Start, build, and scale your organization in the Recurring Revenue Economy with the most comprehensive product suite in Microsoft Dynamics 365. Bluefort’s lead-to-payment business automation enables recurring revenue SMBs and Enterprises to scale and cut costs.
Increase revenue by 20% with up and cross-selling opportunities, customer portals, eradication of sales leakage, unlocking FSCM Loyalty functionality, and solid revenue management capabilities.
Mitigate overhead by up to 25% and control your cost/revenue ratio through enterprise-wide connectivity, finance and sales process automation, and a lean organisation.
Increase loyalty and reduce churn with self-service customer portals that enable your customers to manage their own subscription plans.
Project payback after 1 year & an NPV of 5 times the investment in 5 years.
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Microsoft ISV with core competence in Subscription Management & Recuring Revenue based SMBs and Enterprise businesses.
As the Center of Excellence, with a strong reputation in the Microsoft Cloud Partner Programme and recognition in the Business Applications space, Bluefort offers strong expertise the Microsoft environment and product offering.
Bluefort provides access global expertise in a vast range of business areas, through strong strategic partnerships spanning some of the largest and best Microsoft partners.
Our Enterprise Solution framework highlights our deep expertise in recurring business models, including subscriptions, memberships, utilities, telecommunications, SaaS, and IT services.
Our products are flexible for any needs, from an SMB needing a scalable subscription financial management platform to a global enterprise seeking a Cloud ERP built for recurring and subscription businesses.
Microsoft Dynamics 365 stability for smart SaaS recurring revenue business.
Powerful, customer centric subscription fulfillment for eCommerce and retail.
Most subscription customers love control. Autonomy goes one step further, giving customers access to their subscriptions when they want it. Autonomy, in the form of self-serve portals, boosts customer satisfaction, while saving you time and resources. This article explores how it all works, and what you need to give customers the choice they want. In this article: What is Subscription Customer Autonomy? What Happens Without Subscription Customer Autonomy Why Don’t Subscription Retailers Give Their Customers the Option of Autonomy? Subscription Customer Autonomy- What’s In It For a Retailer? Customer Autonomy- What Do You Need To Give It? How to Get it All Done, Fast There’s no doubt about it - the retailers with the best customer experience tend to do better. This is especially true with subscription customers because they have a longer relationship instead of the interaction that comes from usual one-off purchases. One of the emerging trends in subscription retail is the idea of autonomy. That’s giving customers the power to manage their own subscriptions on the terms that suit them best. It’s one of the easiest ways to keep them happy. But many retailers don’t provide this level of experience. Whatever their reason for doing so, that’s good news for you. If your retail business offers autonomy, you’ll attract new customers from your competition. This article will explore all things autonomy, from what it involves, how it impacts customers and businesses, and what you will need as a subscription retailer to boost your customer success by giving them autonomy. What is Subscription Customer Autonomy? Autonomy is simply a high level of control that customers can enjoy over their subscriptions. This allows them to independently create subscriptions that best meet their needs at any given time. As a customer, when you walk into a shop or grocery store, you’re not generally looking for intervention. You know what you want, you grab your basket, get what you need, pay, and get out. It’s quick, and it’s done. Your customers might want the same experience. That doesn’t mean you never give any help, guidance, or intervention! But it’s up to them as the subscriber to decide, instead of you. So what aspects of the subscription package does autonomy cover? Renewals: When customers have control over when their subscriptions renew (instead of a surprise auto-renewal), this gives them time to financially plan and make any adjustments in subscription packages that meet their current budget. Add-ons and cross-sells: Customers’ needs change all the time. So do their wants. If they have to wait to be offered them, they might go somewhere else. But if they can access additional goodies 24-7, they’re far more likely to buy them. Payment terms: It’s a sensitive subject. Customers don’t want to be on hold before they discuss circumstances or situations. They also don’t want to have a nightmare paying for their subscriptions. They should be able to decide and change terms like payment frequency and enjoy flexibility like skipping a payment if it’s needed. Pausing: Customers love the pause option. And why not- life is unpredictable. Circumstances, needs, and decision-makers change. Letting customers put everything on pause without losing out on their goods and usage stops them from churning to a competitor that offers them exactly what they need. Timing: It’s common for a retailer with more limited resources to make customers wait until someone from customer service or sales can get on the phone with them to talk through options. That’s not sustainable long-term, especially if your customer lives far away. People need to be able to get what they need in the time that they have. Packaging: Sometimes customers want something different. If they notice new packages, new products, or new pricing, they might find it more desirable. Making them wait till the end of a contract (especially in the case of them paying more than a different plan would require) makes them vulnerable to churn. Options show the customer that you’re here to meet their needs. It also builds loyalty and trust. What happens to retailers who can’t or won’t give customers what they want? What Happens Without Subscription Customer Autonomy? There are undeniable impacts when customers have no autonomy over their subscriptions. Here are some of the most common we’ve seen in our customers before they got help: Churn: A subscription retailer’s worst enemy. Churn rate is already high, so anything that makes it worse can leave you very vulnerable. When customers feel stuck in a plan that costs too much, is a pain, or doesn’t meet their needs they get frustrated and leave. Why would they stay if competitors offer control and flexibility? Bad brand reputation: Guarding a reputation is important. Customers will tell their friends, family, and people on reviews or message boards about any inflexibility and control issues your brand has. It can be hard to get a good reputation back. Missed revenue opportunities: When customers can buy what they want when they want it, they’re far more likely to…buy. And not go to your competition. If they have to wait, or can’t get what they want, that’s a missed opportunity for more money coming in. More resources and delays: When customers must wait for your business to help them with their contracts, that means your teams have to give their time. That’s less time for something else. It can also burden teams and create a backlog filled with delays. You’re saddled with higher operational costs, long wait times, and frustrated workers and customers. All these factors can damage a business. Suffering more than one can put your business’ health at risk. And the saddest thing is that in all this, the customer likely wanted to stay. The circumstances just made it too difficult, inconvenient, or expensive. This begs one big question… Why Don’t Subscription Retailers Give Their Customers the Option of Autonomy? Most of the time, retailers who deny their subscription customers autonomy don’t do it just for the sake of it. There are often obstacles that get in the way. Creating a system that enables customer autonomy (especially the kind 24-7, and allows for changes in pricing, terms, etc.) must be efficient and reliable. After all, it connects all the teams from customer service, sales, finance, and fulfillment. Retailers could be worried about how that could cost them. And sometimes the customer is not always right. Retailers might have concerns that customers don’t know their own needs, or how upgrades and term changes work. If they make mistakes, that can cause a lot of trouble and disrupt service and revenue. Some retailers have outdated tech that would simply not allow for information integration between teams. It may not be sophisticated enough to enable the creation of customer portals. Upgrades might seem time-consuming and disruptive, which could make a retail business struggle even more. Of course, sometimes decision-makers in the retail business might simply fear change. Autonomy goes again the way it’s been done. It might need a cultural shift. It might be hard to implement. And the last reason we see frequently is a simple lack of knowledge of autonomy. Retailers might not be aware of the existence or importance of autonomy and just rely on customer service to do all the heavy lifting. They also might not understand its impacts. Fortunately, all these problems aren’t permanent. Retailers just need to know what they have to gain from customer autonomy. Subscription Customer Autonomy - What’s In It For a Retailer? Now you know what it can cost you to not give your subscription customers a level of autonomy. But what do you have to gain? Cut costs: When customers take care of subscription management admin themselves, that means fewer queries for customer service to have to handle. No chasing answers from sales or finance. That means lower operational costs, and your teams are free to concentrate on higher-value work. Better customer loyalty: When customers trust you (and vice versa), they feel more empowered. They keep control, avoid nasty surprises and charges, and know that you’re on their side. They’re far more likely to stay, which cuts churn. More money coming in: Customers who can change, add to, or upgrade their subscriptions themselves are far more likely to buy them because they can. When you add flexible payments and methods that suit their needs, you have a lot more inbound revenue that you wouldn’t have otherwise. Better brand position and reputation: Most subscription retailers do not offer customer autonomy. That means you’ll have an automotive advantage because you’re giving customers choice, power, and trust. And that can only benefit your brand reputation and positioning as you attract new customers and strengthen your existing customer relationship. Everyone wins. Happier staff: Once your subscription customers have the power to manage their subscriptions, that takes so much pressure off your teams. They have fewer routine tasks. They don’t have the pressure of a stack of repetitive messages asking for information. That means they can focus more on what they love - the high-value work they were hired to do in the first place. If these benefits sound tempting to you, where do you as a subscription retailer begin? Customer Autonomy - What Do You Need To Give It? To successfully offer customer autonomy, subscription retailers need to implement several key components: Create a navigation-friendly interface: Customers can only experience and enjoy autonomy with a site that’s logical and easy to navigate. This means your site needs to be accessible, with clear instructions and intuitive dashboards. Dedicate a self-service portal: Self-service portals are the way to go. They allow for adjustments, changes, payment methods, upgrading, downgrading, and product viewing history. Special bonuses for automated offers that are plugged into their needs. Secure and reliable payments: Customers need to know that payments are secure and incorporate the payment method that works best for them. When you provide flexibility in subscription pricing, fees, and payments, you’ll keep them on-side. Support where and when they need it: Of course, when customers experience autonomy, they still might need a little support. They might have a question that needs to be answered. That’s why real-time support including bot-driven chats, videos, FAQs, etc. can help answer questions and give guidance before there’s an issue. Personalization: This is absolutely essential for subscription customers. Your customers expect it, and many of your competitors offer it. Personalization shapes an excellent customer experience. Your business can then make specific recommendations and offers, as well as give a tailored CX that suits individual needs. Your customers feel valued, and are more likely to boost their upgrades, add-ons, and cross-sells. You might be thinking, “These are great, but my resources are already stretched. How can I deliver what the customer wants, when I don’t have the time or resources to do it?” Fortunately, there’s something that can do it all for you. How to Get it All Done, Fast There’s no point in pushing yourself and your people to the limit if you don’t have to. Not when there’s a solution that does everything for you. The right automated subscription software can bring you the platform you need to give your subscription customers the autonomy they want. And it cuts down on your overheads while boosting revenue while delivering MORE than just customer autonomy. In other words, you get bonus goodness. It can automate tasks like: Managing the self-service portal including automatically adjusting customer subscription changes in packaging, pricing, terms, etc. Creating a real-time free flow of information between customer service, finance, sales, and marketing so nothing gets lost between the cracks. Cuts delays in information (no more chasing!) Invoice creation, reminders, etc. With no more human errors. Creating personalized offerings and pricing plans, offering them at the right time Spotting when customers are at risk of leaving Payment collection and ledger reconciliation Adherence to compliance issues and regulations Think of how much time and effort automating these tasks would save you and your teams. You get lower operational costs. You get more revenue coming in. And the best bit is that this platform scales. You can grow as fast as you want, with no additional burden on your business. Conclusion The bottom line is that automation is not just about giving the customer the autonomy they want. It’s giving you back your time, cutting your costs, and positioning your business in the best place possible. Don’t risk keeping your customers in a place where they leave, unsatisfied. Be known and rewarded for giving them what they want. Have any more questions? Book a free Discovery Call with our team today.
Customers love retail subscriptions. But subscriptions are only popular when they offer the prices that customers want. This article is an in-depth look at the appeal of subscriptions to retailers, subscription pricing models, and how personalization can help retailers give their customers the packages they want. It also reveals the best kind of technology that delivers all the ingredients needed to get subscriptions right. In this article: Subscriptions in Retail - Why Do People Love Them? Types of Pricing Models Where Bad Decisions Hit the Hardest Plot Twist - A Personalized Pricing Model is the Way One Solution for Everything Retail subscriptions are extremely popular with customers. But only if the price is right. There’s a lot of pressure to choose the best pricing models for the subscriptions. Make the wrong decision, and you could lose customers (and revenue) for good. But the right pricing strategy will keep the customers you have, attract new ones, and boost your profits. If you’re a retailer with subscription plans or you are considering offering subscriptions, read on to discover what kinds of pricing will work for you, and how you can enjoy the benefits the best pricing models can bring your business. Subscriptions in Retail - Why Do People Love Them? When done right, customers and retail businesses love subscriptions. Here’s why: Convenience: Subscriptions give consumers an easy way to get products they want and need when they need it. No more repeat purchasing decisions. No more inconvenient trips to the store. Customer loyalty: Subscriptions require a long-term retailer/customer relationship. There’s ample opportunity to build loyalty to your brand and cut churn. Differentiation: Subscription differentiate your brand from competitors by giving your customers a unique experience. Predictable revenue: One-off purchases give no stability. However a steady and predictable revenue stream provides a great foundation for better financial planning and stability. Subscription businesses have grown 4.6 times faster over the past decade compared to the S&P 500. (SaaS) sector outperformed other SEI sectors in between 2022-2023, with 12.3% revenue growth on average. Subscriptions work across most retail sectors. Even for retail businesses that have large, single-purchase products (like cars, boats, industrial farm equipment, etc.) retailers have found creative ways to incorporate subscriptions, including regular parts and servicing and add-on complimentary products. But no matter how creative the subscription offering, there’s one thing more important. Pricing. What type of pricing options does a retailer have? Types of Pricing Models There are plenty of choices that retailers can consider for their subscription service pricing: Fixed: This is the most common model. It involves offering a set price for each subscription over a certain time period. Though it’s easy to understand, it might not meet the needs of every customer. Usage-Based: Meant more for subscriptions involving consumption (like broadband or royalty-free music), this model charges customers based on their product usage. This generally works best for customers who have fairly consistent consumption rates. Tiered: This variety of pricing levels depends on which level of products and services appeal most to the customer. They choose a plan that suits their needs. The only drawback is that the terms of each plan can be more complex. Freemium: Subscription customers get a standard service of basics for free, and if they’re ready for more, they get premium features at a cost. Though this model attracts a wider customer base (which is great for general brand awareness), it can be challenging to convert them to paying users. Dynamic: Subscription prices change depending on availability, demand, etc. This is another model that can be more complex. It can be difficult to figure out which one is right for both the retailer and the customer. But manually choosing to price risks mistakes. There are so many variables to keep track of. It’s really not a place for guesswork. How is it possible to figure out the optimal price points that boost profitability and please customers? How long does it take to figure out whether your customers like your pricing? What happens when circumstances change and prices must be adjusted? How do you keep your sales team motivated when pricing models are wrong or have to change? On top of that, manually adjusting and updating the pricing and terms for each customer in your base is time-consuming and steals your labor resources. And when the pricing’s wrong, churn and missed opportunities get costly. The good news is that there’s one pricing model factor that doesn’t go wrong. Plot Twist - A Personalized Pricing Model is the Way Personalization can make any pricing model a lot more appealing. Customers both love and expect personalization across their experience, starting with pricing. This involves subscription plans tailored to incorporate their wants, needs, buying behavior, demographics, and segment. Personalized plans are hassle-free because they’re easy to understand. They save the customer from choice blindness. They offer value for money because the combination reflects who they are as a customer. Personalization works across the pricing models too. Here are some examples of how it could work: Tiered - A beauty subscription box company could base their tiers on past purchasing and preferences. A customer who primarily buys skincare could be offered a tier that includes premium and new, cutting-edge products. Usage-Based - Not only would a customer receive offers based on their usage patterns, but they could be offered exclusive product sessions or discounts for loyalty. Freemium - A software company could send a customer targeted promotions that complement how they use specific free features, enabling them to unlock a unique combination of advanced tools that meet their needs. Flat Rate - A meal kit delivery service could offer personalized add-ons based on the customer’s preferences, like special ingredients, or free desserts, or bonus portions for their favorite meals. Personalization makes a difference because it shows customers that the business pays attention to them and their needs. And they back that up with action. Now, this might sound great to you. But it also begs the question, “How do I get all of this done?” One solution can handle everything for you - the pricing model choices, the keeping track of subscriptions and terms, any last-minute changes, add-ons and upgrades, and all the personalization needed. One Solution for Everything It’s simply robust subscription management software. That’s all you need. It automates these tasks: Powered by AI, all customer data (including purchase history, behavior, demographics, location, and preferences) is tracked and analyzed in real-time. AI breaks it into segments, microsegments, and individuals so that each can be reached and nurtured throughout the entire lifetime of the relationship. On top of that, it spots and creates selling opportunities including renewals, add-ons, upgrades, and cross-selling. It tracks subscription term dates. It can create new offerings that complement customer needs and usage too. And it channels them at the right time. This brings in additional revenue that may have been missed otherwise. The solution offers automated responsiveness that makes pricing models flexible and agile to anticipate/react to changes in circumstances. It also collects and analyzes customer feedback to refine and improve pricing strategies over time. The right solution doesn’t just easily bring in subscription revenue. It saves countless hours and costs as well. It knocks down silos between marketing, sales, and finance, removing the hours wasted between teams chasing information on customers, products, usage, and contract terms. It automates the entire invoicing and payment process. That includes everything from billing cycles, payments, invoicing (without human errors), payment reminders, payment collection, and reconciliation. This includes automatically recognizing revenue. The data and analysis created the reports needed for audits, compliance (no matter where the location of your customers) and the most informed strategic financial decisions. It monitors performance and KPIs to make recommendations for change too. And it consolidates inventory management systems so that everything works together. Scaling isn’t a problem - no matter how fast you grow your customer base, operations automatically keep ticking away. Retailers that choose good solutions get all the benefits of the right subscription pricing models while saving time and resources. At Last, A Complex Solution Made Simple Important decisions are usually harder to make. However, the right software solution will make both the decision and implementation easier. All what’s left is a happy customer base and a reliable new revenue stream. Curious to see what the right solution could do for your retail business? Book a free Discovery Call with our team today.
Retailers used to running physical stores can miss opportunities to sell and expand their business with E-Commerce. This article talks through the limitations of bricks-and-mortar, how E-Commerce can boost your business, and where to find the best retail E-Commerce help. In this article: Why Bricks and Mortar Isn't Enough for Retailers Anymore What E-Commerce Can Give Your Business How the Right Solution Can Crush Obstacles Easily The Impact of Bad Decisions on Subscription Retail SMBs The Secret to Good Decisions Is In Plain Sight AI-Driven Insights: How They Give You Everything You Need A well-designed brick-and-mortar retail space can bring a lot of joy. But it isn’t enough. Not these days. They’re not enough to meet the demands of modern customers or to expand your consumer base. If you want to expand, grow, and make your mark, it's important to consider offering online shopping. But as a retailer, adding an e-commerce strand and creating an online store might feel completely overwhelming. Where do you begin? We’re here to reassure you that the shift is not as daunting as you may think. You just need good information and the right tools to start bringing in all the benefits that e-commerce delivers. Why Bricks and Mortar Isn't Enough for Retailers Anymore Bricks-and-mortar stores do provide a shopping experience that many customers love. Around 94% of customers still shop in physical stores. However, the exclusive brick-and-mortar store does have real limitations. Reach: You’re stuck with customers in your general geographic location, which means you cut your business off from the global market. At least 52% of shoppers shop internationally. Costs: Physical stores demand high overhead costs, including everything from rent, heating/AC, security, staff, etc. rent, utilities, etc. 6 in 10 experts say an online store is cheaper to start, and 8 out of 10 says it’s cheaper to run, with 75% saying bricks and mortar doesn’t break even as quickly. Consumer Behavior and Preference: It’s a fact that online shopping grows each year. Online retail sales around the world have dramatically risen from $1.3 trillion in 2014 to $4.4 trillion in 2023, and by 2027, it’s expected to hit $8 trillion, accounting for nearly a quarter of total retail sales. Expanding your bricks and mortar store through E-Commerce will help you stay competitive. If you stay bricks-and-mortar only, you risk losing out to your competition because they will meet the customers where they are. What E-Commerce Can Give Your Business There are plenty of potential benefits of an online store. Here are a few of the most popular: Increased Reach and Accessibility - Not only will your brand be able to reach that global audience, but your products will be more accessible. And because your online store can run 24-7, your customers can buy what they want, when they want it. Scalability: You might be used to having to hire extra help to deal with much more seasonal demand, and those costs can add up. But growing your base (both temporarily and long-term) doesn’t necessarily stretch your resources in the same way. Most of the process is automated, and online fulfillment isn’t as costly as it is in-person (unless you're selling massive products, like ships). Customer Insights: It can be difficult, if not impossible, to get in-person customers to fill out surveys and give feedback. But online, this comes without any effort. You get detailed and valuable analytics from your customer data. This helps you understand what they like and their behavior much more. Personalization: Not only does data give you information on segments and opportunities, but you can personalize shopping experiences for your customers. This boosts conversion rates and meets expectations while boosting your revenue by up to 40%. These benefits are extremely tempting; every retailer could use each one of them. Of course, creating an online store can feel daunting. There are important factors that a retailer has to consider. A website has to be created (or expanded to accommodate E-Commerce). The site must contain an intuitive and user-friendly interface. It needs data and financial security for compliance and safety. Mobile optimization creates a great customer experience on the go. A rock-solid secure payment process brings you your cash. Stock management is a little different too. Because customers can purchase your products at any time, stock levels can change frequently. This can require real-time updates. Fulfillment and delivery logistics have to be fast and efficient. Rather than the 9-5 (or whatever your hours), customer service has to expand to 24-7 availability. Returns and exchange policies should be clear and easy for both parties. At first glance, it sounds like a massive effort. But it doesn’t have to be. Not with the right solution. How the Right Solution Can Crush Obstacles Easily When you get the right software, things get a lot easier. In fact, once the right solution is in place, you’re mostly to find you have more time to focus on the things you want to do. Like interacting with customers, thinking about the future of your brand, and creating the best strategies moving forward. It's the stuff you don’t have time to do because you’re stuck in permanent admin. You might be wondering how that’s possible, but software can ease not only the creation of an e-commerce strand, but it can take care of the obstacles for you: Financial management: Everything from correct billing to automated payments (using the payment platforms that customers love), reconciliation, reports, and audit preparation can be a cinch that saves lots of money and time. It also ensures a hassle-free experience for you and your customers. Inventory: Real-time inventory tracking that perfectly suits 24-7 shopping will help you avoid the dreaded stockouts and overstocks, which saves you money and customer alienation while protecting you from emergency supplier exploitation. Customer Relationship Management (CRM): These systems give you invaluable insight into your existing and potential customers by crunching the data. You’ll discover customer behavior across regions and countries, pricing variations, segmentation, product/add-on recommendations, and everything else you need to offer that personalized experience they expect and love. Security: It can bring you robust security measures, including legal compliance (no matter which region you sell in) including SSL certificates, and PCI compliance. Everything that protects customer data and builds trust. Conclusion A retail brand needs everything possible to build and differentiate its brand. Expanding from bricks and mortar to E-Commerce via an online store can give you the best of both worlds. All you need is the right solution to help you do it. Curious about how a solution could put you on the right path? Book a free Discovery Call with our team today.
Most subscription customers love control. Autonomy goes one step further, giving customers access to their subscriptions when they want it. Autonomy, in the form of self-serve portals, boosts customer satisfaction, while saving you time and resources. This article explores how it all works, and what you need to give customers the choice they want. In this article: What is Subscription Customer Autonomy? What Happens Without Subscription Customer Autonomy Why Don’t Subscription Retailers Give Their Customers the Option of Autonomy? Subscription Customer Autonomy- What’s In It For a Retailer? Customer Autonomy- What Do You Need To Give It? How to Get it All Done, Fast There’s no doubt about it - the retailers with the best customer experience tend to do better. This is especially true with subscription customers because they have a longer relationship instead of the interaction that comes from usual one-off purchases. One of the emerging trends in subscription retail is the idea of autonomy. That’s giving customers the power to manage their own subscriptions on the terms that suit them best. It’s one of the easiest ways to keep them happy. But many retailers don’t provide this level of experience. Whatever their reason for doing so, that’s good news for you. If your retail business offers autonomy, you’ll attract new customers from your competition. This article will explore all things autonomy, from what it involves, how it impacts customers and businesses, and what you will need as a subscription retailer to boost your customer success by giving them autonomy. What is Subscription Customer Autonomy? Autonomy is simply a high level of control that customers can enjoy over their subscriptions. This allows them to independently create subscriptions that best meet their needs at any given time. As a customer, when you walk into a shop or grocery store, you’re not generally looking for intervention. You know what you want, you grab your basket, get what you need, pay, and get out. It’s quick, and it’s done. Your customers might want the same experience. That doesn’t mean you never give any help, guidance, or intervention! But it’s up to them as the subscriber to decide, instead of you. So what aspects of the subscription package does autonomy cover? Renewals: When customers have control over when their subscriptions renew (instead of a surprise auto-renewal), this gives them time to financially plan and make any adjustments in subscription packages that meet their current budget. Add-ons and cross-sells: Customers’ needs change all the time. So do their wants. If they have to wait to be offered them, they might go somewhere else. But if they can access additional goodies 24-7, they’re far more likely to buy them. Payment terms: It’s a sensitive subject. Customers don’t want to be on hold before they discuss circumstances or situations. They also don’t want to have a nightmare paying for their subscriptions. They should be able to decide and change terms like payment frequency and enjoy flexibility like skipping a payment if it’s needed. Pausing: Customers love the pause option. And why not- life is unpredictable. Circumstances, needs, and decision-makers change. Letting customers put everything on pause without losing out on their goods and usage stops them from churning to a competitor that offers them exactly what they need. Timing: It’s common for a retailer with more limited resources to make customers wait until someone from customer service or sales can get on the phone with them to talk through options. That’s not sustainable long-term, especially if your customer lives far away. People need to be able to get what they need in the time that they have. Packaging: Sometimes customers want something different. If they notice new packages, new products, or new pricing, they might find it more desirable. Making them wait till the end of a contract (especially in the case of them paying more than a different plan would require) makes them vulnerable to churn. Options show the customer that you’re here to meet their needs. It also builds loyalty and trust. What happens to retailers who can’t or won’t give customers what they want? What Happens Without Subscription Customer Autonomy? There are undeniable impacts when customers have no autonomy over their subscriptions. Here are some of the most common we’ve seen in our customers before they got help: Churn: A subscription retailer’s worst enemy. Churn rate is already high, so anything that makes it worse can leave you very vulnerable. When customers feel stuck in a plan that costs too much, is a pain, or doesn’t meet their needs they get frustrated and leave. Why would they stay if competitors offer control and flexibility? Bad brand reputation: Guarding a reputation is important. Customers will tell their friends, family, and people on reviews or message boards about any inflexibility and control issues your brand has. It can be hard to get a good reputation back. Missed revenue opportunities: When customers can buy what they want when they want it, they’re far more likely to…buy. And not go to your competition. If they have to wait, or can’t get what they want, that’s a missed opportunity for more money coming in. More resources and delays: When customers must wait for your business to help them with their contracts, that means your teams have to give their time. That’s less time for something else. It can also burden teams and create a backlog filled with delays. You’re saddled with higher operational costs, long wait times, and frustrated workers and customers. All these factors can damage a business. Suffering more than one can put your business’ health at risk. And the saddest thing is that in all this, the customer likely wanted to stay. The circumstances just made it too difficult, inconvenient, or expensive. This begs one big question… Why Don’t Subscription Retailers Give Their Customers the Option of Autonomy? Most of the time, retailers who deny their subscription customers autonomy don’t do it just for the sake of it. There are often obstacles that get in the way. Creating a system that enables customer autonomy (especially the kind 24-7, and allows for changes in pricing, terms, etc.) must be efficient and reliable. After all, it connects all the teams from customer service, sales, finance, and fulfillment. Retailers could be worried about how that could cost them. And sometimes the customer is not always right. Retailers might have concerns that customers don’t know their own needs, or how upgrades and term changes work. If they make mistakes, that can cause a lot of trouble and disrupt service and revenue. Some retailers have outdated tech that would simply not allow for information integration between teams. It may not be sophisticated enough to enable the creation of customer portals. Upgrades might seem time-consuming and disruptive, which could make a retail business struggle even more. Of course, sometimes decision-makers in the retail business might simply fear change. Autonomy goes again the way it’s been done. It might need a cultural shift. It might be hard to implement. And the last reason we see frequently is a simple lack of knowledge of autonomy. Retailers might not be aware of the existence or importance of autonomy and just rely on customer service to do all the heavy lifting. They also might not understand its impacts. Fortunately, all these problems aren’t permanent. Retailers just need to know what they have to gain from customer autonomy. Subscription Customer Autonomy - What’s In It For a Retailer? Now you know what it can cost you to not give your subscription customers a level of autonomy. But what do you have to gain? Cut costs: When customers take care of subscription management admin themselves, that means fewer queries for customer service to have to handle. No chasing answers from sales or finance. That means lower operational costs, and your teams are free to concentrate on higher-value work. Better customer loyalty: When customers trust you (and vice versa), they feel more empowered. They keep control, avoid nasty surprises and charges, and know that you’re on their side. They’re far more likely to stay, which cuts churn. More money coming in: Customers who can change, add to, or upgrade their subscriptions themselves are far more likely to buy them because they can. When you add flexible payments and methods that suit their needs, you have a lot more inbound revenue that you wouldn’t have otherwise. Better brand position and reputation: Most subscription retailers do not offer customer autonomy. That means you’ll have an automotive advantage because you’re giving customers choice, power, and trust. And that can only benefit your brand reputation and positioning as you attract new customers and strengthen your existing customer relationship. Everyone wins. Happier staff: Once your subscription customers have the power to manage their subscriptions, that takes so much pressure off your teams. They have fewer routine tasks. They don’t have the pressure of a stack of repetitive messages asking for information. That means they can focus more on what they love - the high-value work they were hired to do in the first place. If these benefits sound tempting to you, where do you as a subscription retailer begin? Customer Autonomy - What Do You Need To Give It? To successfully offer customer autonomy, subscription retailers need to implement several key components: Create a navigation-friendly interface: Customers can only experience and enjoy autonomy with a site that’s logical and easy to navigate. This means your site needs to be accessible, with clear instructions and intuitive dashboards. Dedicate a self-service portal: Self-service portals are the way to go. They allow for adjustments, changes, payment methods, upgrading, downgrading, and product viewing history. Special bonuses for automated offers that are plugged into their needs. Secure and reliable payments: Customers need to know that payments are secure and incorporate the payment method that works best for them. When you provide flexibility in subscription pricing, fees, and payments, you’ll keep them on-side. Support where and when they need it: Of course, when customers experience autonomy, they still might need a little support. They might have a question that needs to be answered. That’s why real-time support including bot-driven chats, videos, FAQs, etc. can help answer questions and give guidance before there’s an issue. Personalization: This is absolutely essential for subscription customers. Your customers expect it, and many of your competitors offer it. Personalization shapes an excellent customer experience. Your business can then make specific recommendations and offers, as well as give a tailored CX that suits individual needs. Your customers feel valued, and are more likely to boost their upgrades, add-ons, and cross-sells. You might be thinking, “These are great, but my resources are already stretched. How can I deliver what the customer wants, when I don’t have the time or resources to do it?” Fortunately, there’s something that can do it all for you. How to Get it All Done, Fast There’s no point in pushing yourself and your people to the limit if you don’t have to. Not when there’s a solution that does everything for you. The right automated subscription software can bring you the platform you need to give your subscription customers the autonomy they want. And it cuts down on your overheads while boosting revenue while delivering MORE than just customer autonomy. In other words, you get bonus goodness. It can automate tasks like: Managing the self-service portal including automatically adjusting customer subscription changes in packaging, pricing, terms, etc. Creating a real-time free flow of information between customer service, finance, sales, and marketing so nothing gets lost between the cracks. Cuts delays in information (no more chasing!) Invoice creation, reminders, etc. With no more human errors. Creating personalized offerings and pricing plans, offering them at the right time Spotting when customers are at risk of leaving Payment collection and ledger reconciliation Adherence to compliance issues and regulations Think of how much time and effort automating these tasks would save you and your teams. You get lower operational costs. You get more revenue coming in. And the best bit is that this platform scales. You can grow as fast as you want, with no additional burden on your business. Conclusion The bottom line is that automation is not just about giving the customer the autonomy they want. It’s giving you back your time, cutting your costs, and positioning your business in the best place possible. Don’t risk keeping your customers in a place where they leave, unsatisfied. Be known and rewarded for giving them what they want. Have any more questions? Book a free Discovery Call with our team today.
Customers love retail subscriptions. But subscriptions are only popular when they offer the prices that customers want. This article is an in-depth look at the appeal of subscriptions to retailers, subscription pricing models, and how personalization can help retailers give their customers the packages they want. It also reveals the best kind of technology that delivers all the ingredients needed to get subscriptions right. In this article: Subscriptions in Retail - Why Do People Love Them? Types of Pricing Models Where Bad Decisions Hit the Hardest Plot Twist - A Personalized Pricing Model is the Way One Solution for Everything Retail subscriptions are extremely popular with customers. But only if the price is right. There’s a lot of pressure to choose the best pricing models for the subscriptions. Make the wrong decision, and you could lose customers (and revenue) for good. But the right pricing strategy will keep the customers you have, attract new ones, and boost your profits. If you’re a retailer with subscription plans or you are considering offering subscriptions, read on to discover what kinds of pricing will work for you, and how you can enjoy the benefits the best pricing models can bring your business. Subscriptions in Retail - Why Do People Love Them? When done right, customers and retail businesses love subscriptions. Here’s why: Convenience: Subscriptions give consumers an easy way to get products they want and need when they need it. No more repeat purchasing decisions. No more inconvenient trips to the store. Customer loyalty: Subscriptions require a long-term retailer/customer relationship. There’s ample opportunity to build loyalty to your brand and cut churn. Differentiation: Subscription differentiate your brand from competitors by giving your customers a unique experience. Predictable revenue: One-off purchases give no stability. However a steady and predictable revenue stream provides a great foundation for better financial planning and stability. Subscription businesses have grown 4.6 times faster over the past decade compared to the S&P 500. (SaaS) sector outperformed other SEI sectors in between 2022-2023, with 12.3% revenue growth on average. Subscriptions work across most retail sectors. Even for retail businesses that have large, single-purchase products (like cars, boats, industrial farm equipment, etc.) retailers have found creative ways to incorporate subscriptions, including regular parts and servicing and add-on complimentary products. But no matter how creative the subscription offering, there’s one thing more important. Pricing. What type of pricing options does a retailer have? Types of Pricing Models There are plenty of choices that retailers can consider for their subscription service pricing: Fixed: This is the most common model. It involves offering a set price for each subscription over a certain time period. Though it’s easy to understand, it might not meet the needs of every customer. Usage-Based: Meant more for subscriptions involving consumption (like broadband or royalty-free music), this model charges customers based on their product usage. This generally works best for customers who have fairly consistent consumption rates. Tiered: This variety of pricing levels depends on which level of products and services appeal most to the customer. They choose a plan that suits their needs. The only drawback is that the terms of each plan can be more complex. Freemium: Subscription customers get a standard service of basics for free, and if they’re ready for more, they get premium features at a cost. Though this model attracts a wider customer base (which is great for general brand awareness), it can be challenging to convert them to paying users. Dynamic: Subscription prices change depending on availability, demand, etc. This is another model that can be more complex. It can be difficult to figure out which one is right for both the retailer and the customer. But manually choosing to price risks mistakes. There are so many variables to keep track of. It’s really not a place for guesswork. How is it possible to figure out the optimal price points that boost profitability and please customers? How long does it take to figure out whether your customers like your pricing? What happens when circumstances change and prices must be adjusted? How do you keep your sales team motivated when pricing models are wrong or have to change? On top of that, manually adjusting and updating the pricing and terms for each customer in your base is time-consuming and steals your labor resources. And when the pricing’s wrong, churn and missed opportunities get costly. The good news is that there’s one pricing model factor that doesn’t go wrong. Plot Twist - A Personalized Pricing Model is the Way Personalization can make any pricing model a lot more appealing. Customers both love and expect personalization across their experience, starting with pricing. This involves subscription plans tailored to incorporate their wants, needs, buying behavior, demographics, and segment. Personalized plans are hassle-free because they’re easy to understand. They save the customer from choice blindness. They offer value for money because the combination reflects who they are as a customer. Personalization works across the pricing models too. Here are some examples of how it could work: Tiered - A beauty subscription box company could base their tiers on past purchasing and preferences. A customer who primarily buys skincare could be offered a tier that includes premium and new, cutting-edge products. Usage-Based - Not only would a customer receive offers based on their usage patterns, but they could be offered exclusive product sessions or discounts for loyalty. Freemium - A software company could send a customer targeted promotions that complement how they use specific free features, enabling them to unlock a unique combination of advanced tools that meet their needs. Flat Rate - A meal kit delivery service could offer personalized add-ons based on the customer’s preferences, like special ingredients, or free desserts, or bonus portions for their favorite meals. Personalization makes a difference because it shows customers that the business pays attention to them and their needs. And they back that up with action. Now, this might sound great to you. But it also begs the question, “How do I get all of this done?” One solution can handle everything for you - the pricing model choices, the keeping track of subscriptions and terms, any last-minute changes, add-ons and upgrades, and all the personalization needed. One Solution for Everything It’s simply robust subscription management software. That’s all you need. It automates these tasks: Powered by AI, all customer data (including purchase history, behavior, demographics, location, and preferences) is tracked and analyzed in real-time. AI breaks it into segments, microsegments, and individuals so that each can be reached and nurtured throughout the entire lifetime of the relationship. On top of that, it spots and creates selling opportunities including renewals, add-ons, upgrades, and cross-selling. It tracks subscription term dates. It can create new offerings that complement customer needs and usage too. And it channels them at the right time. This brings in additional revenue that may have been missed otherwise. The solution offers automated responsiveness that makes pricing models flexible and agile to anticipate/react to changes in circumstances. It also collects and analyzes customer feedback to refine and improve pricing strategies over time. The right solution doesn’t just easily bring in subscription revenue. It saves countless hours and costs as well. It knocks down silos between marketing, sales, and finance, removing the hours wasted between teams chasing information on customers, products, usage, and contract terms. It automates the entire invoicing and payment process. That includes everything from billing cycles, payments, invoicing (without human errors), payment reminders, payment collection, and reconciliation. This includes automatically recognizing revenue. The data and analysis created the reports needed for audits, compliance (no matter where the location of your customers) and the most informed strategic financial decisions. It monitors performance and KPIs to make recommendations for change too. And it consolidates inventory management systems so that everything works together. Scaling isn’t a problem - no matter how fast you grow your customer base, operations automatically keep ticking away. Retailers that choose good solutions get all the benefits of the right subscription pricing models while saving time and resources. At Last, A Complex Solution Made Simple Important decisions are usually harder to make. However, the right software solution will make both the decision and implementation easier. All what’s left is a happy customer base and a reliable new revenue stream. Curious to see what the right solution could do for your retail business? Book a free Discovery Call with our team today.
Retailers used to running physical stores can miss opportunities to sell and expand their business with E-Commerce. This article talks through the limitations of bricks-and-mortar, how E-Commerce can boost your business, and where to find the best retail E-Commerce help. In this article: Why Bricks and Mortar Isn't Enough for Retailers Anymore What E-Commerce Can Give Your Business How the Right Solution Can Crush Obstacles Easily The Impact of Bad Decisions on Subscription Retail SMBs The Secret to Good Decisions Is In Plain Sight AI-Driven Insights: How They Give You Everything You Need A well-designed brick-and-mortar retail space can bring a lot of joy. But it isn’t enough. Not these days. They’re not enough to meet the demands of modern customers or to expand your consumer base. If you want to expand, grow, and make your mark, it's important to consider offering online shopping. But as a retailer, adding an e-commerce strand and creating an online store might feel completely overwhelming. Where do you begin? We’re here to reassure you that the shift is not as daunting as you may think. You just need good information and the right tools to start bringing in all the benefits that e-commerce delivers. Why Bricks and Mortar Isn't Enough for Retailers Anymore Bricks-and-mortar stores do provide a shopping experience that many customers love. Around 94% of customers still shop in physical stores. However, the exclusive brick-and-mortar store does have real limitations. Reach: You’re stuck with customers in your general geographic location, which means you cut your business off from the global market. At least 52% of shoppers shop internationally. Costs: Physical stores demand high overhead costs, including everything from rent, heating/AC, security, staff, etc. rent, utilities, etc. 6 in 10 experts say an online store is cheaper to start, and 8 out of 10 says it’s cheaper to run, with 75% saying bricks and mortar doesn’t break even as quickly. Consumer Behavior and Preference: It’s a fact that online shopping grows each year. Online retail sales around the world have dramatically risen from $1.3 trillion in 2014 to $4.4 trillion in 2023, and by 2027, it’s expected to hit $8 trillion, accounting for nearly a quarter of total retail sales. Expanding your bricks and mortar store through E-Commerce will help you stay competitive. If you stay bricks-and-mortar only, you risk losing out to your competition because they will meet the customers where they are. What E-Commerce Can Give Your Business There are plenty of potential benefits of an online store. Here are a few of the most popular: Increased Reach and Accessibility - Not only will your brand be able to reach that global audience, but your products will be more accessible. And because your online store can run 24-7, your customers can buy what they want, when they want it. Scalability: You might be used to having to hire extra help to deal with much more seasonal demand, and those costs can add up. But growing your base (both temporarily and long-term) doesn’t necessarily stretch your resources in the same way. Most of the process is automated, and online fulfillment isn’t as costly as it is in-person (unless you're selling massive products, like ships). Customer Insights: It can be difficult, if not impossible, to get in-person customers to fill out surveys and give feedback. But online, this comes without any effort. You get detailed and valuable analytics from your customer data. This helps you understand what they like and their behavior much more. Personalization: Not only does data give you information on segments and opportunities, but you can personalize shopping experiences for your customers. This boosts conversion rates and meets expectations while boosting your revenue by up to 40%. These benefits are extremely tempting; every retailer could use each one of them. Of course, creating an online store can feel daunting. There are important factors that a retailer has to consider. A website has to be created (or expanded to accommodate E-Commerce). The site must contain an intuitive and user-friendly interface. It needs data and financial security for compliance and safety. Mobile optimization creates a great customer experience on the go. A rock-solid secure payment process brings you your cash. Stock management is a little different too. Because customers can purchase your products at any time, stock levels can change frequently. This can require real-time updates. Fulfillment and delivery logistics have to be fast and efficient. Rather than the 9-5 (or whatever your hours), customer service has to expand to 24-7 availability. Returns and exchange policies should be clear and easy for both parties. At first glance, it sounds like a massive effort. But it doesn’t have to be. Not with the right solution. How the Right Solution Can Crush Obstacles Easily When you get the right software, things get a lot easier. In fact, once the right solution is in place, you’re mostly to find you have more time to focus on the things you want to do. Like interacting with customers, thinking about the future of your brand, and creating the best strategies moving forward. It's the stuff you don’t have time to do because you’re stuck in permanent admin. You might be wondering how that’s possible, but software can ease not only the creation of an e-commerce strand, but it can take care of the obstacles for you: Financial management: Everything from correct billing to automated payments (using the payment platforms that customers love), reconciliation, reports, and audit preparation can be a cinch that saves lots of money and time. It also ensures a hassle-free experience for you and your customers. Inventory: Real-time inventory tracking that perfectly suits 24-7 shopping will help you avoid the dreaded stockouts and overstocks, which saves you money and customer alienation while protecting you from emergency supplier exploitation. Customer Relationship Management (CRM): These systems give you invaluable insight into your existing and potential customers by crunching the data. You’ll discover customer behavior across regions and countries, pricing variations, segmentation, product/add-on recommendations, and everything else you need to offer that personalized experience they expect and love. Security: It can bring you robust security measures, including legal compliance (no matter which region you sell in) including SSL certificates, and PCI compliance. Everything that protects customer data and builds trust. Conclusion A retail brand needs everything possible to build and differentiate its brand. Expanding from bricks and mortar to E-Commerce via an online store can give you the best of both worlds. All you need is the right solution to help you do it. Curious about how a solution could put you on the right path? Book a free Discovery Call with our team today.
Bluefort is the Microsoft Cloud Partner and Authority with core competence in Subscription Management and Recurring Revenue automation for SMBs and Enterprise Business.
