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From AI Assistance to AI Agency Why Business Central Is Ready for Agentic AI What Agentic Looks Like in Practice Why Agentic AI Matters for Subscription and Recurring Revenue Models From Alerts to Action Governance Control and Trust The Role of Platforms and Architecture Final Thought

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Agentic AI at Work in Business Central: From Assistance to Action

09.02.2026

SMBs

Artificial intelligence is already present in Microsoft Dynamics 365 Business Central.

From Copilot prompts to assisted data entry and contextual suggestions, AI has begun to improve productivity and reduce friction in day-to-day tasks. These capabilities matter , but they represent only the first phase of AI adoption in ERP.

The next phase is more significant.

As subscription models, recurring revenue, and operational complexity grow, organisations are moving beyond AI that assists users toward AI that can act within defined boundaries, execute workflows, and support decisions across the revenue lifecycle.

This shift is often described as agentic AI , and for Business Central users, it marks a transition from insight to execution.

From AI Assistance to AI Agency

Most AI capabilities in ERP today are assistive by design.

They help users summarise information, generate content, surface insights, or complete tasks faster. The user remains firmly in control, deciding what action , if any , should follow.

Agentic AI introduces a different operating model.

Rather than waiting for prompts, agentic systems are designed to observe, reason, and act within predefined rules. They monitor events as they occur, identify when intervention is required, and initiate actions automatically , escalating to humans only when needed.

In Business Central environments, this distinction is critical.

As transaction volumes increase and subscription complexity grows, manual intervention does not scale. Assistance improves efficiency. Agency changes outcomes.

Why Business Central Is Ready for Agentic AI

Business Central provides a strong foundation for agentic AI because of its structured data model and central role in finance and operations.

Contracts, pricing, billing, revenue recognition, customer data, and operational events already live within , or flow through , the ERP. This creates the context agentic AI requires to operate responsibly.

When Business Central is extended with a purpose-built subscription and revenue layer such as LISA Business, that context becomes even richer. Subscription lifecycle events, pricing changes, renewals, and usage signals are structured, governed, and traceable , enabling AI to reason about revenue with accuracy.

This is what allows AI to move beyond recommendation into controlled execution.

What “Agentic” Looks Like in Practice

Agentic AI in Business Central does not mean autonomous systems making unchecked decisions.

Instead, it means AI operating within clearly defined guardrails, supporting teams by handling repeatable, time-sensitive actions that humans are poorly suited to manage at scale.

In practice, this includes scenarios such as:

Monitoring subscription changes and ensuring downstream billing and revenue processes remain aligned

Detecting anomalies or inconsistencies and triggering corrective workflows

Identifying renewal risk early and initiating predefined engagement steps

Prioritising exceptions that genuinely require human review

Supporting finance and RevOps teams with proactive actions instead of reactive clean-up

With platforms like LISA Business, these actions are grounded in subscription logic that is native to Business Central , not bolted on through external tools.

Why Agentic AI Matters for Subscription and Recurring Revenue Models

Subscription businesses operate on continuous change.

Customers upgrade, downgrade, pause, renew, or churn. Pricing evolves. Usage fluctuates. Each change introduces operational and financial implications that must be handled correctly , and quickly.

Human-led processes struggle with this pace.

Agentic AI is particularly well suited to subscription and recurring revenue models because it can:

Observe changes as they occur, not weeks later

Ensure operational actions stay aligned with commercial reality

Reduce revenue leakage caused by delayed or missed actions

Improve forecast confidence by maintaining cleaner, more current data

Free teams to focus on higher-value decisions

For Business Central users running recurring revenue models, this represents a step change in scalability.

From Alerts to Action

One of the most common failure points in AI adoption is over-alerting.

Dashboards fill with warnings. Teams receive notifications they do not have time to act on. Important signals are lost in noise.

Agentic AI addresses this by coupling detection with execution.

Rather than flagging every issue, agentic systems are designed to take the first step, validating data, triggering a workflow, or preparing a recommendation , and escalate only when human judgment is required.

This is where subscription-aware platforms like LISA Business play a critical role: they provide the operational structure that allows AI to act safely and consistently.

Governance, Control, and Trust

For finance and operations leaders, trust is paramount.

Agentic AI must operate transparently, predictably, and within governance frameworks defined by the organisation. In Business Central environments, this means:

Clear rules governing what AI can and cannot do

Full auditability of actions taken

Human oversight where financial or compliance risk exists

Alignment with accounting and revenue recognition standards

When agentic AI is built on top of governed subscription and revenue models , rather than loose integrations , it strengthens control instead of undermining it.

The Role of Platforms and Architecture

The shift from assistive AI to agentic execution does not happen automatically.

It requires intentional design across data models, workflows, and revenue architecture. Business Central provides the ERP foundation, but subscription and recurring revenue intelligence must be structured correctly to support AI-driven action.

This is precisely where platforms like LISA Business are designed to operate, extending Business Central with subscription-native capabilities that make agentic AI both possible and practical.

Final Thought

Agentic AI is not about handing control to machines.

It is about designing systems that can act faster, more consistently, and more responsibly than manual processes ever could , while keeping humans firmly in charge of outcomes.

For Business Central users, the move from AI assistance to AI action marks the next stage in ERP evolution: from system of record, to system of insight, to system of execution.

Book a Consultation

If you’re running subscription or recurring revenue models on Dynamics 365 Business Central and want to understand how agentic AI, subscription intelligence, and platforms like LISA Business can work together in practice, a structured conversation is the best place to start.

Book a consultation with Bluefort to review your current Business Central architecture and explore how agentic AI can support scalable subscription and revenue operations.

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Why Copilot Alone Isn’t Enough for Recurring Revenue in Business Central

Microsoft Copilot is transforming how users interact with Dynamics 365 Business Central. From summarising records and generating reports to assisting with data entry and analysis, Copilot enhances productivity and reduces friction across finance and operations. It makes ERP more conversational, more intuitive, and more accessible. However, when it comes to recurring revenue and subscription models, Copilot alone is not enough. Recurring revenue is not primarily a productivity problem. It is an operating model problem. Copilot Is Assistive, Not Structural Copilot improves how users interact with Business Central. It helps teams work faster, understand data more easily, and reduce manual effort in routine tasks. However, Copilot operates on top of existing data and workflows. If subscription logic is fragmented, billing rules are loosely governed, or recurring revenue processes rely on workarounds, Copilot cannot fix that structural gap. It can assist within the system, but it does not redesign the system. Recurring revenue requires more than better prompts. It requires a governed architecture. The Real Challenge of Recurring Revenue Subscriptions introduce continuous change. Customers upgrade and downgrade. Pricing evolves. Usage fluctuates. Contracts renew or churn. Each event must align across billing, revenue recognition, forecasting, and reporting. In many Business Central environments, recurring revenue is still managed through a mix of: Custom tables Manual processes External spreadsheets Add-on billing routines This approach may work initially, but as volume grows, complexity compounds. The core issue is not a lack of intelligence. It is a lack of structured subscription governance. Where LISA Business Comes In This is where LISA Business, developed by Bluefort, extends Dynamics 365 Business Central. LISA Business introduces subscription-native capabilities directly inside the ERP environment. It governs contract lifecycle events, recurring billing logic, pricing models, renewals, and revenue alignment in a structured way. By embedding subscription governance within Business Central, LISA Business ensures that recurring revenue is managed as a first-class operating model rather than as an add-on. The distinction matters. Copilot can summarise subscription data. LISA Business structures it. Copilot can analyse trends. LISA Business governs lifecycle logic. Copilot can assist users. LISA Business defines how recurring revenue operates. Together, they are powerful. Separately, they solve different problems. Why Structure Must Come Before Intelligence Copilot and agentic AI capabilities become significantly more valuable when they operate on clean, governed subscription models. Without structured recurring revenue architecture: AI insights may be inconsistent Forecasting may remain unreliable Billing misalignments may persist Manual reconciliations will continue With LISA Business providing a structured subscription layer inside Business Central, Copilot and future AI capabilities can operate with clarity and confidence. Intelligence works best when the operating model is sound. Recurring Revenue Requires an Execution Layer Recurring revenue is dynamic. It requires systems that can respond to change continuously rather than simply report on it. Bluefort’s architectural approach brings this together: Business Central remains the financial backbone LISA Business structures and governs subscription logic Copilot and agentic AI enhance insight and execution Copilot improves productivity. LISA Business ensures structural integrity. Agentic AI enables action. This layered model allows organisations to scale recurring revenue without scaling operational complexity at the same rate. Governance Still Matters For finance leaders, control and compliance remain paramount. Recurring billing, revenue recognition, and subscription amendments must align with accounting standards and audit requirements. Copilot does not replace governance frameworks. It operates within them. LISA Business ensures those governance frameworks are embedded directly in the subscription lifecycle. This makes Copilot and AI capabilities more reliable, predictable, and aligned with financial controls. Final Thought Copilot represents a major advancement in user productivity within Dynamics 365 Business Central. However, recurring revenue success is not achieved through assistance alone. It requires structured subscription governance, clear lifecycle logic, and an operating model designed for continuous change. Copilot makes ERP smarter to use. LISA Business makes recurring revenue smarter to operate. Together, they unlock the next stage of scalable subscription growth. Ready to Strengthen Your Recurring Revenue Architecture? If you are running subscription or recurring revenue models on Dynamics 365 Business Central and want to ensure Copilot and AI capabilities are built on a governed, scalable foundation, Bluefort can help. Book a consultation with Bluefort to review your Business Central environment and explore how LISA Business can modernise your recurring revenue operating model. You can also learn more about LISA Business for Dynamics 365 Business Central and how it structures subscription management directly inside ERP.

02.02.2026 SMBs

The Future of Recurring Revenue on Business Central

Recurring revenue is no longer an emerging model for small and mid-sized businesses, it is fast becoming the default. Subscriptions, usage-based pricing, managed services, and long-term commercial agreements now sit at the heart of how revenue is generated, retained, and expanded. At the same time, many organisations running Microsoft Dynamics 365 Business Central are discovering a growing disconnect between how their revenue is sold and how it is operated. Business Central provides a strong and trusted ERP foundation. But recurring revenue introduces a fundamentally different operating reality, one defined by continuous change rather than discrete transactions. Recognising this shift, Bluefort works with organisations and Microsoft partners to extend Business Central with a dedicated recurring revenue operating layer, enabling scale without sacrificing control. That approach is embodied in LISA Business, Bluefort’s subscription and recurring revenue platform built specifically for Business Central environments. The result is not a replacement for ERP, but a new way of thinking about how recurring revenue should be run. Recurring Revenue Is Continuous, Not Periodic Traditional ERP systems were designed around periodic events: sales orders, invoices, postings, and period-end close. Even where recurring billing exists, the underlying assumption remains that revenue happens at intervals. Recurring revenue businesses operate differently. Contracts evolve mid-term. Customers upgrade, downgrade, pause, or add services. Usage fluctuates. Pricing changes over time. Renewals approach quietly and escalate quickly. Each change affects billing, revenue recognition, cash flow, and customer experience. In this environment, revenue is not a sequence of accounting events. It is a living commercial system, one that must be continuously managed. This is where many organisations begin to feel strain when operating subscription models directly on ERP structures designed for transactional certainty rather than ongoing commercial intelligence. Where Business Central Excels, and Where Gaps Emerge Business Central excels as a system of record. It delivers financial control, auditability, and operational consistency. For finance teams, it remains a platform of trust. However, as recurring revenue complexity grows, familiar symptoms tend to appear: Subscription lifecycles tracked outside the ERP Renewals monitored in spreadsheets Contract changes handled manually Usage data reconciled after the fact Revenue insight concentrated in finance, not shared across teams These challenges are often approached as configuration or customisation issues. They reflect something deeper: recurring revenue is being operated without a dedicated operating model. ERP systems are optimised to record what has already happened. Recurring revenue demands systems that can also manage what is happening now, and what needs to happen next. This is the gap LISA Business is designed to address: not by altering Business Central’s core role, but by extending it with purpose-built subscription intelligence and lifecycle control. From ERP Execution to Revenue Operations The future of recurring revenue on Business Central is not about more custom code. Nor is it about replacing ERP. It is about introducing a revenue operations layer that sits alongside ERP execution. This layer performs a different role: Managing subscription lifecycles as first-class operational entities Controlling renewals, amendments, cancellations, and upgrades with auditability Applying proration, price changes, and indexation consistently Aligning billing, revenue recognition, and commercial intent Exposing recurring revenue health through meaningful KPIs LISA Business was built around this principle: allowing Business Central to remain the financial backbone, while recurring revenue logic is handled in a way that reflects the realities of subscription-based business models. The shift is subtle but important, from using ERP purely as an execution engine, to supporting intelligence-led revenue operations. Why Automation Alone Falls Short Many organisations attempt to bridge recurring revenue gaps with workflow automation. Rules are created. Exceptions are managed. Manual effort is reduced, up to a point. But recurring revenue is inherently dynamic. As volume increases, edge cases become normal. Contract changes multiply. Usage models evolve. Rigid rules struggle to keep pace. This is why recurring revenue success increasingly depends not just on automation, but on context-aware operational intelligence, systems that understand subscription state, change history, and commercial intent. Within the Bluefort platform, this intelligence begins with LISA Business and is increasingly augmented by Agentic AI, enabling organisations to reduce manual effort while maintaining governance and control as complexity grows. Redefining “Fit” for ERP in a Subscription World Historically, ERP fit has been judged by how much a system can be customised. In a recurring revenue world, fit is defined differently: Can the system absorb ongoing contract change without manual rework? Can pricing, billing, and revenue recognition remain aligned as models evolve? Can teams see recurring revenue risk before it materialises? Can growth occur without proportional operational overhead? The organisations that succeed will not be those with the most heavily customised ERP environments. They will be those that extend ERP intelligently, separating execution from recurring revenue intelligence. This is precisely where Bluefort positions LISA Business: as a repeatable, scalable way to run modern recurring revenue models on Business Central—without turning ERP into a bespoke subscription engine. What This Means for SMBs and Partners For SMBs, the future of recurring revenue on Business Central is about confidence, confidence that growth will not introduce operational fragility, and that revenue models can evolve without chaos. For Microsoft partners, it is about repeatability and margin. Subscription demand continues to grow, but sustainable success depends on delivering recurring revenue models without bespoke implementations and ongoing firefighting. By introducing a structured recurring revenue operating layer through LISA Business, organisations and partners gain a common foundation, one that supports scale, governance, and long-term growth. Looking Ahead The future of recurring revenue on Business Central will not be defined by a single feature or release. It will be shaped by how deliberately organisations rethink the relationship between ERP execution and revenue intelligence. Business Central remains a powerful foundation. But as recurring revenue becomes the dominant growth model, success will depend on what surrounds ERP as much as what resides within it. Bluefort’s role in this future is clear: helping organisations move from transactional ERP execution to intelligence-led recurring revenue operations, starting with LISA Business as the subscription and revenue intelligence layer built for Business Central. The transition is already underway. The only remaining question is how intentionally organisations choose to lead it.

06.02.2025 Customer Insight

From Boxes to Experiences: How Subscription Retailers Can Build Emotional Loyalty

The subscription retail industry has seen phenomenal growth, but delivering a product isn’t enough to keep customers loyal anymore. With consumer expectations evolving, loyalty has shifted from simple product satisfaction to deeper, experience-driven engagement. Emotional loyalty - the connection customers feel toward a brand that aligns with their values and provides meaningful interactions - is now the gold standard. A report from Forbes suggests that emotional attachment is the biggest driver of value, being responsible for about 43% of business value. Subscription retailers that embrace this change are poised to create unshakable relationships with their customers – a tribe of brand ambassadors. In this article, we explore how subscription retailers can cultivate emotional loyalty through personalized engagements, community building, gamification, and data-driven optimization. The Loyalty Shift: Beyond Products The landscape of customer loyalty is rapidly changing. A study from Deloitte shows that 57% of consumers are more likely to remain loyal to brands that align with their values, and 86% are willing to pay more for better experiences. This shift is even more pronounced in the subscription sector, where 77% of consumers with retail subscriptions buy more products from the brands they have relationships with [17]. For subscription retailers, this means moving beyond delivering a box of goods every month. Creating emotional loyalty requires understanding customers on a deeper level and meeting them where they are—both emotionally and physically. This involves not only providing high-quality products but also delivering a cohesive brand experience that resonates across every touchpoint. Personalization: The Cornerstone of Emotional Loyalty Personalization is crucial in building emotional loyalty. Customers want to feel seen and understood, and subscription retailers have a unique advantage—they hold detailed data on preferences, purchasing habits, and feedback. To leverage this information effectively: Create tailored subscription bundles or exclusive product recommendations. Offer flexibility, allowing customers to pause, swap, or modify their subscriptions. Proactively suggest upgrades or additional services based on customer usage patterns. The impact of personalization is significant. Studies show that 78% of customers are more likely to repurchase from a company that personalizes their experience. Moreover, when a shopping experience is highly personalized, customers are 110% more likely to add additional items to their baskets and 40% more likely to spend more than they had planned [23]. Building a Community Around Your Brand Emotional loyalty thrives when customers feel part of a community. Subscription retailers can achieve this by creating environments that encourage interaction, sharing, and belonging. Consider offering: Exclusive forums where customers can connect and discuss their experiences. Regular online or in-person events to engage with subscribers. VIP perks for top-tier customers, such as early access to new products or behind-the-scenes content. The power of community in building loyalty is evident: 71% of customers will advocate for a brand based on their emotional connection to it [24]. This word-of-mouth marketing amplifies a retailer's reach and builds trust organically. Gamification and Emotional Rewards Gamification is a powerful tool for deepening customer engagement. Creating tiered loyalty programs, point-based systems, or interactive challenges can make the subscription experience more dynamic and rewarding. The effectiveness of gamification is backed by data: Brands incorporating gamification into their customer engagement strategies see a 47% rise in engagement, a 22% rise in brand loyalty, and a 15% rise in brand awareness. Gamified loyalty programs for email marketing campaigns can enhance customer lifetime value by 48% and conversion rates by 15% [23]. Embracing Sustainability and Social Responsibility Modern consumers are increasingly conscious of sustainability and social responsibility. Subscription retailers can tap into this trend by: Offering eco-friendly product options or packaging. Supporting social causes aligned with brand values. Providing transparency about sourcing and production practices. This approach resonates strongly with customers: 78% of consumers say environmental practices influence their buying decisions [14]. By incorporating these elements into their loyalty programs, subscription retailers can create deeper emotional connections with their environmentally conscious customers. Leveraging AI for Predictive Analytics and Personalization Artificial Intelligence (AI) is revolutionizing how subscription retailers understand and cater to their customers. By harnessing AI algorithms to analyze customer preferences and purchase history, companies can: Predict future needs and preferences. Offer hyper-personalized product recommendations. Optimize pricing and promotional strategies. The impact of AI in loyalty programs is significant, with 93% of businesses recognizing AI's crucial role in customer service and retention [37]. Conclusion The future of subscription retail lies in creating experiences that resonate on an emotional level. By embracing personalization, community-building, gamification, sustainability, and AI-driven optimization, subscription retailers can build the emotional loyalty needed to stand out in an increasingly crowded market. The statistics speak for themselves: customers with an emotional relationship with a brand have a 306% higher lifetime value and are 71% more likely to recommend the brand to others [17]. As customer expectations continue to rise, retailers that invest in creating meaningful, data-driven connections will secure not just subscribers but passionate advocates. In the end, the strongest loyalty is earned by making customers feel valued, understood, and part of something bigger than just a transaction. The future of subscription retail belongs to those who turn boxes into experiences and transactions into relationships. Bluefort Bluefort is the Microsoft Cloud Partner and the Centre of Subscription Excellence for Microsoft Dynamics 365. Trusted by SMB and Enterprise customers alike, Bluefort delivers cutting-edge solutions for subscription management, from financial workflows to full-scale ERP systems. With a deep focus on industries like Retail & eCommerce, SaaS, Memberships, and IT services, Bluefort helps businesses optimize recurring billing, automate payment processes, and scale operations seamlessly. By leveraging Microsoft’s intelligent cloud platform, Bluefort empowers organizations to thrive in the subscription economy with streamlined efficiency and exceptional customer experiences.

06.02.2025 Customer Insight

Beyond Tech-Savvy: How AI and Immersive Experiences are Reshaping Retail in 2025

In 2025, the retail landscape has undergone a seismic shift, with artificial intelligence (AI) and immersive technologies at the forefront of this transformation. A recent study by Gartner reveals that 95% of customer interactions in retail will be powered by AI by 2025, marking a dramatic increase from just a few years ago. This article explores how these cutting-edge technologies are not just meeting but dramatically exceeding customer expectations, creating a new paradigm in retail experiences. AI-Powered Hyper-Personalization The era of one-size-fits-all retail is long gone. Today's AI systems have evolved far beyond basic personalization, creating deeply individualized experiences that feel almost prescient to consumers. Real-Time Behaviour Analysis Modern AI algorithms analyse customer behaviour in real-time, considering factors such as browsing patterns, purchase history, and even contextual data like weather and local events. This allows retailers to offer product recommendations and promotions that are not just personalized but contextually relevant. According to a study by McKinsey, AI-driven personalization can reduce acquisition costs by up to 50% and increase revenues by 5-15%. Predictive Personalization Leading retailers are now employing AI models that predict future customer needs and preferences. For instance, Amazon's recommendation engine uses machine learning to analyse consumer behaviour and suggest products that match individual preferences, leading to increased customer satisfaction and higher conversion rates. Emotional AI Integration Perhaps the most groundbreaking development is the integration of emotional AI. Retailers like Sephora are using facial recognition and voice analysis in their virtual try-on experiences to gauge customer reactions to products, fine-tuning recommendations based on emotional responses. Immersive Shopping Experiences The line between digital and physical retail has blurred significantly, with immersive technologies creating engaging, multi-sensory experiences that were once the realm of science fiction. Advanced Augmented Reality (AR) AR has moved beyond simple product overlays. IKEA's AR app allows customers to not just place virtual furniture in their homes but also simulates how the furniture will age over time and how it interacts with different lighting conditions throughout the day. This level of detail in AR applications has led to a 36% increase in conversion rates for retailers implementing these technologies. Virtual Reality (VR) Showrooms Luxury car manufacturers like Audi have created fully immersive VR showrooms where customers can customize and test drive vehicles in various virtual environments. This technology has expanded to other high-end retail sectors, allowing customers to experience products in context before making significant purchases. A study by Retail Perceptions found that 71% of consumers would shop at a retailer more often if they offered AR experiences. Haptic Feedback Integration The latest development in immersive retail is the integration of haptic feedback technology. Online clothing retailers are now offering "virtual fitting rooms" where customers can feel the texture and weight of fabrics through advanced haptic gloves, bridging the tactile gap in online shopping. This technology is expected to reduce return rates by up to 30% in the fashion industry. Seamless Omnichannel Integration The concept of omnichannel has evolved into a truly unified commerce experience, where the boundaries between online and offline shopping cease to exist. Unified Customer Profiles Retailers now maintain a single, comprehensive view of each customer across all touchpoints. This allows for seamless transitions between online browsing, in-store visits, and mobile app interactions, with each channel informed by interactions on others. According to a report by Harvard Business Review, customers who use multiple channels spend an average of 4% more in-store and 10% more online than single-channel customers. Real-Time Inventory Synchronization Advanced AI systems manage inventory across all channels in real-time. Customers can check in-store availability online, reserve items for in-store pickup, or have out-of-stock items shipped directly from another location, all managed by a centralized AI. Walmart's implementation of AI-driven inventory management has led to a 16% reduction in out-of-stock. Intelligent Assistants AI-powered assistants now accompany customers throughout their shopping journey, accessible via mobile app, in-store kiosks, or even holographic projections. These assistants provide consistent, personalized service across all channels, remembering preferences and past interactions. A study by Juniper Research predicts that chatbots will save retailers $439 billion annually by 2025, up from just $7 billion in 2019, and growing to $72 billion. AI-Driven Operational Efficiency Behind the scenes, AI is revolutionizing retail operations, leading to improved efficiency, reduced costs, and enhanced customer satisfaction. Predictive Inventory Management AI algorithms now predict demand with unprecedented accuracy, considering factors ranging from social media trends to weather forecasts. This has led to a 30% reduction in overstocking and a 25% decrease in lost sales due to stockouts across the retail. Automated Supply Chain Optimization AI-powered systems continuously optimize supply chains, adjusting routes and schedules in real-time based on traffic, weather, and even geopolitical events. This has resulted in a 20% reduction in shipping times and a 15% decrease in logistics costs for early adopters. Smart Loss Prevention Advanced computer vision and machine learning algorithms have dramatically reduced shrinkage. Walmart's implementation of AI-driven loss prevention technology has led to a 35% reduction in theft and a 50% decrease in false alarms. Ethical AI and Data Privacy As AI becomes more pervasive in retail, ethical considerations and data privacy have moved to the forefront of industry concerns. Transparent AI Policies Leading retailers now provide clear, accessible information about how AI is used in their operations and how customer data is processed. Amazon, for instance, has introduced an "AI Transparency Centre" where customers can view and control how their data is used in AI-driven recommendations. Ethical AI Frameworks The retail industry has collaborated to establish ethical AI frameworks, ensuring that AI systems are developed and deployed responsibly. These frameworks address issues such as bias prevention, data privacy, and the ethical use of emotional AI. A survey by Capgemini found that 62% of consumers would place higher trust in a company whose AI interactions they perceived to be ethical. Customer Data Control Retailers are giving customers unprecedented control over their data. Target's "Data Dashboard" allows customers to view, edit, or delete any personal data used in AI systems, fostering trust and transparency. In conclusion, the retail landscape of 2025 is characterized by deeply personalized, immersive experiences powered by ethical AI systems. Retailers that have embraced these technologies are not just meeting customer expectations; they're anticipating and exceeding them in ways that were unimaginable just a few years ago. As we look to the future, it's clear that the most successful retailers will be those that continue to innovate, pushing the boundaries of what's possible while maintaining a steadfast commitment to customer trust and ethical practices. Bluefort Bluefort is the Microsoft Cloud Partner and the Centre of Subscription Excellence for Microsoft Dynamics 365. Trusted by SMB and Enterprise customers alike, Bluefort delivers cutting-edge solutions for subscription management, from financial workflows to full-scale ERP systems. With a deep focus on industries like Retail & eCommerce, SaaS, Memberships, and IT services, Bluefort helps businesses optimize recurring billing, automate payment processes, and scale operations seamlessly. By leveraging Microsoft’s intelligent cloud platform, Bluefort empowers organizations to thrive in the subscription economy with streamlined efficiency and exceptional customer experiences.

19.12.2024 Customer Insight

How To Give Your Subscription Customers the Autonomy They Want

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.

17.12.2024 Retail

Retail Subscriptions: Why Pricing is Everything

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.