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Waterloo: Enhancing Subscription’s Customer Service and Billing Since 1815
02.06.2023
Subscription Management
The man never imagined when he sat down with strawberries for breakfast that the world was going to break apart.
It was June 1815. He was Marshal Grouchy, and he and his troops were supposed to have picked off the Prussians. But he didn’t, and now his ally Napoleon was 20 miles away, fighting for his life against the armies of the Seventh Coalition, at Wavre.
And though Napoleon was at first successful at defending attacks, as we all know, he eventually failed against Wellington soon after at Waterloo.
The thing is, he didn’t have to fail.
Because of a series of vague or incorrect intel and misunderstood orders between Napoleon’s unit and Grouchy’s, Marshal Grouchy and his supporting forces were delayed.
So they had no idea that Napoleon’s forces were forced to fight without backup. In fact, Grouchy didn’t even know there was a battle that day – until he heard the actual battle going on.
Disaster.
This mistake allowed the Prussians to join up with Wellington’s British forces and start the beginning of the end for the French Army.
The point is that success requires excellent communication between collaborators.
And the same thing goes with subscription management.
Okay, you probably just raised your eyebrow. You’re thinking there’s a chasm of difference between 19th century continental military disasters and SaaS subscription businesses.
But hear us out.
If your teams don’t communicate well, your business can blow up spectacularly. So this history lesson serves as a warning for subscription management. (We’re sure that’s what Grouchy had in mind all along).
In a lot of subscription businesses, billing and customer service information and teams are siloed. This risks all the pitfalls of disjointed billing and customer service.
And there are many pitfalls. Incorrect invoices. Billing disputes. Customer service reps who don’t understand the billing process. A billing team that might not be up on discounts, renewals, upsells and cross-sells. And maybe a sales team that’s way too busy to keep up with everything as well.
But if there’s one thing that subscription customers don’t like in a provider, it’s mistake after mistake. That’s the basis of customer churn.
High churn rates not only decimate your revenue but also damage your company’s reputation, making it hard, if not impossible, to bring new customers.
And teams are stuck dealing with recurring issues instead of innovating and taking the company forward.
Whether failure comes slow or fast, it’s hard to stop or recover.
So why put your business in that position a second longer than you have to?
Strategies for Victory
To tear those silos down and make sure that info flows between teams again, companies must take a strategic approach.
Here are some things that can help:
- Clear and Concise Billing Information: Easy-to-understand invoices that include info like subscription plans, billing cycles, and payment methods can prevent billing disputes and reduce the burden on both customer service teams and accounts.
- Training: Arm customer service staff, sales, and billing with the know-how of subscription billing and management processes. This means that all teams will know what is expected of them and what to expect from the others. This means more efficient subscriber query and problem resolution. No more putting a customer on hold hoping to find the answer!
- Proactive Support: When teams openly communicate, they can anticipate and address potential customer pain points before they escalate or even begin. For example, send reminder emails before subscription renewals or offer assistance with account changes.
Best Practices for Killer Results
A coordinated approach for billing, sales and customer service teams includes these practices:
- Regularly review and update billing processes using feedback and insight from all teams to make sure they stay accurate and user-friendly.
- Keep clear channels between billing and customer service departments, relying on continual collaboration and information-sharing.
- Implement a centralized subscription management system to streamline processes and provide real-time data access to both teams.
The easiest way to put this into action?
Enter the LISA Solution: A United Front for Subscription Management
You might feel overwhelmed by the very idea of these suggestions. But you might have also felt exactly like Grouchy and watched with horror at the consequence of missed communication.
The good news is that you don’t have to make these changes alone. Not at all.
Bluefort’s LISA product suite is here to align your billing and customer service teams, transforming the subscription experience for them and your customers.
LISA’s platform not only automates subscription billing and management processes (which is a revelation in itself), but it’s specifically designed to make it easy for teams to collaborate.
Key features of LISA include:
- End-to-End Automation: LISA automates your entire-end-to-end process from invoicing to renewals which reduces mistakes AND keeps up with subscription sales and offerings.
- Digital Capabilities: Your billing, sales, and customer service teams can access real-time data and analytics when they need it. This means they can make informed decisions and handle any customer issues fast.
- Ease of Use: LISA simplifies the subscription management process, freeing up your teams’ time so they can coordinate their efforts and provide a seamless customer experience.
By learning from Grouchy and Napoleon, we can recognize the importance of coordination and communication in achieving success.
Uniting billing and customer service teams will change your subscription management experience. It will make your teams far more happy and far less stressed.
It will increase your customer satisfaction, and foster long-term loyalty.
With these strategies in place, you’ll never have to watch your world crumble at breakfast over a bowl of strawberries.
Let’s chat further.
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06.12.2024
Automation
Empowering Recurring Service Workers: The Impact of Real-Time Information Flow
Information is power. And this is particularly true for the recurring service industry, because workers need the right details to do their job. Without it, a recurring service company has to contend with delays, mistakes, unhappy customers, churn, and job dissatisfaction. These problems have a knock-on effect for the business in both the short and long-term. Fortunately, an operations system that promotes the free flow of information across teams in real time empowers service workers. It streamlines resource allocation and revolutionizes both operations and results. In this article: Why the Lack of Information Makes Service Workers’ Jobs Hard How It Hurts You As a Recurring Service Business What Real-Time Information Flow Brings to Service Workers The Extra Benefits You Get Recurring service workers need accurate instructions on where, when, how, and what they’re supposed to do. The problem is that many recurring services companies don’t give them what they need to delivery a service. So how can they do their job correctly? The short answer is they can’t. And that can have a massive impact on the bottom line of a recurring brand. But providing all the information necessary is a mammoth task if your operations are manual. This article will discuss the problems that come with the lack of free-flowing information. It will analyze how these problems impact your workers and your business. It will then give a good picture of what is needed to turn things around, smoothing out service provision and improving the bottom line for your business. Why the Lack of Information Makes Service Workers’ Jobs Hard Recurring service workers have jobs that require information to be correct and available. This includes things like contracts, terms, and usage. Recurring services companies that use manual processes will have fleets that struggle to deliver consistent, reliable services. In these circumstances, here are the ongoing pain points they contend with on a daily basis: Silos everywhere: When there’s little or no information sync between the financial, sales, customer service, and other teams, the chances of the information going through being correct and timely plummet. Delays aplenty: Thanks to both the manual recording of data and the manual retrieval of information, the data’s delayed, and so is service delivery and decision-making. Bottlenecks in the day: Manually created workflows (especially combined with the delayed and incorrect info) impede service workers' productivity and service quality. This makes bottlenecks that can put them hours or days behind. Mistakes in delivering service: Any outdated data (which can occur at any time with siloed data) leads to costly mistakes in service provision. Resource misallocation: Without reliable information, and with bottlenecks, effective resource allocation becomes impossible. Plunging worker morale: Frustration from manual processes, delays, and lack of access to real-time data, and mistakes in resource allocation can lead to decreased job satisfaction and motivation. All of these throw a monkey wrench into your operations and revenue while both disappointing and infuriating your workers. And these problems will impact your business as a whole as well. How It Hurts You As a Recurring Service Business These problems can spread across anywhere in your recurring service organization. Do any of these impacts sound familiar to you? Higher cost and less incoming revenue: Inefficient operations cut into revenue at any given time because you have to spend more to get results. It also cuts future revenue, because you have continual delays in service onboarding, contract processing, etc. Resource allocation: This is one of the most important challenges in recurring service. You can’t allocate your resources properly when there are delays and data silos that stop information flow. Because manual operations mean phone calls with suppliers. Sales and customer service teams phoning customers putting out fires. Finance checking with sales and customer service about contracts and terms so they can set things up and approve installation. And these scenarios are just for starters. Expensive worker turnover: Employees in burnout or employees who quit are expensive. Either way, it’s most costs for you as you look for replacements who will face the same challenges. Customer dissatisfaction: Customers need consistency in their service quality from installation all the way through the lifetime of your relationship. Without it, customers get unhappy. They rumble. They complain to your customer service department. You’re forced to offer benefits and discounts that you wouldn’t have had to before. Less cash flow: Because inaccurate invoicing, billing discrepancies and delayed payments slows down inbound revenue, you’ll get cash flow issues, and perhaps creditor and supplier issues too. That adds more pressure to workflows to find the money from somewhere else. Churn: There are multiple reasons why you’ll have more churn, and not just because of the problems directly related to your service team. Word of bad service gets out. You competition will notice you’re losing customers. If your base catches wind you’re having service delivery and operations problems, that damages trust in your brand. It also harms your relationships with your customers which drives up customer acquisition and cuts Customer Lifetime Value costs. Given these harms, it’s no wonder that original problem of lack of the free-flow of information poses such a threat. Fortunately, with the right information flow, things can look up, and fast. The solution comes in the form of subscription management platform that analyses and shares data in real time. It brings all the benefits of real-time information, with zero additional effort from you and your workers. In fact, you’ll save them time and resources. What Real-Time Information Flow Brings to Service Workers Subscription management software eliminates data silos so that all the information about your customers, their needs, their contracts and terms, and usage are readily available, anytime, and all the time. It’s accurate and free from manual errors too. This information is available to you, your sales team, customer service, finance, fleet management, and anyone else in your operations who need it. Real-time information flow transforms how service workers operate within recurring service businesses. They get real-time access to important data, which includes usage, changes in contract terms, offerings, and service schedules, preferences, inventory/supplies, etc. This helps them with any decision-making they’ve got along the way. When data flows in real time across the service-related departments, service workers know where they are supposed to go, when, and for what. Management becomes more…manageable because the free-flow of data also gives them bonuses - proactive issue resolution, predictive maintenance, and personalized customer interactions. Workflows are nicer too, because they’re not based on errors or guesses. Which all means…satisfied service workers with a much less stressful day-to-day schedule. And that’s not all… The Extra Benefits You Get Just like the lack of data flow causes knock-on impacts for you and the greater business, so does free-flowing information. Here’s how things turn around for the greatest business and brand beyond your happy service workers: Your customers get an exceptional experience: Everything from fast responses to personalized services right down to the service delivery and invoicing/payments, everything’s customized end-to-end for them. That creates loyalty and cuts churn in general. Siloes are cut down, and communication is better between all teams: Real-time data that is automatically and freely shared means that numbers are more reliable, forecasting more accurate, and reports are great foundations for strategic decisions. All people can collaborate more effectively because no one has to chase or guess anything. Resource allocation is optimized: It won’t just be your service team that loves this free flow of information. When your scheduling is efficient, your maintenance planned, and your resources utilized in the best way, you cut costs and boost efficiency. More revenue growth: With proactive service management and the best billing and payment processes that are automatically run for you by a good solution, revenue grows because you don’t have costly errors. Your teams aren’t throwing out expensive discounts to keep customers with later service on side. You aren’t replacing your burned out service workers. You’re not waiting for payments. And word of mouth works in your favour between customers. Long story short, you get the competitive edge. Conclusion Real time information flow isn’t just a tech upgrade. It’s a necessary investment in the contentment of your service workers, and the future revenue growth of your business. The efficiency and effectiveness of service workers will play a pivotal role in any recurring service business. They just need the tools necessary to their jobs. Going with the right subscription management solution will solve these problems and bring so much more to the table. Curious to see how it will work for you? Book a free Discovery Call with our team today.
03.12.2024
Customer Insight
The Psychology Behind Successful Recurring Services Brands: How to Win Their Minds (and Hearts!)
Recurring services have an untapped free resource that could help them build lasting customer relationships and drive growth. The resource? Psychology. It gives insights into customer behavior which is the key to understanding how to build trust, communicate with impact, and grasp customer behavior. This article covers multiple strategies a recurring service-offering business can use to leverage psychology to better meet their customer base’s needs while enhancing customer satisfaction, retention, and a competitive edge. In this article: What Links Understanding Customer Behavior to Success Building Trust and Credibility: The Pillars of Customer Relationships Starting a Referral Program Knowing the Customer Understanding what people want and why they do the things they do is the most valuable thing a business can know. This is especially true for recurring services, which rely on long-term relationships and continual customer satisfaction. If you are a business that offers recurring services, you know that building those long-lasting relationships with your customers drives sustained growth. Appreciating why your customers need what they need and make the decisions that they do will be a game changer. In this article, we’ll dip our toes into the pool of consumer psychology, and then have a look at some of the strategies that successful recurring services brands use to boost their customer relationships. What Links Understanding Customer Behavior to Success A successful recurring brand will put consumer behavior front and center. Consumer behavior guides a business to know things like: what products and services they should sell when they should sell them what customers like and dislike how they like to be communicated with In essence, it shows how to make customers happy. 86% of buyers will pay more for a great CX. -Price Waterhouse Coopers 80% of organizations expect to compete based on CX. -Gartner When a recurring service jumps into the world of psychology, they are better equipped to create and tailor offerings to meet the needs and demands of their target market. Creating segments and personas that are based on demographic and psychographic data further helps by personalizing how they service and communicate with the customers. Building Trust and Credibility: The Pillars of Customer Relationships Who wants to give their business to a company that can’t be trusted? Trust is extremely important in the recurring services industry because brands have an ongoing purchase-involving relationship with customers. Trust forms the bedrock of successful customer relationships. When customers feel appreciated, listened to, and told the truth, their trust builds. And that trust is needed to keep building a customer base. Knowing the Customer What steps can a company take to build that trust? Researching and acting on how and why customers do what they do has a positive impact on everything from pricing strategies to leveraging loss aversion to shaping product and service offerings. Here are some of the most popular options: 1. Use FOMO and Social Proof to Drive Conversions Both social proof and Fear of Missing Out can boost conversions and loyalty. Social proof capitalizes on a customer’s likelihood to look at the way others behave to influence their decisions. If a customer is uncertain about your brand or recurring service, they would find the experiences of others useful when making their own decision. It’s why businesses put testimonials on their website and write case studies. It’s also why customers check reviews before they buy things. Similarly, FOMO takes advantage of the fear of missing out on a rare opportunity which may never happen again. It’s an emotional trigger that can inspire a customer to act fast, especially true for the 70% of Millennials who experience it. Everything that falls under these two factors including testimonials, reviews, timers, pop-ups for one-off flash sales, user-generated content, and endorsements on social media boost the confidence of potential customers. They also encourage action. 2. Bring in Gamification for Engagement and Retention Gamification in the User Experience makes things a lot more fun. Competition and achievement tap into the brain’s rewards systems and gives a good hit dopamine to add fun, Their sense of accomplishment encourages engagement and keeps them coming back for more. They’re motivated to stay active, check out the different features you want to highlight, and work for set goals. It’s a win-win situation - you expand your base and Customer Lifetime Value, and your customers associate your brand with fun. 3. Show Reciprocity in the Personalized Experience That old saying “You scratch my back, I’ll scratch yours” is a popular phrase for a good reason. As customers we like to know a business isn’t taking advantage of us. We need to feel appreciated and seen. This is especially important online, where so many financial interactions are faceless. Reciprocity, or giving something in return, is a great way to meet this expectation. There’s so much variety in how you can show reciprocity! There are personalized gestures that can be created for any individual including: discounts loyalty schemes public shout-outs Features on the website surprise gifts or handwritten notes All of them can trigger a feeling of appreciation and uniqueness, which deepens your connection. Customers who feel valued will stay and continue their recurring purchases. They’re also far more likely to tell others about it! 4. Leverage Personalized Email and Marketing Strategies Marketing teams equipped with the customer data and insights they need to drive marketing have a huge advantage. They have the power to build relationships with all their customer segments through personalized messaging for each group and individual customer. And what’s more, they know the best times to deliver those targeted messages, offerings, and campaigns. 76% of customers are more likely to buy from brands that use personalization. Personalization can bring companies up to 40% more revenue. -McKinsey Personalized marketing brings both existing and potential customers content that is compelling, because it’s tailored for their specific situations. Whether it’s to educate, entertain, or to build relationships with the brand, customers will find it useful. And that nurtures relationships over time, driving revenue growth and a better Customer Lifetime Value. These are all impactful strategies that can boost your customer satisfaction and lifetime value. But there’s a slight snag. They will take up time and resources from your teams. Unless you use a solution that does everything for you, freeing up that time and resources. Where Help Comes From There is a comprehensive, automated solution that boosts customer experience by using psychology-focused strategies so that you get all the benefits but need less time and resources diverted from your teams. Imagine one platform that does everything for you. It pulls together all your legacy data, and streamlines all data trapped in silos, sharing it in real-time. That data forms the basis of an agile knowledge bank that knows your customers, their behaviour, their needs, their segments, what your competition is doing, the best pricing models, and insights and reports that is available at any time. On top of that, automation uses all that information for its processed actions. Everything from: Product offerings Coordinating customer feedback and testimonials Individualized pricing and add-on combinations Determining the best offers for each customer Marketing like email funnels designed to guide an individual customer journey Identifying the best times for a FOMO promotion Boost transparency with clear communication about pricing, usage and maintenance, contract terms, etc. Tracking the impact of all these actions And so much more. It leverages psychology for you, making your impact with your customers so much stronger. And it makes your employees so much happier, because they’re not stuck doing repetitive, time-consuming work. Instead, they’re taking these customer insights and creating a more compelling customer experience for new and existing customers. Conclusion Understanding the psychology behind customers and how they interact with brands enables a recurring service provider to drive up engagement, conversion, loyalty, and long-term revenue. It gives a strong advantage over competitors too. Curious to see how fast you could benefit? Book a free Discovery Call with our team today.
28.11.2024
Automation
3 Tiny and Proven Changes Your Subscription Brand Can Make for CLV and Long-term Growth
Growth is where it’s at. But it can be elusive and hard to hold on to. It can also be expensive. This article explores three small changes that subscription-offering businesses can make to boost their CLV and long-term growth. The strategies bring bonus benefits as well including strengthened customer relationships, cut churn, payment failure prevention, and boosted word-of-mouth marketing. In this article: Offer a Subscription Pause Option Letting Customers Pay the Way They Want Starting a Referral Program In business, it’s not very often that something easy to do has a big impact on something important. And in the subscription industry, it can feel as though everything that’s necessary for growth is a massive drain on time and resources. Marketing campaigns. Product development. Demos. Onboarding. Customer service. Invoicing. So here’s a little good news. Not everything requires months of logistical planning, consultants, and a slush fund. There are three tiny changes you can make that can have a massive impact on your revenue and growth over the long term, strengthening your market position. Let’s get right into it! 1. Offer a Subscription Pause Option A subscription pause option simply allows your subscribers to pause your service without cancelling the subscription. This can be for any reason - they might have other temporary priorities, money might be tight, or they may have to re-evaluate their usage and figure out which add-ons and services work better for them. Subscription companies might feel ambivalent about a pause option because it sounds like a gateway to cancellation. It feels counter intuitive to growth. But it has the opposite effect. You’re far more likely to keep them as long-term customers because it creates trust. Why it Matters in the Subscription Arena: When you give subscribers a pause option, you’re telling them you understand them. That they have differing needs and circumstances. That you would rather have them on board as satisfied customers, over raking in the monthly fee. It also shows that you understand that they don’t want to lose their account and their data - you’re not forcing them to make the impossible choice of “we can’t keep up, so we’ll have to cancel everything.” It’s up to you to define what a pause means and how it works: Limited or no access to the subscription? How long can they pause it for? How often can they pause it? All that is needed is a tunnel – a point of occasional contact that ensures you keep them onside throughout the pause. The pause option boosts customer long-term satisfaction by giving them the flexibility and sense of control that they want. You might take a temporary financial hit, but you cut your churn and enjoy a much stronger relationship with your customers for the long term. And that will pay in dividends. 2. Letting Customers Pay the Way They Want Letting customers pay in the way that works best for them will make them happier and more likely to pay on time, every time. There is no financial benefit to making customers jump through hoops to pay for their subscriptions. There are far too many competitors out there, who have no problem offering customers exactly what they want. And when payments are more time-consuming to make, obstacles get in the way. Then payments are forgotten and fall through the cracks. Then you’re stuck wasting precious time chasing tons of payments. You’ll suffer revenue leakage as well. That gets expensive if you have thousands or hundreds or thousands of subscribers. On the other hand, accommodating preferred payment methods gets logistically difficult. Often you content with multiple billing cycles, currencies, and regulations, stretched around the world. Accommodating preferred payment methods might not look like a tiny change. But with the right tool, making this change is easier than your current payment system currently. Why it Matters in the Subscription Arena It’s important to cater as much as possible to subscription customers because it’s so easy for them to leave and go straight to your competition. In the subscription industry, there’s nothing more important than a good Customer Lifetime Value. And keeping customers with you and paying will contribute to your CLV. Here’s how costly not providing easy payments can be for you: How many hours a week do you spend chasing payments? How much is your teams’ time worth, versus the size of these payments? How much do you lose annually due to payment failures? What’s the churn rate for customers who experience failed payments disruption? What’s the long-term cost over 10 years? The costs of not accommodating preferred payments can be astronomical. And that’s revenue and time loss that could have been invested or put toward innovation, development, growth, etc. 3. Starting a Referral Program We’re all use word-of-mouth. We listen to other people’s opinions. And whether we have good or bad experiences with a subscription, we talk about it. A referral program leverages the power of word-of-mouth by incentivising your subscribers to refer new customers to you in exchange for benefits, rewards, and discounts. With the right benefits, happy subscribers turn into brand advocates. Given how much people trust recommendations from family and friends, that advocacy is like gold dust. 92% of consumers trust personal referrals. And people are 400% more likely to buy when referred. (Nielsen) Referred customers have a 16% higher CLV. (Harvard Business Review) Why it Matters in the Subscription Arena: It’s the ultimate marketing plan that you don’t have to plan or find the right words for. The right referral plans boost customer retention because rewards keep customers on side. Referral programs are extremely important in the subscription space for customer acquisition. Acquisition is often one of the biggest and most expensive challenges that a subscription business has. But when existing customers are brand advocates, they attract new subscribers for you. And those new subscribers are also far more likely to be long-term customers. Why struggle to do something that others can do for you easily? When you leverage the customer base you already have, you broaden your base, and lower customer acquisition costs. There’s nothing set in stone about which benefits your referral program needs to include. But the rewards should be exclusive to the referral plan only. That locks in the incentive. Conclusion Sometimes it’s the little decisions that make all the difference. Whether you decide to offer a pause, broaden payment options, and/or start a simple referring program you have a lot of potential to boost everything from Lifetime Value, retention, and revenue, while cutting significant costs like acquisition and leakage. These subtle adjustments can help you as a subscription business position your brand for long-term revenue and customer base growth, and success. If you’re curious about an all-in-one subscription management software package that implements and automates all these changes for you, why not get in touch? Book a free Discovery Call with our team today.
19.11.2024
Subscription Management
The YES! Factor: The Secret to Subscription Box Delivery Success
When done right, subscription boxes can bring customers a lot of joy. But there are a lot of things that can go wrong, jeopardizing a customer’s relationship with the brand. This article talks about how automation can sort out the biggest challenges to smooth delivery success, enhancing the customer experience and boosting revenue and brand competitiveness. In this article: The Havoc of Missed and Late Deliveries Technology to the Rescue It’s All About Growth If you’re a box subscription customer, you know what it’s like to get that box on your doorstep. They’re little curated collections of goodness, just for you. It can be like Christmas, minus the huge cost, argumentative family members, and the big mess to clean up afterward. That’s why we as subscription customers love our boxes. They’re fun. Unless they’re late, or worse, they’re not what we expected at all. If you’re on the other side of the subscription box, working tirelessly to source and process products, then deliver them on time, you’re caught in a logistical challenge. Spending countless hours on spreadsheets. Chasing after suppliers. Double-checking delivery schedules. And dreading customer disappointment. The Havoc of Missed and Late Deliveries If you want to keep customers, you’ve got to turn their disappointment into a YES every time you have a point of contact. Churn in the subscription box industry is high. One big cause of churn is delivery problems. No matter what the cause, you have to deal with the financial consequences. Technology to the Rescue Fortunately, you can turn things around, easily. You just need the right tool. And that’s automation. It’s like having an invisible assistant who doesn’t need to take a break or ever go home. Automation does all the stuff you hate to do including managing orders, tracking shipments, and updating customers. Specifically, it brings your business advantages like: Fulfillment thanks to a comprehensive inventory management system Great inventory management runs end-to-end, from suppliers to fulfillment. The best solutions offer real-time visibility into your stock levels, supplier lead times, and customer demand patterns. It can anticipate shortages and adjust if stock levels don’t meet demand. It can adjust product selections (even when customers make last-minute changes) and it ensures that every box is packed with the right goods and shipped on schedule. Customer knowledge driven by AI-driven analytics Analytics transform data into actionable insights. The right system looks at your customers’ behavior, purchase history, trends, and seasonality to accurately predict future preferences. With this foresight, you can customize how customers experience your website. And you can offer personalized product selections and pricing. Subscribers love a personalized experience - it matters when a business offers things that they love! Streamlined operations and cut costs Automation handles the worst, time-consuming, soul-sapping repetitive tasks easily: Sorting customer inquiries Managing subscriptions Creating sales opportunities including add-ons and upgrades Invoicing and payments Optimizing delivery routes Not only does that save you time and money, but you’ll be free to focus on high-value work like development and strategy. Less stress thanks to real-time tracking Customers love to know where their packages are. Real-time tracking means customers don’t have to worry about the whereabouts of their packages. And you’re spared the avalanche of worried messages and frustrated queries that come from uncertain customers. Clarity in recognizing revenue Automation makes revenue recognition an easy ask. All your revenues and expenses will be accurately allocated to the right periods, even if customers change their subscriptions. And you get real-time visibility into financial health whenever you need it. Less risk thanks to compliance Compliance isn’t just about revenue recognition. Automation brings you certainty about rules regarding consumer protection, data privacy, and selling across different regions and countries because it monitors everything relevant. The worry about fines, legal challenges, and reputational damage due to non-compliance becomes a thing of the past. You get the competitive advantage Automation brings your customers their subscription boxes on time. And it gives your business a leg up over your competitors who still do things manually. It’s All About Growth When you get the tools you need for delivery schedule management (and box subscription management in general) you give your business so much potential. Don’t put your business at risk by doing it manually. Be compliant. Recognize your revenue. Give your customers transparency. Streamline your operations. And reignite each customer’s love for your products every time that package arrives on their doorstep filled with what they want and on time. Give them the YES! Factor. Curious about how this could work for you? Book a free Discovery Call with our team today.
02.02.2024
SaaS
A Comprehensive Guide to Subscription Management
Cultivating Success: A Comprehensive Guide to Subscription Management for SaaS CEOs and CFOs In this guide: The Basics of Subscription Management Challenges in Subscription Management for SaaS Benefits of Efficient Subscription Management Subscription Management Best Practices Key Metrics for Subscription Management Integration of Subscription Management Tools Future Trends in Subscription Management What Bluefort Brings to the Table So you’re the CEO or the CFO of a SaaS company. You’ve been doing it a while, and your company has a brilliant product offering. Your customer base is growing. Things look pretty sweet, but there’s one thing that’s driving you crazy. A splinter in your finger. A fly in the ointment. It’s there, it’s annoying, and it’s not going anywhere. Subscription management. You might have winced at the thought of it. But in SaaS, it seems to be an inevitability. Though it can be tricky to sort out, when done right, subscriptions are a great way to bring in constant revenue. As a CEO or CFO, it's got too much potential to overlook. At its core, subscription management is just managing the lifecycle of an ongoing relationship with a customer or supplier, including everything from choosing the best pricing models, setting up accurate and reliable billing cycles, and - gulp- minimizing customer churn. But subscription management is nothing without an efficient framework because there’s no room for errors. The better you are at managing subscriptions, the more predictable your revenue, the more streamlined your operations, and the happier your customers. So let's do a deep dive into the world of subscription management and how it not only impacts your business but your role and performance as a leader in a SaaS company. I. The Basics of Subscription Management Before any problems can be solved, they must be understood. And like any kid who takes things apart knows, you have to break down those key components to see how it all works. With subscription management, the key components are subscription models, billing cycles, and pricing strategies. These are the foundation because each of these elements plays a critical role in shaping your customers' experience and your company's financial health. A. Key Types of SaaS Subscription Models There are options when it comes to types of models, and some companies like to offer combinations. Whichever way you go, they are important because they lure customers in and keep them coming back for more. There are three main SaaS subscription pricing models: Flat-rate Pricing: This is a fairly straight-up model - what you sign up for is exactly what you get. You charge a fixed price for your service, whether that’s mostly or annually. Though flat-rate is super easy, it doesn’t cater to different customer needs or varying usage levels. Usage-based Pricing: In this model, customers pay for your service according to how much or how little they use it. Though many customers prefer this because it’s both fair and flexible, it can lead to delays in billing and unpredictable revenue. Tiered Pricing: This is a complex model - you offer different pricing tiers based on the customer’s preferred features, usage, or number of users. Though this model is attractive to a lot of customers, it’s harder to manage. Some SaaS companies experiment or research to see which pricing works best for their customers. Some offer all of them or a combination. Either way, it can take a little time to figure out what fits comfortably. Next, let's look at the components of subscription management. B. Subscription Management Components From setting the billing cycles to determining the right pricing strategy and managing the customer lifecycle, each of these is crucial to get right so that you keep subscriptions running smoothly and keep those customers pleased and coming back for more. Billing Cycles Billing cycles are key - they determine how often your subscription customers will be charged, whether weekly, monthly, quarterly, or annually. Deciding which cycle is best really depends on your customers. Offering flexible billing cycles are mort likely to please more people and bring in more regular cash flow. Some customers prefer small and frequent payments, and some like whopping big chunks. The drawback is that when you have to manage multiple billing cycles, it burdens your subscription management process. It also makes revenue forecasting more difficult because the timing and the amounts of revenue are always in flux. Pricing Strategies It goes without saying that pricing strategies are extremely important to everyone involved. Pricing reflects the value your products provide but take into account things like competitor offering and pricing, market leverage, brand strength, and your development and operational costs. When a pricing strategy is well thought out, it’s a powerful tool to tempt and keep customers. And you can segment your pricing strategies to cater to your customer groups. Of course, it can be hard to figure out which prices will work best. And experimenting can be costly and waste of time. You need a deep understanding of your customers, competitors, and the market, and this understanding can only come from hard data. A lot is at stake - underpricing leaves money on the table, overpricing can send potential customers into the proverbial arms of your competition, and changing too fast is confusing and damaging to your reputation. Customer Lifecycle Management In the SaaS sphere, it’s far preferable to keep your customers than to try to gain new ones. That means a customer’s experience with your SaaS business must be consistently good and meet their needs. Otherwise, why would they stay? Retaining customers through customer lifecycle management demands you oversee everything from sign-up to renewal. This includes things like: onboarding providing ongoing customer support when it’s needed handling upgrades or downgrades disputes and billing managing renewals When customer lifecycle management is impactful, you can drive excellent customer satisfaction and retention. All that is required is a seamless onboarding experience, timely and effective support, and easy upgrades or downgrades (no pressure, right?). But all this requires a lot of investment of time and resources. It also requires knowing your customers’ fluctuating needs, what they prefer, what they use, and their behaviours at every stage of the lifecycle. These are the basics of what subscription management is. Though subscriptions can be your company’s best friend, they also bring big challenges that must be negotiated. II. Challenges in Subscription Management for SaaS No matter how brilliant a CEO or CFO you are, managing subscriptions is no walk in the park. And you're not just expected to navigate or eliminate these challenges, but to turn these problems into opportunities for growth. Each of these challenges can seem overwhelming, but start combining them together, and you can have a bit of a mess that makes your job a lot harder (don’t worry, we’ve got some solutions later on!). We work with a lot of subscription-based SaaS businesses, and these are the things that plagued them most: Operations There are a lot of plates to keep spinning in the subscription management cycle - from sales pitches all the way through to payment reconciliation and reporting. It takes up a lot of time and causes a lot of stress to keep up with. At worst, it can force you to be in damage-control mode, putting out fires and fixing mistakes. This can have a knock-on effect with other departments too. Revenue Recognition Complexities Consistently and completely recognizing revenue from subscriptions is a herculean task. You’ve got to know what you’re doing at all times with upfront payments, discounts, refunds, and cancellations, all while sticking to accounting best practices and standards. Churn Churn will always be a major concern for SaaS businesses. There is so much competition doing everything they can to lure your customers away. That’s why it’s crucial to strategize to cut churn down as much as possible and keep existing customers over a lifetime. Knowing your customer is key to this, but it’s an intensive research process with little room for error. Forecasting and Reporting Because so many subscriptions are recurring, and because churn can be so high, it can be very difficult to know where your revenue stands at any given time. This makes reports and forecasting needed for sound financial decisions nearly impossible. Regulatory Compliance Concerns Being on the wrong side of compliance can be an expensive nightmare that damages your reputation. But SaaS businesses have so many regulations to deal with across their business including data privacy, security, financial reporting, etc. Not only that, but regulations change, and they vary from region to region. Scalability All these problems are magnified the more you grow. Through time you’re handling a lot more complexity in managing multiple subscriptions, diverse pricing models, and varying billing cycles. And most likely you’re doing this on legacy systems. It’s quite a list. But these problems are not insurmountable. In fact, all of them are solvable. But for now, let’s have a look at everything you have to gain from an efficient subscription management system. III. Benefits of Efficient Subscription Management Though SaaS is complex and always in flux, there is one constant- the need for efficient subscription management. And when you get it right, it is worth it. And when it’s effective, it’s more than just keeping track of who is subscribed to what and for how long. It’s about leveraging these subscriptions to drive growth and improve customer experience. One of the best benefits of efficient subscription management is improved revenue visibility. Because, in a subscription model, revenue trickles in over time, making it hard to both track and predict. When you’ve got an efficient subscription management system in place, you’ll get the clarity you need in recurring revenue, which is part of monitoring your financial health and making good future decisions. Efficient subscription management isn’t just about numbers; it’s about people too. It can make your Customer Experience so much better because you can give both flexibility and convenience. They get accurate billing on time, clear communication, and choice. What customer would leave when they’re enjoying all this? Efficient subscription management can also streamline financial operations. Billing is a four-letter word in the SaaS world with its pricing models, discounts, offers, new products, usage, and billing cycles on top. But the right efficient systems that specifically target the end-to-end, frees up financial resources and tightens up operations. That’s how you get optimized performance. Lastly, efficient subscription management can offer regulatory compliance advantages. Though compliance can be a challenge, taking steps to tackle compliance benefits you. Providing robust security features, maintaining detailed records, and facilitating accurate reporting only strengthens your brand. Of course, to reap these benefits demands a well-designed system that takes into account both your business needs and market conditions. And that's where the best practices come in. IV. Subscription Management Best Practices What are the best practices that can take you toward efficient subscription management? Automated billing system It’s a fact- manual billing processes are time-wasting, error-prone, and not scalable. But automation streamlines everything including your billing process. It cuts down on mistakes. It feels up valuable time for strategic tasks. Subscription software that has been specifically built for this will handle all your tasks, from managing different pricing models and billing cycles to issuing invoices, tracking and processing payments, and reconciliation. At its best, it can offer you complete revenue recognition and provide you with accurate revenue numbers at any hour of the day. It can also automate renewals, preventing service interruptions and maintaining steady revenue flow. Moreover, subscription billing software can provide valuable insights into your billing data, helping you identify trends, spot issues, and make informed decisions. Flexible Pricing Strategies Adopting flexible pricing strategies is another great best practice. With all the competition out there, adopting flexible pricing strategies will give you a huge advantage. You’ll be able to meet diverse customer needs and preferences. Your flexible pricing strategies can include any of the pricing models, and add to that usage-based billing, which caters to your customer segments wherever they are and whatever they need. One caveat- your pricing strategies (especially if they offer usage billing) will need resources to make sure billing stays accurate and on time. Customer Retention Strategies It’s important to do what you can to cut down on churn- it’s a crucial aspect of subscription management. These strategies can include: personalized customer engagement offerings that meet their needs add-ons and cross-selling with their preferences in mind understanding your customers' needs and preferences tailoring your communication servicing accordingly It can also include proactive churn prevention, which involves identifying at-risk customers and taking steps to address their issues before they decide to leave. But even at those optimum levels, these best practices are not a one-size-fits-all solution. You’ll have to tailor them to your business, market conditions, and customer needs. V. Key Metrics for Subscription Management Key Performance Indicators (KPIs) are a wonder. They give you a snapshot of where your financial health and growth stand, which gives you the knowledge you need to adjust to make things better. So what are the metrics that will be most useful for you to know to guide your business strategies? 1. Monthly Recurring Revenue (MRR) This is one of the most important. MRR is the predictable revenue that your company expects to receive every month, to measure the stability of the company's revenue stream. It's calculated by multiplying the total number of paying customers by the average revenue per user (ARPU). When you know your MRR, you can track sales and churn over time, and make informed future-focused decisions. 2. Customer Lifetime Value (CLV) CLV is the total revenue your business can expect from a customer throughout your relationship. CLV is calculated by multiplying the average purchase value, the average purchase frequency rate, and the average customer lifespan. Improving CLV helps you plan your marketing and customer service efforts more efficiently so they can target high CLV segments to maximize your profitability. 3. Churn Rate This is the rate at which customers leave your subscription service within a year-long period. It helps you gauge customer loyalty. When you know your churn rate, you’ll be able to better spot problems with factors like your product quality, customer service, or pricing. It equips you to take proactive steps to stop churn, and serves as a progress monitor for customer retention and satisfaction. 4. Customer Acquisition Cost (CAC) CAC provides insight into the cost associated with convincing a potential customer to buy a product or service. It includes costs spent on marketing and sales efforts divided by the number of customers acquired in the period the money was spent. A high CAC can be a concern as it could mean lower profitability, especially if the CLV is not significantly higher. Companies should aim for a lower CAC, while simultaneously working on strategies to increase CLV, leading to increased profitability. Understanding these key metrics is just the first step. You also need the right subscription management software to do the problem-solving for you. But where to begin? VI. Integration of Subscription Management Tools It’s the integration of good subscription management tools that will make the biggest difference. These tools not only streamline your operations- but they also give you valuable insights that can push the growth of your business forward. Selecting the Right Subscription Management Software You might feel a little lost in picking the right software for you. Don’t worry, that’s common- after all, there’s a lot of choice out there! There will be essential features that you need to look out for: automated invoicing and billing flexible pricing options free-flowing information between sales and financial teams revenue tracking a variety of payment gateway support customer management capabilities financial reporting and forecasting data and analytics awareness of compliance requirements robust data privacy And it’s important to look out for software that is intuitive, easy to understand and operate by your team (and customers when applicable). And the software should provide great onboarding and customer service Considerations for SaaS Businesses For SaaS businesses have a special consideration to add on top: scalability. There’s no point in bringing in the bells and whistles if you still can’t keep up when you scale. Good software can handle a growing base and more, complex transactions. t should also integrate seamlessly with your existing systems and customer support tools, providing a unified platform for managing all aspects of your subscription business. Integration with Existing Systems With some software platforms, it is possible to integrate into your existing systems like CRM and accounting, and customer service tools. But one thing is important here: when you’re after the best result, you need to give subscription management software the best foundation. Choosing the best software for your system provides a more cohesive view of customer data. It also streamlines financial reporting and delivers the best customer service. Integrating with Customer Relationship Management (CRM) software will let you consolidate your legacy data. This gives you a 360 degree view of the history of your customers, their behavior, preferences, segmentation, needs, and and interactions. This enables you to offer the personalised experience that customers love. When the subscription management tool is compatible with your accounting software, you’ll get effortless financial reporting and tax management. You’ll get accurate insights into your company's financial health and help in strategic decision-making. Integrating your tools is an extremely impactful subscription management. There’s one last thing to consider when thinking about choosing subscription management software: what’s coming up in the near future. VII. Future Trends in Subscription Management You’re in SaaS, so you have a crystal-clear understanding of how important it is to stay ahead of the curve with a forward-thinking approach to everything. That means having a good idea of what lay ahead. Let's delve deeper into two big trends and how they will transform the future of subscription management. A. Artificial Intelligence in Subscription Analytics AI is poised to change everything in subscription management. Its ability to harvest, process and analyze vast amounts of data quickly and accurately opens up a whole world of possibility. The more we know about customer behavior, the better we can predict trends, and tailor product development to target their needs. That makes investment ROI go through the roof. But it’s not just helpful on the product side. One key area where AI stands out is in predicting customer churn. AI can look at behavior and usage, and flag up early warnings about customers who are likely to cancel their subscriptions. This lets you proactively engage with them, bringing them back into the fold before they leave. That’s a lot easier than trying to tempt them back after they’ve signed up for your competition. Furthermore, AI can also optimise your pricing strategies by analyzing factors like market trends, customer demand, and competitor pricing. Finally, AI gives you segmentation on steroids. It can use a lot more data points to really narrow down those segments which means you can give people the most customised offerings and experience possible. Boom- that’s more engagement and conversion for you. B. Personalized Subscription Experiences Building on AI, personalisation deserves its own focus too. Customers are extremely fickle. We know this because we’re customers too. We all understand how tempting it is to jump ship as soon as someone gives us a tempting offer- especially if we have no loyalty to the business we’re currently with. And that fickleness has forced SaaS companies to personalise the customer experience as a way to emotionally engage with them and increase the likelihood of them staying. And this has resulted in the highest rate of customer expectation ever. Personalization is rapidly becoming a non-negotiable element of any type of subscription. Customers want services that cater to their individual needs and preferences. And businesses can struggle to keep up without the right tools to offer things like: customized content and marketing tailored products pricing plans based on each subscriber's usage patterns soliciting and using feedback personal data for recommendations Businesses that offer a radically personalized experience will boost customer satisfaction and loyalty, improve retention rates, and increase their overall Customer Lifetime Value (CLV). VIII. What Bluefort Brings to the Table Bluefort has a globally proven end-to-end subscription management solution made specifically for your needs. Streamlining processes and leveraging automation is at the heart of what we do. It determines the best pricing models and spots the most effective upselling and cross-selling opportunities based on individual customer preferences and buying patterns. From onboarding new subscribers to managing renewals and handling tier upgrades, we’ve automated and simplified these tasks for optimal efficiency and precision. Billing is a pivotal aspect of the subscriber’s lifecycle, and we’ve got it covered. Our automated subscription billing ensures timely and accurate invoicing, while our integration with various payment gateways, including Stripe and GoCardless, offers both flexibility and security for all transactions. It crunches and analyses data to give you reports and forecasts, empowering you to make the best decisions. And - this will be music to your ears - it completes recognized revenue. You will be fully equipped to do the job you were hired to do. No more getting left out on the ledge, hanging on for dear life. How you fit into it We understand the tremendous pressure you’re under because our CEO and CFO have been there. You’re in charge of all your staff, the day-to-day of everything, the revenue, and the future health of the company. And you’re the one who must stand in front of a board or stakeholders and explain why things are the way they are. Even if it’s not your fault, the buck always starts with you. And the most frustrating thing about all this responsibility is that without the right tools to keep things running, you are stuck in a damage-control limbo. You can’t do any of the high-value strategies and tasks that you were hired to do. All the amazing and innovative ideas you were hired for? They’re stuck in an indefinite holding pattern. The whole situation is terrible for your blood pressure. It’s terrible for morale. And it’s terrible for your reputation. No one needs it. This is why the best subscription management software is the best option. Not only does it bring the benefit of reliable revenue streams and a broader customer base, but it gets your name out there. It shows the world (and your competitors) exactly what you have to offer. Software that integrates into your business, monitors those KPIs, and keeps your entire end-to-end subscription management ticking over for you will give you a huge advantage. You’re a SaaS business. You understand how essential cutting-edge technology is for success. Why not give yourself the same upper hand your products give your customers? You have nothing to lose except wasted time, resources, and customer churn. You can position your subscription business for driving the returns that your investors expect along with sustained success in the years to come. Say goodbye to manual sales processes and boost your growth with Bluefort's cutting-edge automation solutions. Learn how our end-to-end system streamlines the end-to-end process.
18.07.2023
Subscription Management
Embrace the Joy of Missing Out
How E-Commerce C-Suite Executives Can Revolutionize Their Business with Subscription Models Are you tired of the constant stress and challenges that come with your e-commerce model? There’s a solution that allows you to experience the Joy of Missing Out (JOMO) on all those problems that keep you up all night. In this article, we'll explore how a subscription model with subscription billing might be the solution you’re looking for. So we’ll do a deep-dive into the problems you face, what subscriptions have to offer you, and how there are solutions to the hesitations you might have about subscriptions. Why JOMO, Not FOMO? Before diving into the details, we wanted to focus on JOMO instead of the more common Fear of Missing Out (FOMO). It’s quite simply this - we like to offer solutions, not problems. We believe in showing you what you can be freed from and how amazing that can feel. By helping you embrace the joy of missing out on the problems associated with your current e-commerce model, you’ll be empowered to make informed choices that will benefit your business in the long run. Your Headaches As someone running an e-commerce business, do any of these sound familiar to you? Unpredictable revenue: Your business relies on one-time purchases, which makes revenue less stable and much harder to forecast. You might also struggle with pricing strategy. It’s stressful because unpredictability is not good for decision-making and long-term planning. Lower customer retention: Customer retention is a struggle because one-time purchases mean lower customer lifetime value and higher marketing costs. Difficulty in differentiating from competitors: In a crowded e-commerce space, it’s difficult to stand out from the competition. How do you offer a sense of exclusivity that brings and keeps customers? Inability to build a community around your brand: A sense of community is tough to build with one-off customers. This can limit your brand's growth because communities create word-of-mouth and brand advocacy. Struggling to maintain consistent cash flow: You handle inconsistent cash flow, which scuppers future investments and budget management. Vulnerability to seasonal fluctuations or economic downturns doesn’t help. Fortunately, you can be freed from all of these with the power of a subscription model with regular billing, whether you fully switch or do a hybrid model. Subscriptions bring you the joy of missing out on your problems. Bluefort's end-to-end solution, helps you address all your subscription management challenges, through the power of automation. Benefits of Subscription Billing Besides the amazing feeling that missing out on those challenges can give you, let’s look at the individual benefits that your e-commerce business can enjoy from a subscription billing model. Predictable revenue: Subscription models generate recurring revenue, giving you a stable and predictable cash flow. This means you can make better decisions about investments, growth, and resource allocation. Improved customer support and customer retention: Customers are more likely to stay loyal when they’ve invested in a recurring service and have an ongoing relationship with the business. This means lower customer acquisition costs and the added bonus of free word-of-mouth marketing. Increased customer lifetime value: You can take a good customer ROI and kick it up a notch further by enjoying a higher customer lifetime value. Focus on customer retention and satisfaction and you’ll watch your revenue grow while missing out on the stress of chasing short-term sales. Tailored offerings for your customers: You can create and offer the personalised experiences that customers demand. They’ll love you for it and you get an advantage over the competition. Win-win! Easier upselling and cross-selling opportunities: When you offer subscriptions, you already have a captive audience that’s engaged with your brand. So it’s easier for you to introduce new products or services and upsell or cross-sell to your existing base. Your e-commerce business can be more resilient, customer-focused, and profitable. So, why wait? The Importance of a Subscription Billing Strategy A subscription model needs a solid subscription billing strategy. It’s not just a smart move – it's essential for long-term success. That requires a solid strategy that not only helps you optimize pricing and increase customer retention, but also improves cash flow and fosters stronger relationships with your customers. Optimizing pricing - One of the most critical aspects of your subscription billing strategy is determining the right pricing for your offerings. By investing time and effort into researching your target audience and testing different pricing structures, you can find the sweet spot between affordability and profitability. Everyone’s happy with the right price. Reducing churn and increasing retention - Who likes to see their hard-earned subscribers walk away? You reduce customer churn by consistently delivering value and addressing any issues that may arise. That means more revenue. Improving cash flow - A well-planned subscription billing strategy delivers recurring revenue. It’s easier to budget, invest in growth, and allocate resources. Enhancing customer experience - A well-crafted subscription billing strategy makes sure customers get an excellent user experience. This keeps them engaged but also encourages them to spread the word. Gaining a competitive edge - The strategy should differentiate you from competitors and position your brand as a leader in your industry. Key Considerations for a Successful Subscription Model Of course, you can’t just snap your fingers and WHAM, you’ve got the subscription model churning away. E-commerce brands that run subscriptions have key considerations that need to be thought about and included. Understanding their target audience: It all starts with knowing who you're serving. Dive deep into the needs, preferences, and pain points of your ideal customers to create tailored subscription offerings that resonate with them. The better you understand your audience, the more successful your subscription model will be. Defining pricing and billing terms: Finding the sweet spot between affordability and profitability is crucial when it comes to pricing your subscription offerings. Take the time to research and test different pricing structures and billing frequencies to determine what works best for your target audience – and your bottom line. Creating a seamless user experience: Nobody likes a clunky online experience, right? Make sure to design a smooth and intuitive customer journey, from signing up to managing their subscription. A positive experience with your brand will keep subscribers coming back for more and singing your praises to others. Implementing effective customer support: There's nothing quite like feeling heard and understood when you have an issue with a product or service. Providing timely and empathetic customer service is essential for fostering trust and loyalty among your subscribers. Remember, communication is key, and your customers will appreciate it! Regularly evaluating and refining your offerings: The e-commerce landscape is constantly evolving, and so should your subscription offerings. Keep a finger on the pulse of your customers' needs and preferences and be open to making changes and improvements based on feedback. This adaptability will not only keep your subscribers happy but also help you stay ahead of the competition. The great thing is those key considerations will set you up for success because they’ll turn into your guiding principles. Of course, you might be thinking, “Not so fast. A subscription model isn’t a bowl of fries with ketchup on the side while I’m sitting in 25-degree sunshine next to a pool. It’s not perfect.*” You’re right. It does have challenges. Facing the Challenges Head-On So, while the benefits of subscription billing are pretty enticing, there are some challenges. But that’s exactly what you’d expect on the journey to greatness. Challenge 1: Managing customer churn: It can be an obstacle in subscription-based e-commerce, and there are a variety of reasons, including mistakes, missed opportunities, not understanding customer wants and needs, and products that don’t target or solve their problems. Challenge 2: Navigating complex tax regulations: Intricate tax rules vary across regions and countries and can muddle things. Compliance can be daunting and it’s a high-stakes situation. Challenge 3: Scaling your subscription business: When the subscriber base grows, so do demands on your time and resources. That means investment, higher costs, and less on the bottom line. Before you run for the hills (or at least click off this article), we’ve got to point out that these challenges are easily get-aroundable. The solution is simple. So that joy of missing out is still way within your grasp. *Confession time - fries by the pool is not the kind of joy of missing out that we’re down for. To overcome these subscription challenges, you need one thing. The right tool. And that’s automation. The Role of Automation in Subscriptions It’s the tool that kicks all the joy of missing out into uber mode. Harnessing the power of automation in your subscription-based e-commerce business can streamline processes, reduce errors, and help you focus on what really matters – your customers. Here’s just a few of the ways how automation enables the subscription model: Automated billing and invoicing: Manual billing and invoicing are gone! Automation generates and sends accurate and timely invoices to subscribers. How many hours will that free up for your business? Efficient customer communication: Subscribers stay informed, engaged and connected to your brand with personalized emails, notifications, and marketing messages. Accurate tax and compliance calculations: Fear of regulations is a thing of the past because compliance is part of the beauty of automation. Reliable, easy-to-access figures make everything easy to calculate and follow. Streamlined subscription management: Automation tools free you from tasks like updating payment information, processing cancellations, and handling upgrades or downgrades. It recognizes revenue too. Data-driven insights: Automation collects and analyzes data on your subscribers giving you valuable insights into what they want and need, when they want it. Automation in your subscription-based e-commerce business saves your time, resources, streamlines processes, maximises revenue opportunities, and creates an enjoyable experience for your customers. Then bottom line is this. You deserve to miss out. You deserve to miss out on the challenges, costly mistakes, and headaches that keep you up at night. Experience the joy of freedom to not only grow, but have the time and extra resources to pursue the vision you’ve had for your company. 86% of consumers will leave a brand they trusted after two bad customer experiences. - Emplifi So if you’re looking to give your subscribers the best possible experience (and reduce churn!), make sure personalization is at the top of your priority list—it could be the difference between success and failure. And if you give these SaaS customer personalization tips a try, you’ll be on track to providing them an unforgettable experience that keeps them coming back for more.Ready to streamline your processes, reduce errors, automate your subscription management operations, and finally focus on your customers?
Bluefort is the Microsoft Cloud Partner and Authority with core competence in Subscription Management and Recurring Revenue automation for SMBs and Enterprise Business.
