Lhasa OMS: Building Recurring Revenue Through Subscription Innovation
How custom subscription architecture created a new revenue stream: From rejected vendor quotes and complex requirements to seamless auto-ship and sustainable growth
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Industry
Healthcare/Medical Supply Distribution
Platform
Adobe Commerce
Challenge
Custom subscription requirements beyond standard solutions
Investment
Recurring Revenue Growth Engine
THE CRISIS
Growth Constrained by One-Time Purchase Model
The Business Challenges Limiting Revenue:
Market Opportunity Gap
Recurring Revenue Need
Healthcare practitioners required regular inventory replenishment, but Lhasa OMS lacked subscription infrastructure to capture predictable recurring revenue from medical device and supply orders.
Solution Search Failure
Vendor Limitations
Standard subscription platforms couldn't handle complex requirements: product-specific discounts, customer-type restrictions, and flexible subscription management. Multiple vendors quoted "crazy costs and timelines" or declined entirely.
Customer Experience Friction
Manual Ordering Burden
Solo practitioners and small practices faced procurement challenges—phone orders, forgotten reorders, and barriers to consistent purchasing created frustration and order errors.
Business Impact: Lhasa OMS, the largest U.S. distributor of acupuncture supplies with over 9,000 in-stock products, was leaving significant recurring revenue on the table.
Without subscription capability matching their complex business requirements, they couldn't serve practitioners effectively or build predictable revenue growth.
THE TRANSFORMATION
Subscriptions Growth Engine Built for Healthcare Distribution
TechNWeb approached the challenge by implementing a flexible subscription solution addressing Lhasa OMS's unique requirements rather than forcing fit with off-the-shelf limitations
Comprehensive Subscription Revenue Platform
Our methodology centered on building robust subscription infrastructure with the flexibility to handle complex B2B healthcare distribution requirements
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Magento Subscriptions & Recurring Payments Module
Implemented enterprise-grade subscription infrastructure enabling auto-ship functionality, recurring billing automation, and centralized subscription management
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Custom Backend Administration
Developed intuitive yet powerful admin interface for managing product-specific subscription availability, customer-type restrictions, and flexible discount structures
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Optimized Customer ExperienceRedesigned shopping cart and checkout flow supporting both one-time purchases and subscription enrollment, with clear navigation for practitioners managing multiple subscriptions
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Recurring Revenue ConsultingProvided strategic guidance on subscription business model development, pricing strategies, and customer lifecycle management
Phase 1: Analysis & Architecture
Custom Solution Design
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Assessed complex business requirements rejected by other vendors
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Implemented a flexible subscription architecture supporting product-level customization
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Developed backend admin capabilities for managing subscription availability and restrictions
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Created technical specification addressing customer-type based rules and discount management
Strategic Foundation:
Feasibility Confirmed
Comprehensive solution addressing all requirements without prohibitive costs or timelines
Phase 2: Subscription Infrastructure Build
Platform Development and Integration
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Installed a subscriptions and recurring payments module for the Adobe Commerce platform
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Built custom backend admin interface with robust product management capabilities
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Developed checkout experience optimizing conversion for both purchase types
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Collaborated with Creative Director on user experience design
Technical Achievement:
Flexible Platform
Intuitive customer interface backed by powerful administrative controls
Phase 3: Customer Experience
Conversion and Lifecycle Management
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Launched seamless subscription enrollment and management experience
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Enabled customer control: pause, cancel, and re-subscribe functionality
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Automated recurring billing processes for improved customer lifetime value
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Established communication touchpoints supporting customer retention
Business Outcome:
New Revenue Stream
Sustainable recurring revenue model serving practitioner needs effectively
THE OUTCOME
Subscription Model Transforms Business Economics
"It was the flexibility for the custom work that put us over the edge with TechNWeb. I think their business model is quite brilliant. They have a full development company, and this is a way to drive business into it. I appreciate that because we always knew that we can rely on them even beyond subscription if we needed to."
KEY TAKEAWAYS
What This Means for Your Business
Recurring Revenue Requires Custom Flexibility
Lhasa OMS discovered standard subscription platforms couldn't handle complex B2B requirements. Custom development delivered capabilities other vendors couldn't provide at reasonable costs.
Your takeaway:
Don't compromise business requirements for off-the-shelf limitations.
Subscription Models Transform Business Economics
Moving from one-time purchases to recurring revenue created predictable growth, improved customer lifetime value, and reduced churn through automated replenishment.
Your takeaway:
Evaluate where recurring revenue models could transform your business model.
Partner Capability Matters More Than Product
The difference wasn't the technology—it was TechNWeb's willingness and capability to build custom solutions when others quoted "crazy costs" or declined.
Your takeaway:
Choose partners based on flexibility and problem-solving capability, not just standard offerings.
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