration with The Subscription Factory

Philips launches subscription module in collaboration with rb2 and Subscription Factory

The current Philips e-commerce website has been expanded with various forms of subscriptions for the Lumea and Sonicare products. With the subscription module realized by rb2 and the subscription-related advice from Subscription Factory, Philips is now fully involved in the subsciption economy.

Subscription forms for products are not new, we stream films and music on a massive scale via Netflix and Spotify. However, Philips is a pioneer in offering personal care products as a subscription. For example, the subscription module offers the possibility to try a Lumea IPL hair removal device before paying the full amount. The reception of Sonicare toothbrush attachments can also be arranged via this new module.

“We see enormous opportunities in the subscription economy. With the help of rb2 and Subscription Factory we have established a technically strong and scalable platform in a short time. With this solution we build on the relationship with our customers and the future of Philips.” said Marinus van Diggelen, Director of Digital Products Marketing & New Business Models, Philips.

Seamless connection to current platform

Multinational Philips already has a substantial e-commerce platform. The application realized by rb2 fits in seamlessly with this. "There is now a state-of-the-art subscription system, built under cloud-native serverless architecture, in the Philips Azure cloud," said IT Director Roelof Blom of rb2.

Effective collaboration

With their advice on the entire subscription economy and their Zuora expertise, Subscription Factory has ensured a perfect design of the Zuora platform, a complete subscription engine, which manages subscriptions, but also manages the entire back-end of the financial challenges around subscriptions.

"Pricing and Packaging" are crucial for being successful in the Subscription Economy. Subscription Factory has guided Philips to a number of subscription archetypes to get the different brands and regions successful in the Subscription Economy, said CEO Timo Zuidgeest of Subscription Factory.

Thanks to the use of rb2 and Subscription Factory, there is a lean but technically strong subscription module that is ready for future expansion within Philips. At this moment the subscription module is only available in the Netherlands, but it is easy to implement at an international level. And with Zuora as a foundation, those possibilities are endless.