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In this article The Challenges that SMBs Like Yours Face How Automation Brings Your SMB Major Gains The Problem of Money What Dynamics 365 Business Central Bluefort Automation Does for You Conclusion

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Are You an SMB with Small Budgets and Resources? Here’s How to Get More From Them

02.09.2024

SMBs

If you’re an SMB with a tight budget and stretched resources, you probably struggle to thrive and grow. This article talks through the most common challenges and impacts faced by subscription and membership-based SMBs. It also shows how the right platform can cut operational costs, improve customer experience, boost incoming revenue and growth, and provide reliable financial management.

The Challenges that SMBs Like Yours Face

A tight budget controls everything.

That means you are stuck making tough choices and cutbacks. You may have to delay important things.

It’s pressure that’s demoralizing and keeps you in a state of frustration. You and your teams work hard, juggle roles and jobs, but no matter how hard you all try, things skip through the cracks.

Here are some of the areas where SMBs feel it the most:

1. Resource allocation – Resources involve trade-off. For example, should you invest in marketing or sales to drive growth, or update the technology you desperately need? Or should you bring in stellar talent to get the job done? It’s all decisions about what can temporarily suffer for the sake of something else.

2. Staff morale – Consistently overworked employees battle low morale and burnout. They’re stuck with tasks that are outside of their talent and expertise. And they’re far more likely to quit. Ánd employee turnover is disruptive and expensive for an SMB.

3. Inefficiency in your operations – Limited resources create operational problems. Everything from data entry, sales strategy, invoicing, reconciliation, and compliance are slowed down and prone to mistakes. That boosts costs and leaves you vulnerable to upsetting customers.

4. Limited tech – Outdated tech creates more problems than it solves. You might have a Frankenstein situation with multiple solutions and none of the information flowing between them. That puts you at a huge disadvantage to any competitor that has their tech solution specifically geared toward driving efficiency and keeping an eye on rivals like you.

5. Struggling customer service – Good relationships with customers is so important because each customer counts. But it’s hard to keep up with all queries, returns, and problems in a timely way. That’s a recipe for churn, which robs you of revenue in the short and long-term.

This cycle can be hard to escape.

But if you’re stuck, how can you get your way out of these challenges, let alone accomplish things that will build and strengthen your SMB?

How Automation Brings Your SMB Major Gains

The more your resources are stretched, the bigger the transformation that automation can bring.

It’s a game-changer. Automation uses cutting-edge technology to do three things:

perform time-wasting repetitive tasks

streamline and integrate multiple processes

boost efficiency and cut costs

For SMBs, the right choice of automation provider can make the difference between treading water and winning gold in the 400m individual competition at the Olympics.

Let’s look specifically at how that works for an SMB:

It streamlines the boring, time-stealing administrative tasks

No one likes doing admin. Data entry, scheduling, tracking and processing usage, invoicing, and emailing take the joy of your day.

They also stop you from doing what makes most of your talent and passion.

But automation takes care of these things for you. Let’s look at invoicing. Automation takes the contract terms, monitors for any changes and usage, creates reminders for your customers, correctly calculates the invoices on time, sends them, and collects the payments for you.

How much time would that save you? And how much of a cash flow situation would that improve?

And that’s just one function. A better CRM

You know how important customer relationships are to your SMB. And that requires consistent management.

Your SMB might struggle to keep track of all interactions with every customer. Things might fall between the cracks. When a customer feels neglected or ignored, when you reach out with sales tactics, it turns them off.

A good CRM:

manages sales pipelines

creates personalized experiences and offerings

keeps track of communication with customers

constantly pivots to continue a good business-customer relationship.

Without automation, that’s a big ask.

But with automation, you’ll know that nothing’s forgotten. It even spots customers at risk of leaving and creates tailored suggestions for offers and interactions to keep them on-side.

The personalized experience

Customers love and expect personalization. It can be hard for SMBs to even think about personalization because of the resources needed.

But with automation, it’s done for you. It will cater to their individual and collective needs and preferences.

Personalization includes:

customized content and marketing

tailored products and offerings

pricing based on patterns and needs

getting feedback

recommendations

loyalty programs

It also manages emails and lead generation using segmentation filters (that can be as niche as you want) that consider patterns, needs, and demographic information.

And it’s so effective. When SMBs offer a personalized experience, they boost customer satisfaction and loyalty, improve retention rates, and increase their overall Customer Lifetime Value (CLV).

Why? Because most of their competitors can’t bring the same experience to the table. Brings sales opportunities

SMBs with stretched budgets and resources need as many sales opportunities as possible. They simply cannot afford to miss anything.

But keeping track of all your customers, what products they use, what they need, what they don’t want can be a formidable task for whoever handles sales in your business.

Which means that sales opportunities will be missed.

Maybe not all, but some. And that is costly.

Automation is built to combine customer data and CRM to spot sales opportunities, and this goes beyond personalized marketing.

The system will take contract terms, customer usage, competitor offerings, and customer behavior and engagement, to spot what types of products and offering combination would better suit each customer’s situation.

So if the solution noticed the customer wasn’t using a particular product, or there’s a new product that would better meet their needs, the system will create a special offering, and channel it to the customer at the best time.

All sorted out for you.

It’s a proactive approach that not only revs up your sales, but makes customers happier, because who doesn’t love something created just for you?

Better financial management

It’s challenging for an SMB to keep up with the financial side.

With subscriptions, manual invoicing alone takes up a huge chunk of an accountant’s time. And they’re also expected to:

chase sales and customer service for contract terms and usage

create and send invoices

change any incorrect invoices

collect and chase payments

reconcile back to the ledger

recognize revenue

create reports for strategic decision-making

predict cash flow trends

assure financial compliance

prepare for audits

pay inbound invoices

All this accurately and on time.

And take reliable numbers to stakeholder meetings. That’s a lot for a small team with no tools.

But automation can take care of all these tasks and ensures it’s all on time and error-free. And on top of that, you’ve got numbers you can take to the bank. And your business will stay compliant, so those vulnerabilities to fees, fines, and lawsuits are no more.

Automation can completely change how your SMB operates and bring you all these benefits.

But we know you’ve still got one big concern about it.

The Problem of Money

It’s likely that you love the idea of automation, but you’re worried about the cost. After all, your budgets and resources are already stretched.

And making the leap is a lot easier than you think when you consider ROI.

Here’s what you get in both the short and long-term (insert links to relevant articles on the site):

Lower costs – Automation reduces the need for additional staffing related to the automated processes (even if you scale). It minimizes payroll and sales expenses. It spots cost-saving opportunities thanks to data analysis.

Efficiency gains – everything runs more smoothly, and all repetitive tasks are taken care of.

An end to revenue leakage – because invoicing is correct and timely, you’ll never suffer from the revenue leakage caused by forgotten invoices and under-invoicing.

Better sales – opportunities are spotted and created, so your inbound revenue is higher

Higher customer satisfaction and retention – personalization and data insight give your customers the experience they want and stick around for. You won’t have to rely on high-cost acquisition because your churn will be lowered.

Saving money and boosting inbound revenue in both the short and long-term is an irresistible prospect.

If you can see the value, which solution should you choose?

What Dynamics 365 Business Central + Bluefort Automation Does for You

Business Central is the perfect ERP system that automates so much for SMBs. It’s also flexible and it grows with you.

Bluefort are experts in automated recurring revenue. We can implement Business Central for you with all the customization you need to get the most out of everything the platform automates.

We’re here to help you:

free your time and resources

cut costs and churn

build your customer base

bring in more revenue

expand your business

make your life a lot easier.

D365 Business Central and Bluefort are a comprehensive solution that delivers the best that automation has to give to your SMB.

By implementing these powerful tools, your SMB can not only reduce churn but also foster long-term customer loyalty and growth.

Conclusion

The constant pressure of running an SMB with stretched budget is stressful. There are so many challenges you must solve, without the resources that you need to do so.

But it doesn’t have to be like this.

You can get so much out of automation. Like enhanced efficiency, cut costs and churn, higher customer satisfaction, optimized processes, and better productivity.

You’ll get a sense of predictability and stability, and the time you need to focus on the future.

If you’re ready to take the next step and find out how Microsoft Dynamics 365 Business Central + Bluefort can change your SMB for the better, book a discovery call today!

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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.

11.12.2024 Retail

Retail Expansion from Bricks and Mortar to E-Commerce: What’s In It For You?

Retailers used to running physical stores can miss opportunities to sell and expand their business with E-Commerce. This article talks through the limitations of bricks-and-mortar, how E-Commerce can boost your business, and where to find the best retail E-Commerce help. In this article: Why Bricks and Mortar Isn't Enough for Retailers Anymore What E-Commerce Can Give Your Business How the Right Solution Can Crush Obstacles Easily The Impact of Bad Decisions on Subscription Retail SMBs The Secret to Good Decisions Is In Plain Sight AI-Driven Insights: How They Give You Everything You Need A well-designed brick-and-mortar retail space can bring a lot of joy. But it isn’t enough. Not these days. They’re not enough to meet the demands of modern customers or to expand your consumer base. If you want to expand, grow, and make your mark, it's important to consider offering online shopping. But as a retailer, adding an e-commerce strand and creating an online store might feel completely overwhelming. Where do you begin? We’re here to reassure you that the shift is not as daunting as you may think. You just need good information and the right tools to start bringing in all the benefits that e-commerce delivers. Why Bricks and Mortar Isn't Enough for Retailers Anymore Bricks-and-mortar stores do provide a shopping experience that many customers love. Around 94% of customers still shop in physical stores. However, the exclusive brick-and-mortar store does have real limitations. Reach: You’re stuck with customers in your general geographic location, which means you cut your business off from the global market. At least 52% of shoppers shop internationally. Costs: Physical stores demand high overhead costs, including everything from rent, heating/AC, security, staff, etc. rent, utilities, etc. 6 in 10 experts say an online store is cheaper to start, and 8 out of 10 says it’s cheaper to run, with 75% saying bricks and mortar doesn’t break even as quickly. Consumer Behavior and Preference: It’s a fact that online shopping grows each year. Online retail sales around the world have dramatically risen from $1.3 trillion in 2014 to $4.4 trillion in 2023, and by 2027, it’s expected to hit $8 trillion, accounting for nearly a quarter of total retail sales. Expanding your bricks and mortar store through E-Commerce will help you stay competitive. If you stay bricks-and-mortar only, you risk losing out to your competition because they will meet the customers where they are. What E-Commerce Can Give Your Business There are plenty of potential benefits of an online store. Here are a few of the most popular: Increased Reach and Accessibility - Not only will your brand be able to reach that global audience, but your products will be more accessible. And because your online store can run 24-7, your customers can buy what they want, when they want it. Scalability: You might be used to having to hire extra help to deal with much more seasonal demand, and those costs can add up. But growing your base (both temporarily and long-term) doesn’t necessarily stretch your resources in the same way. Most of the process is automated, and online fulfillment isn’t as costly as it is in-person (unless you're selling massive products, like ships). Customer Insights: It can be difficult, if not impossible, to get in-person customers to fill out surveys and give feedback. But online, this comes without any effort. You get detailed and valuable analytics from your customer data. This helps you understand what they like and their behavior much more. Personalization: Not only does data give you information on segments and opportunities, but you can personalize shopping experiences for your customers. This boosts conversion rates and meets expectations while boosting your revenue by up to 40%. These benefits are extremely tempting; every retailer could use each one of them. Of course, creating an online store can feel daunting. There are important factors that a retailer has to consider. A website has to be created (or expanded to accommodate E-Commerce). The site must contain an intuitive and user-friendly interface. It needs data and financial security for compliance and safety. Mobile optimization creates a great customer experience on the go. A rock-solid secure payment process brings you your cash. Stock management is a little different too. Because customers can purchase your products at any time, stock levels can change frequently. This can require real-time updates. Fulfillment and delivery logistics have to be fast and efficient. Rather than the 9-5 (or whatever your hours), customer service has to expand to 24-7 availability. Returns and exchange policies should be clear and easy for both parties. At first glance, it sounds like a massive effort. But it doesn’t have to be. Not with the right solution. How the Right Solution Can Crush Obstacles Easily When you get the right software, things get a lot easier. In fact, once the right solution is in place, you’re mostly to find you have more time to focus on the things you want to do. Like interacting with customers, thinking about the future of your brand, and creating the best strategies moving forward. It's the stuff you don’t have time to do because you’re stuck in permanent admin. You might be wondering how that’s possible, but software can ease not only the creation of an e-commerce strand, but it can take care of the obstacles for you: Financial management: Everything from correct billing to automated payments (using the payment platforms that customers love), reconciliation, reports, and audit preparation can be a cinch that saves lots of money and time. It also ensures a hassle-free experience for you and your customers. Inventory: Real-time inventory tracking that perfectly suits 24-7 shopping will help you avoid the dreaded stockouts and overstocks, which saves you money and customer alienation while protecting you from emergency supplier exploitation. Customer Relationship Management (CRM): These systems give you invaluable insight into your existing and potential customers by crunching the data. You’ll discover customer behavior across regions and countries, pricing variations, segmentation, product/add-on recommendations, and everything else you need to offer that personalized experience they expect and love. Security: It can bring you robust security measures, including legal compliance (no matter which region you sell in) including SSL certificates, and PCI compliance. Everything that protects customer data and builds trust. Conclusion A retail brand needs everything possible to build and differentiate its brand. Expanding from bricks and mortar to E-Commerce via an online store can give you the best of both worlds. All you need is the right solution to help you do it. Curious about how a solution could put you on the right path? Book a free Discovery Call with our team today.

14.11.2024 Retail

Turning Retail Subscription Customers into Brand Ambassadors

How can retailers convert subscription customers into powerful brand advocates? Is it realistic and affordable? The good news is that there are multiple things a business can do that don’t involve hiring expensive influencers and massive ad campaigns. This article outlines what brand ambassadors are, why a brand must deliver what customers want, and the best strategies to create brand ambassadors who will get attention and boost the brand’s competitive edge. In this article: What Are Brand Ambassadors? What Customers Want Why It’s Hard for Retailers to Give Customers What They Want The Impacts of Not Delivering Subscription Customers What They Want How Your Subscriptions Can Create Brand Ambassadors How to Make it All Possible, Faster and Easier Is there anything that feels better than someone talking about how great you are? We all love brand ambassadors, whether they’re speaking for us personally, or for our work and business. Because people tend to pay attention when someone takes the time to vouch for us on our behalf. Brand ambassadors can do amazing work for a business. But on the surface, having brand ambassadors feels like an expensive undertaking. As a retailer who offers subscriptions, you might think that brand ambassadors might mean retaining expensive influencers. and launching massive ad campaigns. But it doesn’t have to be like that at all. In fact, chances are you already have an untapped resource that can give you the ambassadors you need. You just have to create the circumstances that bring them to the forefront. In this article, we’ll talk about what brand ambassadors are, what customers want out of your business and why that relates to advocacy, and the strategies and tools needed to convert customers to brand ambassadors. You can reap the rewards of word of mouth. Ready? What Are Brand Ambassadors? Brand ambassadors are game-changers. They’re one step beyond loyal customers. They love your brand so much that they take the time and effort to promote your products, services, and brand to anyone who will listen. It could be in-person recommendations, testimonials on their social media, or chats on message boards and review sites. It all counts. They’re the ultimate organic growth drivers because people trust recommendations from people they know. We’ll get into how powerful it is later on. The great thing about retail subscriptions is that there’s so much more potential for brand ambassadors because you’ve got more contact with your customers over a long time. It’s a deeper, richer relationship. What Customers Want Knowing what customers want is key to turning them into ambassadors for your brand. You can’t satisfy them if you don’t know what they’re missing or what they’re looking for. Here’s what customers want: To feel valued and important: Retailers are customers too. You know how it feels to give money to a company that doesn’t care about you. They’re only around for your money. It’s annoying and doesn’t encourage you to stay. On the other hand, you know how good it feels when a company cares about you and what you think. Choice and flexibility: It’s frustrating to feel fenced in, without options. Customers like to feel a bit of control over the terms of their subscriptions. They appreciate it when you are flexible enough to allow them to make changes when necessary. Personalization: It’s something they expect, not just hope for. The best subscription experiences include offerings, pricing, add-ons, etc. that are uniquely personalized. Even little things like using their name in messaging make all the difference. Rewards for loyalty: Customers love bonuses for their loyalty. Everything from early access to products and services, exclusive discounts and offers, and content they’ll love will make them feel valued and appreciated. A seamless experience: Customers need things to be as easy and pain-free as possible. This includes everything from signing up, any onboarding, terms, on-time delivery, correct invoicing, ease of payment, and listening to feedback. Customers need a consistent, positive experience. If they don’t get it, they’ll go somewhere else. Which begs the question, why don’t all retailers offer this? What’s stopping them? Why It’s Hard for Retailers to Give Customers What They Want Just because a retailer knows that customers have expectations doesn’t mean it’s easy to meet them. There are barriers that can make it challenging. One of the most common ones is the lack of time and resources. Most retailers’ operations are stretched to the limit - particularly during this time of high competition and economic instability. Finding the time and resources necessary to make consistent and personalized customer experiences can feel as realistic as climbing Everest. You’ll need clear communication between teams. The knowledge of which offerings and products each of your customers needs. The ability to always provide the right invoices without delay. And the ability to stay in touch with your customers 24-7. Another challenge is not understanding or knowing what customers want. Any retailer that’s been caught in a stockout or overstock knows guessing needs won’t work. And without reliable data and insights, mistakes can be costly and send customers to your competition. But the one-size-fits-all approach doesn’t work either because then you’re stuck with a generic offering that doesn’t please anyone. Some retailers may be saddled with outdated tech. Obsolete, siloed, and analog systems can create bottlenecks in any point of the subscription lifecycle. No customization. Falling out of compliance. The wrong subscription details. Delays and mistakes. Missed sales opportunities. None of these things make it pleasurable for the customer or the retailer, but they happen every single day. And lastly, retailers might not have the logistics to offer loyalty bonuses, exclusive offers, or rewards. It takes a lot of organization and time to know what works and what gets each customer excited. What impacts do these problems cause for retailers? The Impacts of Not Delivering Subscription Customers What They Want Every retailer knows there are consequences to ignoring customer wants: Churn: Unhappy customers leave. One in three consumers (32%) say just one bad experience can make them walk away from a brand they love. High customer acquisition costs and low customer lifetime value: These metrics are key to retail success. You have to spend more to replace the customers you lose, and you lose out entirely on the long-term investments that customers will make in your brand. Weak competitiveness: Customers have options. And they can find what they need on their devices with one Google search. Losing customers to competitors damages your brand, revenue, and market positioning. It’s hard to stop the problems once they go too far. But turning things around with customers can mean turning things around for the business. What does that involve? How Your Subscriptions Can Create Brand Ambassadors It all comes down to making the most of those long-term subscriptions to build trust and an emotional connection to the brand. Here are the strategies that will convert your customers to the brand ambassadors you need, without bringing in costly brand consultants, marketing experts, or social media influencers. 1. Treat every single interaction with customers as a chance to reinforce your brand’s reliability and inherent awesomeness. This includes: marketing messages Emails deliveries billing statements and invoices Your website and social media customer service chats any feedback you encourage. 2. Use personalized experiences to differentiate your brand. You’ve got the data, so use it! Crunch the numbers, segment your existing and ideal customers, throw in their buying behavior and individual circumstances, and meet them where they are. As time goes on and you collect more data, adjust. And if you allow them to customize their subscriptions too, you’ll make the experience better. 3. Make the delivery and unboxing process special and memorable. On-time deliveries that feature interesting unboxing experiences, or personalized notes can encourage customers to share on social media. And then the main way to convert your happy customers to brand ambassadors? 4. Incentivize feedback and ambassadorship. There are so many options. How about: Creating a private community with special benefits for your top subscribers? Competitions for customer content on social media? Giving special ambassador status to true fans, complete with exclusive experiences? Awarding with redeemable points, and extra personalized support? Special status/incentives with other businesses that you work in partnership with? Providing access to new products and launches? No matter what options you go for, there’s one foundation that is ALWAYS essential to the creation of a brand ambassador. A happy retail subscription customer. You might suddenly balk at the idea of brand ambassadors because it sounds like so much work. How on earth can you get it all done? How to Make it All Possible, Faster and Easier Automation will give you exactly what you need to get it all done for you. The right software solution will deliver a personalized, consistent, exceptional customer experience. Here’s how: It harvests and analyzes your customer data to segment and create personalized offerings, pricing, and communication that speaks to the wants and needs of each customer. It smashes the silos between your teams that have historically caused invoice delays, contract term mistakes, missed sales opportunities, employee turnover from frustration, and crisis mode dealing with angry customers. It takes care of your billing, invoicing, payment collection, and reconciliation (while ensuring compliance). It identifies sales opportunities and feeds them to your sales team and customers at the optimal time. It enables customer self-service portals for customers who want to manage their subscriptions. It creates the framework for unique loyalty schemes including personalized data, purchase tracking, calculating usage and rewards, and automatic benefits and discounts. It relieves your operations and teams of all the time that’s wasted with manual financial, sales, and marketing tasks so that they’re free to focus on high-value work. That’s less cost for you. Each customer gets that level of service and that experience that excites them and doesn’t frustrate them. Their needs and wants are met. They feel valued and special because they are valued and special. And you’ll finally have those resources to show them, beyond all doubt. And the best bit? Your business can scale as much as you want with no additional anything needed. Curious to see how much things can change for you? Book a free Discovery Call with our team today.

12.11.2024 Retail

Personalization vs: Privacy: How Does a Subscription Retail SMB Win the Battle?

Can subscription retail SMBs strike the right balance between personalization and privacy? Personalization is essential to subscription customer CX and results in more loyalty, higher sales and reduced churn. But problems like data breaches and falling short of regulations like GDPR and CCPA are costly. This article talks through both sides and reveals what SMBs must do to get the best of both worlds. In this article: What is Personalization? What is Privacy? Can Retail Subscription SMBs Give Privacy and Personalization? Get It All With One Solution Conclusion A subscription retail SMB needs to grab every opportunity to stand out and differentiate itself. One of the options that some SMBs choose is giving a personalized experience to their potential and existing customer base. Personalization can be used in anything from marketing to offerings to terms and payment methods. Though it’s great for the customer, there is a downside. It brings privacy concerns. And subscription retail SMBs must understand the privacy challenge to figure out how to strike a balance. Without it, they stand to lose both financially and legally. This article will explore all the issues around the personalization vs. privacy debate, and how it impacts SMBs. It will also give insights on how subscription retail SMBs can enjoy the benefits of both. What is Personalization? Personalization is the process of harvesting and analyzing information from customer data to create experiences that are tailored to each individual customer. It involves data points including: Website/platform usage: What type of devices they used which features are most appealing, how they navigate the site, what repels them, etc. Demographics: Age, income, gender, culture, geographical location, family info, etc. Behavioral data: Purchase patterns, browsing history, what they engage with and what they avoid, preferred subscriptions and terms, etc. Time data: Seasonal info, active times of day, preferred days of the week, etc. Psychographic data: Customer interests, lifestyle preferences, and even emotional triggers. Platforms then take the information, analyze it, and create a unique experience for each customer. We’ve all experienced this process as customers. Received an email from a business that has your name on it? Get products tailored to your likes on a website? Ever abandon a shopping cart, then get a message that gives you a discount for all the items in the cart? Get an offer to re-buy something you’ve bought in the past? See products that you did some research on earlier in the week? That’s all personalization. And customers want and love it. 81% of customers prefer companies that offer a personalized experience. -Forbes Customers are far more likely to engage with brands that give them the personalized touch that’s unique to them. This gives subscription retail SMBs a huge opportunity to build that long-term relationship that they need for success. When personalization is used in the right way, it brings some incredible benefits to subscription retailers: Better Customer Lifetime Value: Running a subscription model demands long-term customer relationships. Retention is absolutely essential because it’s easier to sell to existing customers. They also spend more money. Better sales: Because the offerings, pricing and terms are personalized to what each customer wants and doesn’t want, the sales cycle is shorter. And as a retailer gets to know subscribers more, add-ons and cross-selling are more successful because they align with each customer’s preferences at the optimum time. So you’ll eliminate your lost sales opportunities. Better customer CX and loyalty: It’s not just about the CLV. It’s about what comes with a meaningful customer experience. Tailored loyalty and bonus programs further reward the customer and build the emotional bond with your brand. And happy customers become brand ambassadors. They tell other people through comments, message boards, content, and word-of-mouth in person too. Differentiation: Retail is so competitive; any advantage helps. When subscription retail SMBs show that they understand their audience’s needs every step of the way, they immediately set themselves apart from retailers that refuse to offer personalization. Less churn: When customers are engaged and get value from their subscriptions, they’ll stick around. Churn is extremely high in retail. Customers bounce all the time, for the smallest reasons, so it’s important to cut any reasons for them to leave. And that’s not all personalization does. Personalization brings benefits to customers too: It saves time and effort: Customers who sign up for personalized subscriptions see the terms and products that are relevant to them. They don’t have to spend time searching for the best prices or something more appealing elsewhere. They’ve already got it right in front of them, when they need it, for the price they’re willing to pay. Better engagement: When customers feel more attached to a brand, they’ll engage more. They’ll offer feedback. They’ll make suggestions. They’ll seek your brand out more often. They’re invested in your future because you make their present so much more pleasant. Feeling valued: Customers are bombarded with a million adverts and messages a day. Most of them are generic, and tossed out to the world hoping something will stick. That’s not how customers want to be treated. They want to be valued, not used. Businesses have jumped on the data-driven personalization bandwagon because it makes good sense. But there’s a downside. Some businesses do questionable or unethical things with their customer data, like selling it on to other companies that have less respect for the data. Or hackers break into systems and cause dangerous data leaks. And this creates serious privacy issues. What is Privacy? Privacy is not the use of customer data, but the protection of it. Privacy involves businesses not only taking steps to protect data but being completely transparent about how they collect and use the data. They also give customers the option of controlling whether their data is collected, and what can and cannot be done with it. Over 120 countries around the world have regulations that deal with customer data. The General Data Protection Regulation (GDPR) laws in Europe and the California Consumer Privacy Act (CCPA) in the U.S. are just two examples of strict rules that govern how personal data must be handled. When those rules are broken, there are steep penalties and potential lawsuits. And customers can completely lose trust in a brand overnight. So it’s a serious issue, even for the smallest subscription retail SMB. Let’s look at some of the specifics of ignoring privacy practices and regulations: Legal compliance: Data protection laws aren’t flexible or open to interpretation. They’re strict and if you fall out of compliance, it can cripple you financially. For example, if you breach GDPR rules in Europe, you’re liable for up to €20 million or 4% of your annual global turnover—whichever is higher. Vulnerability to data breaches and mass lawsuits: New reports on cyberattacks are a daily occurrence, even for big corporations. And SMBs that don’t prioritize their security are at clear risk of being targeted. The cost of a breach (both in fines and customer lawsuits) can be in the millions. Trust erosion and churn: As soon as current or potential customers catch wind that your brand is not to be trusted with their data, they’ll leave for your competition. Why would they stay? Customers are risk averse just like businesses are. Reputation: As an SMB, your reputation is everything. But customers spread the word about bad brands they don’t like. And legal problems always end up public, which your competitors can latch onto and exploit. On top of that, your reputation as investible might be damaged for good too. Understanding why they want privacy guarded simply reframes everything into what you can gain, and another level that you can give them that some of your competitors aren’t. Customers expect to be able to control their data. To have the ability to opt-out of cookies and data collection. To veto what it’s used for. To say no to marketing from your business or others. To be able to rescind access to data after permission has already been previously given. They don’t want the anxiety, financial loss, and legal exposure that a hack and breach brings either. Customers look for trustworthiness and transparency. They want to be told the truth about how their data is used. But here’s the twist. Knowing what both personalization and privacy are, as well as all the issues that surround them, leaves the subscription retail SMB in a precarious position. Where to go from here, armed with this privacy vs. personalization conuundrum? Can Retail Subscription SMBs Give Privacy and Personalization? Is the privacy vs. personalized issue a zero-sum game? Is it all or nothing for SMBs? The answer is a resounding no! Subscription retailers and their customers can enjoy both. It’s just about finding the right balance. Given that we work with subscription retailers, we understand what’s needed to get the most from data, but to protect businesses and their customers from those very real data privacy challenges. First, it helps to be transparent with your customers from the beginning. Be clear about what data you’re using and how you’re using it. This includes more questionable practices like selling data to third parties. There is no obligation for you to collect every single piece of data that’s out there. You can be selective too. Which data gives you and your customer the most value? What is the smallest amount of data you need to extract the most value necessary to effectively personalize? Secure the data with encryption techniques. They will be built into better software and platforms. Keep a running order of the steps you’ve taken to guard data privacy and protection too. Give your customers control over their data too. Let them manage their data preferences. The most common way of doing this is through pop-ups, dedicated data pages where customers can customize their choices, and tick boxes that must be completed to ensure customers read what’s involved. And always create a clear and effortless process that allows your customers to change their minds about data access and use. Get It All With One Solution If you want to get the best of both worlds without costing you more of your time and resources, you need a good subscription management solution that takes care of this for you. Here’s what you get with the right solution: It collects the right data while installing strict privacy protection. For example, your solution can gather demographic and financial information to segment customers and create individual offerings without using the most sensitive information. This gives you the personalization you’re after without violating privacy. Automatic compliance with something as important as data safety and privacy can feel like a dream. But it’s a reality! There are built-in compliance tools that take into account relevant data laws. The process works automatically. Nothing slips into the cracks. Because the best subscription management platforms provide dashboards and self-service portals, you can make all data information readily available whenever your customer wants to access it. You can even show how it’s being used and how it feeds into their personalization process. Free-flowing, reliable information builds trust. Your customers will be happier. Not only are they privy to clear, accurate information about their data, but they know what it’s for. They’re more secure and not worrying about the security of their data either. Plus they’re getting the personalized experience! That’s better satisfaction, higher incidence of loyalty, better brand reputation, and higher customer lifetime value. And – bonus – the right solution also brings you end-to-end subscription management to save you time and resources, while boosting your revenue while you scale. Conclusion Privacy and personalization shouldn’t be an either/or. They are both absolutely essential. And they’re both absolutely accessible. You just need the right solution. If you’re curious about how easily you can get the benefits of both, why not book a free Discovery Call with our team today.

10.10.2024 Retail

Top-Shelf Decisions: How Do Subscription Retail SMBs Get Them?

The wrong decisions can be disastrous. That’s why subscription retail SMBs feel so much pressure to impactful decisions. The problem is that guesswork and gut feeling aren’t enough of a foundation for consistent decision-making. This article explores the decision-making process, pitfalls, impacts and how proactive decision-making thanks to AI-driven solutions can both avoid mistakes and drive growth and sustainability. In this article: Good Decisions: What’s the Big Deal? Bad Decisions: Where Do They Come From? Where Bad Decisions Hit the Hardest The Impact of Bad Decisions on Subscription Retail SMBs The Secret to Good Decisions Is In Plain Sight AI-Driven Insights: How They Give You Everything You Need It’s So Easy Even the smallest of retail subscription SMBs requires daily decisions. Whether it’s deciding on a product, or what kind of social media campaign would work best, or pricing models, all your decisions as an SMB have an impact on the business, and your profits. There’s not a huge margin for error. But the problem is that many SMBs rely on inconsistent and unreliable methods to make their choices. And that can have serious ramifications. This article will talk about dangerous decision-making methods, and what happens when people get it wrong. Then it provides one solution that can take care of everything and give you the firm foundation you need to make the best decisions possible. Good Decisions: What’s the Big Deal? It’s hard to build a great business without great choices. The stakes can be very high- especially for subscription retail SMBs that don’t have a lot of wiggle room. Why? Because you need your customer relationships to be long-term versus one-off. But your choices could impact anything in the end-to-end subscription process including: how to acquire customers which offerings and pricing models how to personalize the experience which method to invoice what kind of payment options how which KPIs to monitor when to act on problems Let’s look at a decision about product offerings as an example. Make your offering broad, and you might attract more customers. But that makes logistics challenging. It puts more pressure on inventory management. And you might choose the wrong products. Customers who don’t like this new direction might leave. You could be stuck with tons of stock. And then you might panic (rightfully so, no one wants overstock!) and send out emergency buy-this-now marketing messages that haven’t been entirely thought through. In other words, bad decision-making brings huge challenges. Bad Decisions: Where Do They Come From? Nobody sets out to make the wrong choice. That’s why it’s important to have what you need to make the right one. But the resources and time of subscription retail SMBs are already stretched to the limit. How can you make sound decisions consistently? Let’s look at where bad decisions generally come from: Gut instinct: There are some brilliant business leaders who talk about creating a long-term career thanks to gut instinct. But they are the exception, not the rule. Feelings change fast. They’re based on fear, or impulse, or information that is flat-out wrong. This system isn’t reliable or scalable. Guessing: Without any relevant knowledge or intel, SMBs might be forced to guess which way to go. For example, they might guess how many units of a product will be needed for an upcoming holiday season. But they don’t really know what their segments want, what their competitors are doing, or whether current economic conditions will allow people to spend money on these products. Copycatting: There’s nothing wrong with checking out what the competition’s doing to adjust to it. But just because something works for them, doesn’t mean it will for you. Each business has unique circumstances and challenges. On top of that, what a business is currently doing is the result of past decisions. You’re copying history in an industry where everything changes within minutes. We’re not saying that these methods never work. But they’re not consistently good. Or sustainable. If your SMB is already operating with paper-thin margins, even one bad decision can take your business down. Where Bad Decisions Hit the Hardest The ripples of the wrong choices tend to flow the most into these areas: Customer acquisition and retention: If you don’t really know who your ideal and your current customers are, it will be hard to keep them. And you need them to stick around because you offer subscriptions. Offering: Your offering shapes your brand and your business. You need to know what customers want, when they want it. And you need to know what they definitely do not want. Prices: Subscription pricing models can be complex. But it’s essential to strike the perfect balance between affordability and profitability. Mistakes make customers run or cost you your bottom line. Marketing: Many SMBs don’t really know what will work over the long term. They spend a lot of time and money experimenting, hoping something will stick. Inventory management: It’s easy to make mistakes in inventory management because it is often the most difficult thing in retail to get right. There are punishments on both sides of the spectrum; overstocking and stock-outs. A nightmare either way. Whichever part of the business is impacted, it causes trouble. The Impact of Bad Decisions on Subscription Retail SMBs We work with a lot of subscription retailers. Generally, they come to us already stuck in a cycle of damage control and recovery. Here’s what they experience the most on a business level: Churn: When customers face a poor offering and pricing, bad communication, delays in deliveries, and late and incorrect invoices, they leave. Churn forces you to double-down on acquisition and retention costs. You may have to offer steep discounts to either woo customers back or tempt new customers to try your brand. Operational inefficiency: Manually processing invoices, or using siloed retail software, or not offering a wide variety of payments forces your team to have to work longer and more stressful hours. Your operations can get to a breaking point where they’re riddled with so many delays and mistakes, there’s no coming back without a huge investment that you might not have. Revenue loss: Losing money is serious for an SMB. Whether you’re overspending on customers, or you have revenue loss or leakage in your operations, you might trigger a debt cycle, or a stream of panic-led decisions that make things worse. And that’s not all. Poor choices personally impact you and your people too: Stress and burnout: It’s exhausting to constantly put out fires. The more prolonged the stress, the more likely you and your employees will suffer from burnout. That’s bad for their mental health and your bottom line. Self-doubt: No matter how brilliant you are at subscription retail, and no matter how much you care, a series of bad decisions can erode your confidence. Next thing you know, you’re hesitant to make any more decisions. Turnover: It’s really expensive to replace employees after they quit. None of these are ideal. Which begs the question, can this be turned around? If so, what’s the key to good decision-making? The Secret to Good Decisions Is In Plain Sight As a retail subscription SMB, you can get out of the cycle for good. And the solution’s closer than you think. It’s in your data. Most subscription retail SMBs collect lots of data that is woefully underused. Your sales data will tell you what works when. Which marketing compliments your offerings. How things like seasonability and trends impact you. Why customers say no, and what makes them say yes. Your customer data will show you who your current (and ideal) customers are. It will reveal all kinds of information from demographics to customer behavior, buying patterns, preferences, and circumstances. That’s the foundation of personalized experiences. Subscription data reveals lots of information. KPIs will show you how performance levels, and churn and ROI rates. They show what types of subscriptions and pricing models work best too. Sounds amazing, right? All that is needed is the right tool to consolidate and make the most of the data you have. But you don’t have to go to those expensive analytics platforms, or consultants. All you need is one solution. AI-Driven Insights: How They Give You Everything You Need AI-powered automation turns things around fast. In fact, it can be a game-changer. It pulls together all the data into numbers and insights that give you a clear idea of what’s going on in your business at any given time. And this works throughout the entire end-to-end retail subscription management process. Here are just some of the ways data works for you: Predictions: It looks at historical data, subscriber behavior, trends, and seasonal changes to predict future demand with a lot more accuracy. That cuts back on expensive overstock and stockout crises. Customer personalization: AI segments your customer base according to demographics so that you understand the kinds of people who are your target customers. It then uses data on behavior, preferences, and purchasing patterns to create a wholly personalized experience for each customer. Excellent pricing and boosted sales: AI makes the best recommendations for the optimum pricing at any given time. It also crunches the data to give your sales team the add-on, cross-selling and upgrading opportunities that save your sales team untold hours. And it speeds up the sales cycle and even offers self-serve portals for customers that want to manage their own subscriptions. Inventory management and fulfilment: When you have real-time visibility into your inventory, you stay both proactive and agile. Human error and guesswork are gone for good. You’ll have a better hold on your stock, cutting way back on the recurrence of stockouts or overstocking. Reporting: Because AI-data crunching brings you real-time financial data and insights, you can make the best decisions where and when they are needed. In an industry like retail where everything changes so fast, this is a huge advantage. With AI-driven analysis, your retail subscription SMB can finally move away from guesswork and to confidence. You can be proactive instead of reactive. Confident instead of nervous. On firm ground instead of unstable. And it scales. It’s relief from the pressure. It’s So Easy People who run SMBs shouldn’t have to struggle through decision-making. The last thing you need is the nightmare that guesswork brings to you, your team, and your bottom line. These days turning your data into powerful tools that back good choices is a necessity. Curious to see how fast you can turn things around? Book a free Discovery Call with our team today.

Are You an SMB with Small Budgets and Resources? Here’s How to Get More From Them

In this article:

The Challenges that SMBs Like Yours Face

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The Problem of Money

What Dynamics 365 Business Central + Bluefort Automation Does for You

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