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Leveraging AI to Skyrocket Customer Lifetime Value and Crush Churn
We love customers. And we want to make sure they love us.
It’s easy to make the mistake that success in subscriptions is about getting customers. But that’s only half the story.
We’ve got to keep them too. Customer loyalty and longevity is the lifeblood of success- which means we have to reduce churn if we want any chance of maintaining that steady stream of revenue.
The problem is that churn doesn’t always act like a flood. It can be stealthy. Like a leak in a boat that sinks businesses, where you don’t know you’ve got a problem until it’s too late.
It not only erodes the customer base and over time has a massive impact on the bottom line. Because churn is death- the stakes are that high.
So the solution needs to be that good. That’s exactly why AI has been developed in the subscription business industry. It’s the fastest, easiest and most cost-effective way to drive customer lifetime value and send churn packing for good. How’s it work? Here are a few ways AI helps managers boost subscriber lifetime value:
Helps make better decisions
Due to their recurring nature, subscriptions generate a lot of data: billing data, renewal data, financial postings, logistical data, entitlements etc. This is good news. AI tools don’t work without high quality training data. Predictive models evolve with more data, so overtime, the AI gets better. It can pinpoint subscribers most likely to churn, so that you can do something about them before they do.
Trend spotting
AI tools are perfect at spotting patterns or trends. You can feed your organisation’s subscription data points to spot any meaningful correlations which would otherwise be missed. They can also be used to verify or annul existing business mind-sets for example: is there a correlation between customers who are not using your all of your product’s benefits and churning customers? Is a high number of support cases an indicator of dissatisfied customers who might churn or an indicator of highly-engaged customers who are pushing your offering to its limits and helping you improve? Let AI help you answer such questions!
An enhanced user experience
The capabilities of AI are a surefire way to win your customers’ hearts because customers don’t just hope for it, they expect it.
AI tools (such as chat-bots) automatically analyze in-segment subscriber behavior, preferences, demographics and sentiment to create a tailor-made experience that fits each customer like a glove. Imagine if these bots are also tapping into your subscription data to inform customers about their active subscriptions, open support tickets, usage levels, next scheduled deliveries, upcoming renewals, etc. They can make special offers or help customers define the service they want for the upcoming contract period. A win-win both for your sales teams and for your customers.
Do you know a customer who doesn’t love feeling special?
The time they need to succeed
AI finally relieves your teams of some of the biggest, most time-sapping tasks they have.
Sales, customer service, and development teams might be amazing, but they have their limits if they lack the resources they need to manage subscriptions.
If they’re freed from tedious tasks, they’ll have the time to focus on future-proofing your business, like building nurturing customer relationships and improving new products and offerings. That’s why we’re passionate about the role of AI in unlocking customer lifetime value and reducing churn in subscription businesses.
No one should have to necessarily grind themselves into the ground with the day-to-day tasks of subscription management, and still suffer churn.
By using AI to deliver personalized experiences, anticipate churn threats and offer the best renewals, and give our teams the time they need to create lasting connections, subscription businesses will build a loyal customer base.
So, let’s embrace AI and bid farewell to churn once and for all!
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A Comprehensive Guide to Subscription Management
Cultivating Success: A Comprehensive Guide to Subscription Management for SaaS CEOs and CFOs In this guide: The Basics of Subscription Management Challenges in Subscription Management for SaaS Benefits of Efficient Subscription Management Subscription Management Best Practices Key Metrics for Subscription Management Integration of Subscription Management Tools Future Trends in Subscription Management What Bluefort Brings to the Table So you’re the CEO or the CFO of a SaaS company. You’ve been doing it a while, and your company has a brilliant product offering. Your customer base is growing. Things look pretty sweet, but there’s one thing that’s driving you crazy. A splinter in your finger. A fly in the ointment. It’s there, it’s annoying, and it’s not going anywhere. Subscription management. You might have winced at the thought of it. But in SaaS, it seems to be an inevitability. Though it can be tricky to sort out, when done right, subscriptions are a great way to bring in constant revenue. As a CEO or CFO, it's got too much potential to overlook. At its core, subscription management is just managing the lifecycle of an ongoing relationship with a customer or supplier, including everything from choosing the best pricing models, setting up accurate and reliable billing cycles, and - gulp- minimizing customer churn. But subscription management is nothing without an efficient framework because there’s no room for errors. The better you are at managing subscriptions, the more predictable your revenue, the more streamlined your operations, and the happier your customers. So let's do a deep dive into the world of subscription management and how it not only impacts your business but your role and performance as a leader in a SaaS company. I. The Basics of Subscription Management Before any problems can be solved, they must be understood. And like any kid who takes things apart knows, you have to break down those key components to see how it all works. With subscription management, the key components are subscription models, billing cycles, and pricing strategies. These are the foundation because each of these elements plays a critical role in shaping your customers' experience and your company's financial health. A. Key Types of SaaS Subscription Models There are options when it comes to types of models, and some companies like to offer combinations. Whichever way you go, they are important because they lure customers in and keep them coming back for more. There are three main SaaS subscription pricing models: Flat-rate Pricing: This is a fairly straight-up model - what you sign up for is exactly what you get. You charge a fixed price for your service, whether that’s mostly or annually. Though flat-rate is super easy, it doesn’t cater to different customer needs or varying usage levels. Usage-based Pricing: In this model, customers pay for your service according to how much or how little they use it. Though many customers prefer this because it’s both fair and flexible, it can lead to delays in billing and unpredictable revenue. Tiered Pricing: This is a complex model - you offer different pricing tiers based on the customer’s preferred features, usage, or number of users. Though this model is attractive to a lot of customers, it’s harder to manage. Some SaaS companies experiment or research to see which pricing works best for their customers. Some offer all of them or a combination. Either way, it can take a little time to figure out what fits comfortably. Next, let's look at the components of subscription management. B. Subscription Management Components From setting the billing cycles to determining the right pricing strategy and managing the customer lifecycle, each of these is crucial to get right so that you keep subscriptions running smoothly and keep those customers pleased and coming back for more. Billing Cycles Billing cycles are key - they determine how often your subscription customers will be charged, whether weekly, monthly, quarterly, or annually. Deciding which cycle is best really depends on your customers. Offering flexible billing cycles are mort likely to please more people and bring in more regular cash flow. Some customers prefer small and frequent payments, and some like whopping big chunks. The drawback is that when you have to manage multiple billing cycles, it burdens your subscription management process. It also makes revenue forecasting more difficult because the timing and the amounts of revenue are always in flux. Pricing Strategies It goes without saying that pricing strategies are extremely important to everyone involved. Pricing reflects the value your products provide but take into account things like competitor offering and pricing, market leverage, brand strength, and your development and operational costs. When a pricing strategy is well thought out, it’s a powerful tool to tempt and keep customers. And you can segment your pricing strategies to cater to your customer groups. Of course, it can be hard to figure out which prices will work best. And experimenting can be costly and waste of time. You need a deep understanding of your customers, competitors, and the market, and this understanding can only come from hard data. A lot is at stake - underpricing leaves money on the table, overpricing can send potential customers into the proverbial arms of your competition, and changing too fast is confusing and damaging to your reputation. Customer Lifecycle Management In the SaaS sphere, it’s far preferable to keep your customers than to try to gain new ones. That means a customer’s experience with your SaaS business must be consistently good and meet their needs. Otherwise, why would they stay? Retaining customers through customer lifecycle management demands you oversee everything from sign-up to renewal. This includes things like: onboarding providing ongoing customer support when it’s needed handling upgrades or downgrades disputes and billing managing renewals When customer lifecycle management is impactful, you can drive excellent customer satisfaction and retention. All that is required is a seamless onboarding experience, timely and effective support, and easy upgrades or downgrades (no pressure, right?). But all this requires a lot of investment of time and resources. It also requires knowing your customers’ fluctuating needs, what they prefer, what they use, and their behaviours at every stage of the lifecycle. These are the basics of what subscription management is. Though subscriptions can be your company’s best friend, they also bring big challenges that must be negotiated. II. Challenges in Subscription Management for SaaS No matter how brilliant a CEO or CFO you are, managing subscriptions is no walk in the park. And you're not just expected to navigate or eliminate these challenges, but to turn these problems into opportunities for growth. Each of these challenges can seem overwhelming, but start combining them together, and you can have a bit of a mess that makes your job a lot harder (don’t worry, we’ve got some solutions later on!). We work with a lot of subscription-based SaaS businesses, and these are the things that plagued them most: Operations There are a lot of plates to keep spinning in the subscription management cycle - from sales pitches all the way through to payment reconciliation and reporting. It takes up a lot of time and causes a lot of stress to keep up with. At worst, it can force you to be in damage-control mode, putting out fires and fixing mistakes. This can have a knock-on effect with other departments too. Revenue Recognition Complexities Consistently and completely recognizing revenue from subscriptions is a herculean task. You’ve got to know what you’re doing at all times with upfront payments, discounts, refunds, and cancellations, all while sticking to accounting best practices and standards. Churn Churn will always be a major concern for SaaS businesses. There is so much competition doing everything they can to lure your customers away. That’s why it’s crucial to strategize to cut churn down as much as possible and keep existing customers over a lifetime. Knowing your customer is key to this, but it’s an intensive research process with little room for error. Forecasting and Reporting Because so many subscriptions are recurring, and because churn can be so high, it can be very difficult to know where your revenue stands at any given time. This makes reports and forecasting needed for sound financial decisions nearly impossible. Regulatory Compliance Concerns Being on the wrong side of compliance can be an expensive nightmare that damages your reputation. But SaaS businesses have so many regulations to deal with across their business including data privacy, security, financial reporting, etc. Not only that, but regulations change, and they vary from region to region. Scalability All these problems are magnified the more you grow. Through time you’re handling a lot more complexity in managing multiple subscriptions, diverse pricing models, and varying billing cycles. And most likely you’re doing this on legacy systems. It’s quite a list. But these problems are not insurmountable. In fact, all of them are solvable. But for now, let’s have a look at everything you have to gain from an efficient subscription management system. III. Benefits of Efficient Subscription Management Though SaaS is complex and always in flux, there is one constant- the need for efficient subscription management. And when you get it right, it is worth it. And when it’s effective, it’s more than just keeping track of who is subscribed to what and for how long. It’s about leveraging these subscriptions to drive growth and improve customer experience. One of the best benefits of efficient subscription management is improved revenue visibility. Because, in a subscription model, revenue trickles in over time, making it hard to both track and predict. When you’ve got an efficient subscription management system in place, you’ll get the clarity you need in recurring revenue, which is part of monitoring your financial health and making good future decisions. Efficient subscription management isn’t just about numbers; it’s about people too. It can make your Customer Experience so much better because you can give both flexibility and convenience. They get accurate billing on time, clear communication, and choice. What customer would leave when they’re enjoying all this? Efficient subscription management can also streamline financial operations. Billing is a four-letter word in the SaaS world with its pricing models, discounts, offers, new products, usage, and billing cycles on top. But the right efficient systems that specifically target the end-to-end, frees up financial resources and tightens up operations. That’s how you get optimized performance. Lastly, efficient subscription management can offer regulatory compliance advantages. Though compliance can be a challenge, taking steps to tackle compliance benefits you. Providing robust security features, maintaining detailed records, and facilitating accurate reporting only strengthens your brand. Of course, to reap these benefits demands a well-designed system that takes into account both your business needs and market conditions. And that's where the best practices come in. IV. Subscription Management Best Practices What are the best practices that can take you toward efficient subscription management? Automated billing system It’s a fact- manual billing processes are time-wasting, error-prone, and not scalable. But automation streamlines everything including your billing process. It cuts down on mistakes. It feels up valuable time for strategic tasks. Subscription software that has been specifically built for this will handle all your tasks, from managing different pricing models and billing cycles to issuing invoices, tracking and processing payments, and reconciliation. At its best, it can offer you complete revenue recognition and provide you with accurate revenue numbers at any hour of the day. It can also automate renewals, preventing service interruptions and maintaining steady revenue flow. Moreover, subscription billing software can provide valuable insights into your billing data, helping you identify trends, spot issues, and make informed decisions. Flexible Pricing Strategies Adopting flexible pricing strategies is another great best practice. With all the competition out there, adopting flexible pricing strategies will give you a huge advantage. You’ll be able to meet diverse customer needs and preferences. Your flexible pricing strategies can include any of the pricing models, and add to that usage-based billing, which caters to your customer segments wherever they are and whatever they need. One caveat- your pricing strategies (especially if they offer usage billing) will need resources to make sure billing stays accurate and on time. Customer Retention Strategies It’s important to do what you can to cut down on churn- it’s a crucial aspect of subscription management. These strategies can include: personalized customer engagement offerings that meet their needs add-ons and cross-selling with their preferences in mind understanding your customers' needs and preferences tailoring your communication servicing accordingly It can also include proactive churn prevention, which involves identifying at-risk customers and taking steps to address their issues before they decide to leave. But even at those optimum levels, these best practices are not a one-size-fits-all solution. You’ll have to tailor them to your business, market conditions, and customer needs. V. Key Metrics for Subscription Management Key Performance Indicators (KPIs) are a wonder. They give you a snapshot of where your financial health and growth stand, which gives you the knowledge you need to adjust to make things better. So what are the metrics that will be most useful for you to know to guide your business strategies? 1. Monthly Recurring Revenue (MRR) This is one of the most important. MRR is the predictable revenue that your company expects to receive every month, to measure the stability of the company's revenue stream. It's calculated by multiplying the total number of paying customers by the average revenue per user (ARPU). When you know your MRR, you can track sales and churn over time, and make informed future-focused decisions. 2. Customer Lifetime Value (CLV) CLV is the total revenue your business can expect from a customer throughout your relationship. CLV is calculated by multiplying the average purchase value, the average purchase frequency rate, and the average customer lifespan. Improving CLV helps you plan your marketing and customer service efforts more efficiently so they can target high CLV segments to maximize your profitability. 3. Churn Rate This is the rate at which customers leave your subscription service within a year-long period. It helps you gauge customer loyalty. When you know your churn rate, you’ll be able to better spot problems with factors like your product quality, customer service, or pricing. It equips you to take proactive steps to stop churn, and serves as a progress monitor for customer retention and satisfaction. 4. Customer Acquisition Cost (CAC) CAC provides insight into the cost associated with convincing a potential customer to buy a product or service. It includes costs spent on marketing and sales efforts divided by the number of customers acquired in the period the money was spent. A high CAC can be a concern as it could mean lower profitability, especially if the CLV is not significantly higher. Companies should aim for a lower CAC, while simultaneously working on strategies to increase CLV, leading to increased profitability. Understanding these key metrics is just the first step. You also need the right subscription management software to do the problem-solving for you. But where to begin? VI. Integration of Subscription Management Tools It’s the integration of good subscription management tools that will make the biggest difference. These tools not only streamline your operations- but they also give you valuable insights that can push the growth of your business forward. Selecting the Right Subscription Management Software You might feel a little lost in picking the right software for you. Don’t worry, that’s common- after all, there’s a lot of choice out there! There will be essential features that you need to look out for: automated invoicing and billing flexible pricing options free-flowing information between sales and financial teams revenue tracking a variety of payment gateway support customer management capabilities financial reporting and forecasting data and analytics awareness of compliance requirements robust data privacy And it’s important to look out for software that is intuitive, easy to understand and operate by your team (and customers when applicable). And the software should provide great onboarding and customer service Considerations for SaaS Businesses For SaaS businesses have a special consideration to add on top: scalability. There’s no point in bringing in the bells and whistles if you still can’t keep up when you scale. Good software can handle a growing base and more, complex transactions. t should also integrate seamlessly with your existing systems and customer support tools, providing a unified platform for managing all aspects of your subscription business. Integration with Existing Systems With some software platforms, it is possible to integrate into your existing systems like CRM and accounting, and customer service tools. But one thing is important here: when you’re after the best result, you need to give subscription management software the best foundation. Choosing the best software for your system provides a more cohesive view of customer data. It also streamlines financial reporting and delivers the best customer service. Integrating with Customer Relationship Management (CRM) software will let you consolidate your legacy data. This gives you a 360 degree view of the history of your customers, their behavior, preferences, segmentation, needs, and and interactions. This enables you to offer the personalised experience that customers love. When the subscription management tool is compatible with your accounting software, you’ll get effortless financial reporting and tax management. You’ll get accurate insights into your company's financial health and help in strategic decision-making. Integrating your tools is an extremely impactful subscription management. There’s one last thing to consider when thinking about choosing subscription management software: what’s coming up in the near future. VII. Future Trends in Subscription Management You’re in SaaS, so you have a crystal-clear understanding of how important it is to stay ahead of the curve with a forward-thinking approach to everything. That means having a good idea of what lay ahead. Let's delve deeper into two big trends and how they will transform the future of subscription management. A. Artificial Intelligence in Subscription Analytics AI is poised to change everything in subscription management. Its ability to harvest, process and analyze vast amounts of data quickly and accurately opens up a whole world of possibility. The more we know about customer behavior, the better we can predict trends, and tailor product development to target their needs. That makes investment ROI go through the roof. But it’s not just helpful on the product side. One key area where AI stands out is in predicting customer churn. AI can look at behavior and usage, and flag up early warnings about customers who are likely to cancel their subscriptions. This lets you proactively engage with them, bringing them back into the fold before they leave. That’s a lot easier than trying to tempt them back after they’ve signed up for your competition. Furthermore, AI can also optimise your pricing strategies by analyzing factors like market trends, customer demand, and competitor pricing. Finally, AI gives you segmentation on steroids. It can use a lot more data points to really narrow down those segments which means you can give people the most customised offerings and experience possible. Boom- that’s more engagement and conversion for you. B. Personalized Subscription Experiences Building on AI, personalisation deserves its own focus too. Customers are extremely fickle. We know this because we’re customers too. We all understand how tempting it is to jump ship as soon as someone gives us a tempting offer- especially if we have no loyalty to the business we’re currently with. And that fickleness has forced SaaS companies to personalise the customer experience as a way to emotionally engage with them and increase the likelihood of them staying. And this has resulted in the highest rate of customer expectation ever. Personalization is rapidly becoming a non-negotiable element of any type of subscription. Customers want services that cater to their individual needs and preferences. And businesses can struggle to keep up without the right tools to offer things like: customized content and marketing tailored products pricing plans based on each subscriber's usage patterns soliciting and using feedback personal data for recommendations Businesses that offer a radically personalized experience will boost customer satisfaction and loyalty, improve retention rates, and increase their overall Customer Lifetime Value (CLV). VIII. What Bluefort Brings to the Table Bluefort has a globally proven end-to-end subscription management solution made specifically for your needs. Streamlining processes and leveraging automation is at the heart of what we do. It determines the best pricing models and spots the most effective upselling and cross-selling opportunities based on individual customer preferences and buying patterns. From onboarding new subscribers to managing renewals and handling tier upgrades, we’ve automated and simplified these tasks for optimal efficiency and precision. Billing is a pivotal aspect of the subscriber’s lifecycle, and we’ve got it covered. Our automated subscription billing ensures timely and accurate invoicing, while our integration with various payment gateways, including Stripe and GoCardless, offers both flexibility and security for all transactions. It crunches and analyses data to give you reports and forecasts, empowering you to make the best decisions. And - this will be music to your ears - it completes recognized revenue. You will be fully equipped to do the job you were hired to do. No more getting left out on the ledge, hanging on for dear life. How you fit into it We understand the tremendous pressure you’re under because our CEO and CFO have been there. You’re in charge of all your staff, the day-to-day of everything, the revenue, and the future health of the company. And you’re the one who must stand in front of a board or stakeholders and explain why things are the way they are. Even if it’s not your fault, the buck always starts with you. And the most frustrating thing about all this responsibility is that without the right tools to keep things running, you are stuck in a damage-control limbo. You can’t do any of the high-value strategies and tasks that you were hired to do. All the amazing and innovative ideas you were hired for? They’re stuck in an indefinite holding pattern. The whole situation is terrible for your blood pressure. It’s terrible for morale. And it’s terrible for your reputation. No one needs it. This is why the best subscription management software is the best option. Not only does it bring the benefit of reliable revenue streams and a broader customer base, but it gets your name out there. It shows the world (and your competitors) exactly what you have to offer. Software that integrates into your business, monitors those KPIs, and keeps your entire end-to-end subscription management ticking over for you will give you a huge advantage. You’re a SaaS business. You understand how essential cutting-edge technology is for success. Why not give yourself the same upper hand your products give your customers? You have nothing to lose except wasted time, resources, and customer churn. You can position your subscription business for driving the returns that your investors expect along with sustained success in the years to come. Say goodbye to manual sales processes and boost your growth with Bluefort's cutting-edge automation solutions. Learn how our end-to-end system streamlines the end-to-end process.
Embrace the Joy of Missing Out
How E-Commerce C-Suite Executives Can Revolutionize Their Business with Subscription Models Are you tired of the constant stress and challenges that come with your e-commerce model? There’s a solution that allows you to experience the Joy of Missing Out (JOMO) on all those problems that keep you up all night. In this article, we'll explore how a subscription model with subscription billing might be the solution you’re looking for. So we’ll do a deep-dive into the problems you face, what subscriptions have to offer you, and how there are solutions to the hesitations you might have about subscriptions. Why JOMO, Not FOMO? Before diving into the details, we wanted to focus on JOMO instead of the more common Fear of Missing Out (FOMO). It’s quite simply this - we like to offer solutions, not problems. We believe in showing you what you can be freed from and how amazing that can feel. By helping you embrace the joy of missing out on the problems associated with your current e-commerce model, you’ll be empowered to make informed choices that will benefit your business in the long run. Your Headaches As someone running an e-commerce business, do any of these sound familiar to you? Unpredictable revenue: Your business relies on one-time purchases, which makes revenue less stable and much harder to forecast. You might also struggle with pricing strategy. It’s stressful because unpredictability is not good for decision-making and long-term planning. Lower customer retention: Customer retention is a struggle because one-time purchases mean lower customer lifetime value and higher marketing costs. Difficulty in differentiating from competitors: In a crowded e-commerce space, it’s difficult to stand out from the competition. How do you offer a sense of exclusivity that brings and keeps customers? Inability to build a community around your brand: A sense of community is tough to build with one-off customers. This can limit your brand's growth because communities create word-of-mouth and brand advocacy. Struggling to maintain consistent cash flow: You handle inconsistent cash flow, which scuppers future investments and budget management. Vulnerability to seasonal fluctuations or economic downturns doesn’t help. Fortunately, you can be freed from all of these with the power of a subscription model with regular billing, whether you fully switch or do a hybrid model. Subscriptions bring you the joy of missing out on your problems. Bluefort's end-to-end solution, helps you address all your subscription management challenges, through the power of automation. Benefits of Subscription Billing Besides the amazing feeling that missing out on those challenges can give you, let’s look at the individual benefits that your e-commerce business can enjoy from a subscription billing model. Predictable revenue: Subscription models generate recurring revenue, giving you a stable and predictable cash flow. This means you can make better decisions about investments, growth, and resource allocation. Improved customer support and customer retention: Customers are more likely to stay loyal when they’ve invested in a recurring service and have an ongoing relationship with the business. This means lower customer acquisition costs and the added bonus of free word-of-mouth marketing. Increased customer lifetime value: You can take a good customer ROI and kick it up a notch further by enjoying a higher customer lifetime value. Focus on customer retention and satisfaction and you’ll watch your revenue grow while missing out on the stress of chasing short-term sales. Tailored offerings for your customers: You can create and offer the personalised experiences that customers demand. They’ll love you for it and you get an advantage over the competition. Win-win! Easier upselling and cross-selling opportunities: When you offer subscriptions, you already have a captive audience that’s engaged with your brand. So it’s easier for you to introduce new products or services and upsell or cross-sell to your existing base. Your e-commerce business can be more resilient, customer-focused, and profitable. So, why wait? The Importance of a Subscription Billing Strategy A subscription model needs a solid subscription billing strategy. It’s not just a smart move – it's essential for long-term success. That requires a solid strategy that not only helps you optimize pricing and increase customer retention, but also improves cash flow and fosters stronger relationships with your customers. Optimizing pricing - One of the most critical aspects of your subscription billing strategy is determining the right pricing for your offerings. By investing time and effort into researching your target audience and testing different pricing structures, you can find the sweet spot between affordability and profitability. Everyone’s happy with the right price. Reducing churn and increasing retention - Who likes to see their hard-earned subscribers walk away? You reduce customer churn by consistently delivering value and addressing any issues that may arise. That means more revenue. Improving cash flow - A well-planned subscription billing strategy delivers recurring revenue. It’s easier to budget, invest in growth, and allocate resources. Enhancing customer experience - A well-crafted subscription billing strategy makes sure customers get an excellent user experience. This keeps them engaged but also encourages them to spread the word. Gaining a competitive edge - The strategy should differentiate you from competitors and position your brand as a leader in your industry. Key Considerations for a Successful Subscription Model Of course, you can’t just snap your fingers and WHAM, you’ve got the subscription model churning away. E-commerce brands that run subscriptions have key considerations that need to be thought about and included. Understanding their target audience: It all starts with knowing who you're serving. Dive deep into the needs, preferences, and pain points of your ideal customers to create tailored subscription offerings that resonate with them. The better you understand your audience, the more successful your subscription model will be. Defining pricing and billing terms: Finding the sweet spot between affordability and profitability is crucial when it comes to pricing your subscription offerings. Take the time to research and test different pricing structures and billing frequencies to determine what works best for your target audience – and your bottom line. Creating a seamless user experience: Nobody likes a clunky online experience, right? Make sure to design a smooth and intuitive customer journey, from signing up to managing their subscription. A positive experience with your brand will keep subscribers coming back for more and singing your praises to others. Implementing effective customer support: There's nothing quite like feeling heard and understood when you have an issue with a product or service. Providing timely and empathetic customer service is essential for fostering trust and loyalty among your subscribers. Remember, communication is key, and your customers will appreciate it! Regularly evaluating and refining your offerings: The e-commerce landscape is constantly evolving, and so should your subscription offerings. Keep a finger on the pulse of your customers' needs and preferences and be open to making changes and improvements based on feedback. This adaptability will not only keep your subscribers happy but also help you stay ahead of the competition. The great thing is those key considerations will set you up for success because they’ll turn into your guiding principles. Of course, you might be thinking, “Not so fast. A subscription model isn’t a bowl of fries with ketchup on the side while I’m sitting in 25-degree sunshine next to a pool. It’s not perfect.*” You’re right. It does have challenges. Facing the Challenges Head-On So, while the benefits of subscription billing are pretty enticing, there are some challenges. But that’s exactly what you’d expect on the journey to greatness. Challenge 1: Managing customer churn: It can be an obstacle in subscription-based e-commerce, and there are a variety of reasons, including mistakes, missed opportunities, not understanding customer wants and needs, and products that don’t target or solve their problems. Challenge 2: Navigating complex tax regulations: Intricate tax rules vary across regions and countries and can muddle things. Compliance can be daunting and it’s a high-stakes situation. Challenge 3: Scaling your subscription business: When the subscriber base grows, so do demands on your time and resources. That means investment, higher costs, and less on the bottom line. Before you run for the hills (or at least click off this article), we’ve got to point out that these challenges are easily get-aroundable. The solution is simple. So that joy of missing out is still way within your grasp. *Confession time - fries by the pool is not the kind of joy of missing out that we’re down for. To overcome these subscription challenges, you need one thing. The right tool. And that’s automation. The Role of Automation in Subscriptions It’s the tool that kicks all the joy of missing out into uber mode. Harnessing the power of automation in your subscription-based e-commerce business can streamline processes, reduce errors, and help you focus on what really matters – your customers. Here’s just a few of the ways how automation enables the subscription model: Automated billing and invoicing: Manual billing and invoicing are gone! Automation generates and sends accurate and timely invoices to subscribers. How many hours will that free up for your business? Efficient customer communication: Subscribers stay informed, engaged and connected to your brand with personalized emails, notifications, and marketing messages. Accurate tax and compliance calculations: Fear of regulations is a thing of the past because compliance is part of the beauty of automation. Reliable, easy-to-access figures make everything easy to calculate and follow. Streamlined subscription management: Automation tools free you from tasks like updating payment information, processing cancellations, and handling upgrades or downgrades. It recognizes revenue too. Data-driven insights: Automation collects and analyzes data on your subscribers giving you valuable insights into what they want and need, when they want it. Automation in your subscription-based e-commerce business saves your time, resources, streamlines processes, maximises revenue opportunities, and creates an enjoyable experience for your customers. Then bottom line is this. You deserve to miss out. You deserve to miss out on the challenges, costly mistakes, and headaches that keep you up at night. Experience the joy of freedom to not only grow, but have the time and extra resources to pursue the vision you’ve had for your company. 86% of consumers will leave a brand they trusted after two bad customer experiences. - Emplifi So if you’re looking to give your subscribers the best possible experience (and reduce churn!), make sure personalization is at the top of your priority list—it could be the difference between success and failure. And if you give these SaaS customer personalization tips a try, you’ll be on track to providing them an unforgettable experience that keeps them coming back for more.Ready to streamline your processes, reduce errors, automate your subscription management operations, and finally focus on your customers?
Are You Sabotaging Your Company’s Success Without Knowing It?
The Surprising Ways Businesses Can Be Self-Destructive Your company might be its own worst enemy. It’s a big thing to say, but it’s true. Just like individual people, organizations can fall into patterns of self-sabotage and self-destruction without even knowing it. And this tendency doesn’t have to be a huge and obvious one-off crash and burn. It can be like a drip, or a chipping away, that you only notice after your company or the circumstances that it’s in are unrecognizable. How do we know when our company is acting against its best interest? A look at why companies act this way, and some hard-hitting questions can help with the answer to the question– Are we sabotaging our own success? The Hidden Face of Self-Destruction Self-destruction doesn’t RSVP before it shows up. So it can be hard to identify. We often think of self-destructive companies as those that fail to learn from their mistakes, refuse to try new things, or consistently ignore opportunities for growth. But have you ever considered that self-destruction can also manifest as fear of failure, fear of success, feeling unworthy of accomplishments, or even refusing to invest in the company's future? With Bluefort's end-to-end platform, you can streamline and automate your processes to ensure your business thrives and succeeds, as it grows. It's time to take a closer look at how these behaviors can hold businesses back and ask ourselves: are we unknowingly contributing to our own demise? Why Do Companies Engage in Self-Destructive Behavior? We need to first realise that people make decisions based on emotions and experience. Even people who pride themselves in being “numbers people” are that way because numbers make them feel safe and secure. There’s nothing wrong with it- we can’t help it. We’re emotional beings that have, since we were first around, tackled the most emotionally-driven instinct that there is - survival. So what are these emotions that can make us act for our business in a way that goes against our interests? One of the primary reasons behind self-destructive behavior is fear. Fear of change or failure can paralyze any worker in any company, preventing them from taking risks, seizing opportunities, or trying something new. This doesn’t mean that fear is bad. Our minds are often trying to protect us. But if that fear becomes paralysing, then we lose confidence in ourselves to be able to find solutions. On the other hand, fear of success can also hold businesses back. Any wins that a company might get put on a lot of pressure. They realise they will have to keep doing better. Keep pushing, keep winning. That can be too much if they haven’t got the foundation to do better. So they stop the fight to the top and stay where they are. Another common one is unworthiness. This might sound a bit woo woo, but people strive for what they feel they deserve. Maybe decision-makers don’t feel they’re ready yet. Maybe they think they can’t handle engaging with their competition. Maybe they can’t picture themselves as truly successful. You can’t grab the brass ring if you think you don’t deserve it. But what about stubbornness? Many organizations cling to familiar practices, unwilling to embrace change or innovate. This resistance can come from misplaced priorities, such as going for short-term gains over long-term growth. Or valuing tradition over progress. Or hiring people (and keeping them) for the wrong reasons. It all comes from a need for the feeling of safety combined with seeing the world for what they wish it was, not for what it is. And our world is constantly in flux. Case in point: Blockbuster were once THE go-to spot for movie nights, but their fear of change ultimately led to their loss of the market. When digital streaming started gaining traction, Blockbuster couldn't let go of their brick-and-mortar business model. The leaders who were able to make decisions hesitated to understand that change is inevitable. And they lost faith in their ability to innovate again, in the amazing way that led to their success in the first place. If any of these sound familiar, you might be operating your company from a place of self-destruction. No judgment here - we all face this struggle at some point or another. But what can you do to stop the ship before it hits the proverbial iceberg? Breaking Free from Self-Destruction: Embrace Change and Confront Your Fears The hardest part is acknowledging that your company’s self-destructive behavior exists and has to change. But that’s the beautiful thing about acknowledging it - then you’re free to tackle it. Once you've identified the patterns holding your company back, you can begin to address them head-on. Embrace change and innovation: It’s scary to change. It can be terrifying. Change is so hard that psychologically the gain must be THREE TIMES the benefit of what it costs us to make the change in the first place. But we can’t let stubbornness or fear of the unknown hold us back. Encourage your team to think outside the box, explore new ideas, and challenge the status quo. And then give yourself and your teams the time to put these things into practice. Foster a culture of continuous learning and improvement. Failure is not only an opportunity for growth and learning, and it is PART of the process of a company’s growth. It’s only a setback if you don’t learn from it. Confront your fears: Whether it's fear of failure, success, or unworthiness, these emotions can be powerful drivers of self-destructive behavior. Recognize and confront these fears, understanding that they are natural but should not dictate your company's actions. Figure out where the fears come from (there’s always a source) so that they can be addressed. Embrace vulnerability, and consider seeking out potential partners and collaborators from companies who have experienced what you have. They get it. And remind yourself that every organization faces challenges and uncertainties- it's how you respond to them that truly matters. Have more faith in yourself, your team, and your company: Figure out what success means to your company and then create an environment that gives you the best chance to get it. That means reevaluating the company’s priorities, goals and practices. Hire the right people - diverse people with a wide variety of experiences, and who share your vision and possess the skills, creativity, and adaptability needed to drive your company forward. Foster a growth mindset, getting everyone to ask the question- what can we do better. You can figure out the solutions you need to your challenges as long as you know what to do and where to get help when you need it. Invest in your company's future: Sometimes investing in ourselves is one of the most difficult things to get used to. But overcoming self-destructive behavior often requires investment, whether it's in employee training, technology, or research and development. You have to be willing to allocate resources toward initiatives that will promote your safe, long-term growth, even if it means sacrificing short-term gains. You are worth it. Your company is worth it. Moving Forward: Building a Resilient and Thriving Organization Breaking free from self-destructive patterns is not an overnight process. It will require self-awareness, commitment, and a willingness to confront the fears and behaviors that have held your company back. And to not fall into the trap of getting angry with yourself or judging yourself about what your company has done in the past. It’s okay to ask those tough questions. And then give yourself the grace to grow- it’s part of life. When we know how to do better, we do better. That’s really what it’s all about. Once you go forward with awareness of which emotions are in charge of your decisions, you can guide yourself to taking action in a way that makes your business thrive for the future. 86% of consumers will leave a brand they trusted after two bad customer experiences. - Emplifi So if you’re looking to give your subscribers the best possible experience (and reduce churn!), make sure personalization is at the top of your priority list—it could be the difference between success and failure. And if you give these SaaS customer personalization tips a try, you’ll be on track to providing them an unforgettable experience that keeps them coming back for more.Want to see how you can gear up your business for success, through streamlined processes and automation, with Bluefort's solutions?
Unlocking Subscriber Loyalty: The Power of Personalization in SaaS
There are so many things that make some SaaS subscribers disappear. It feels like fighting a losing battle. After all, you can work on everything you can think of to stop churn, but one deal from a competitor, and that customer is gone, possibly for good. But there is one thing that is in your control. One thing that SaaS customers love. One thing that keeps them coming back for more. And it’s something that can be really easy to do. Can you guess what it is? Just make it personal. 73% of customers says experience as an important factor in their purchasing decisions, just behind price and product quality. - PWC 66% of consumers expect brands to understand their individual needs. - Salesforce You want your SaaS customers to feel special and appreciated. Because when they do, it’s gold for you. Happy customers are loyal. They stay for the long-term. Of course, you have to get that personal UX right. There’s no room for guesswork or error here. So how can you ensure that your business, your people, and your product or service meets each customer’s unique needs? It feels like a huge ask. The good news is that we work with many SaaS companies who have hundreds and thousands of subscribers, all with their own needs. We’ve heard it all! And we know which tips really help. So here are some of the best to help you with customer personalization. Ready? The Macro Tips There are the bigger, more institutional things your SaaS company can do to personalize your customer experience and boost satisfaction and loyalty. 1. Embrace data-driven insights Make use of the data you have! When you leverage subscriber data points such as purchase history, demographics, and behavior profiles, you can create more tailored experiences for each user. This could range from finding out what type of product or service a customer is interested in to offering personalized discounts and promotions. 66% of consumers will share personal data to elevate customer experience. - Harris Poll 2. Use AI technology Artificial intelligence (AI) technology can be used power tasks such as managing customer support tickets and creating and sending personalized recommendations. Imagine never having to do that again! This frees up valuable time for your teams to focus on the complex issues that need human intervention. 3. Invest in personalized content Offer tailored content based on each user’s interests or preferences. It’s far more likely to encourage engagement, conversion, and sharing. For example, if a customer has already bought a subscription to a specific feature of one of your SaaS products, you could create content that helps them increase the value they are achieving. 4. Take advantage of automation With the right software, all those soul-sapping tasks like sending follow-up emails or tracking customer interactions will be completely automated. This will save your team time and ensure that your customers get a consistent, personalized experience. With Bluefort's end-to-end SaaS software platform, you can streamline your processes and take automation to the next level, to effortlessly personalise your customer experience. 5. Track customer churn Use analytics tools to track customer churn. It’s important to figure out what customers love and what makes them run. Often the answers will shock you! 6. Knock down your silos This is a big one that most SaaS companies overlook. Silos kill SaaS customer experience because they lead to inconsistent messaging, mistakes, and a lack of understanding of the customer's needs. We’ve all been there as customers – on the phone, on hold forever waiting for customer service, only to have customer service not have our details (or even worse, have the wrong details!). It’s frustrating and such a turn-off. It’s a massive lost opportunity for loyalty. 76% of customers expect consistent interactions across all departments. - Salesforce The Micro Tips We believe that sometimes it’s the little things that make all the difference, especially when it comes to bonding with people. So here are four practical, small ways to increase your SaaS customer personalization for results that matter: 1. Use a customer’s name It might seem like a small thing, but addressing a customer by name can make a big difference. People love to hear their names - hearing it grabs their attention and activates the core identity part of their brain. Phone calls, emails, responding to a support ticket, sending an offer - using their first name instead of a generic greeting can help build rapport and make the customer feel valued. 2. Offer personalized discounts When you offer discounts based on a customer's purchase history, interests or browsing behavior, you show that you're paying attention to their needs. For example, if a customer has been looking at a particular feature/product but hasn't bought it yet, create a personal offer for them. This shows them you understand them and can encourage them to convert. 3. Customize your communication channels Different customers like different channels. Find out if they prefer email, phone or live chat and use that channel for communicating. This can help make the customer feel more comfortable and engaged with your product or service. 4. Provide personalized onboarding Each SaaS customer wants the onboarding experience that suits them. Personalized video tutorials, one-on-one training sessions, or a customized set-up process will make them more comfortable and confident. Which means a better relationship for the long-term. Apart from using someone’s name, by far the best tip is to take advantage of automation. Because automation relieves you from having to do any of the others. It’s finally out of your hands, in the best possible way. Today’s customers expect personalization in their experiences, and research has found that it can increase customer satisfaction, reduce churn rates, and improve overall engagement with products or services. So if you’re looking to give your subscribers the best possible experience (and reduce churn!), make sure personalization is at the top of your priority list—it could be the difference between success and failure. And if you give these SaaS customer personalization tips a try, you’ll be on track to providing them an unforgettable experience that keeps them coming back for more. 86% of consumers will leave a brand they trusted after two bad customer experiences. - Emplifi So if you’re looking to give your subscribers the best possible experience (and reduce churn!), make sure personalization is at the top of your priority list—it could be the difference between success and failure. And if you give these SaaS customer personalization tips a try, you’ll be on track to providing them an unforgettable experience that keeps them coming back for more.Want to see how you can drive up customer loyalty through personalization and automation with Bluefort?
An Adventure in Subscription Management Land – The Big Sister Rescue Edition
Ever hosted a party that got completely out of control when you were younger? Then you know that it was never meant to get out of control. A few extra guests here, a trouble-maker there, too much booze over there, and then you blink, and BOOM! You’ve got compete strangers wearing your grandma’s best jewelry, the sofa’s missing and someone’s setting the fence on fire. If you break the whole thing up, you’ll forever be known as a buzz kill and no one will ever come to another party. AND your parents are on their way home. You’re going to have some explaining to do. And that’s exactly what can happen with subscription management. Well, not exactly, but close enough. Especially if you’re in Revenue Operations (RevOps). Things start to go well. The business scales- a little bit here, a little bit there. You start getting busy. Really busy. You might struggle to keep up. Little mistakes crop up. But as the party gets more chaotic, mischievous billing errors sneak in, managing cancellations becomes a daunting task, and keeping track of subscription data feels like a high-stakes game of hide-and-seek. You’re on the edge of disaster - with dwindling customer loyalty, slipping revenue, and skyrocketing churn rates. And then the moment of inevitability comes- you hit the tipping point and the subscription management process spirals completely out of control. It’s pandemonium. People are leaving. Your brand’s damaged. And somehow you’ll have to explain what happened to people who are going to be furious. But then- just when you think all hope is lost, here comes your proverbial big sis LISA (Bluefort’s Licence and Subscription Automation product suite), who has been here before and knows exactly what to do. She gets you to pull yourself together and introduces you to three powerful tools that will bring order to your wild party and streamline your subscription management process. Each tool will help you regain control to this mess and your reputation: 1️⃣ Consolidating Subscriptions: The Guest List Makeover LISA shows you how to organize your subscription party-goers by consolidating everything. There are no more silos, and groups of people doing different things at different times. She knows how to figure out who’s still here and what they need. As you streamline your list together, you'll get better visibility of your subscription data, making it easier to manage everything, like renewals and cancellations. This newfound clarity brings you one step closer to improved customer retention and reduced churn. 2️⃣ Automating Billing: The Party Trick of Precision Impress your guests with LISA's ultimate party trick: automating billing. It’s virtually impossible to accurately keep up without automation. But by eliminating manual processes and reducing the risk of billing errors, you'll save so much time and ensure a seamless experience for your customers. They won’t be mad at your mistakes. This slick maneuver guarantees a proverbial dance floor packed with happy, loyal customers and increased revenue. No one’s sitting your do’s set out. 3️⃣ Integrating with Other Systems: The Perfect Party Playlist Create the ultimate party atmosphere by integrating your subscription management software with other systems. As LISA guides you to harmonize the flow of data and improve overall efficiency, that means all the challenges of managing cancellations, billing, and subscription data are gone. What’s left? Better customer retention and increased upsell. With LISA's help, you've transformed the out-of-control house party into a well-coordinated and streamlined subscription management extravaganza. Not only does she help you regain control, but she also assists in cleaning up the aftermath, making sure your business is set up for continued success. She brings end-to-end automation, digital capabilities, and ease of use. It’s the trifecta that keeps on giving for your Revenue Operations. Now, as a united force with your big sister LISA, you've conquered the challenges of scaling your business and successfully managed your subscription management process. And with this subscription management, you enjoy increased revenue, decreased churn and a rock-solid reputation as the place to go for subscriptions. You’re free now to scale as much as you want with LISA because she will always be there to help you out and sort everything out for you. Together, with Bluefort and LISA by your side, you'll continue to grow and celebrate the rewards of a successful subscription management journey.
Waterloo: Enhancing Subscription’s Customer Service and Billing Since 1815
The man never imagined when he sat down with strawberries for breakfast that the world was going to break apart. It was June 1815. He was Marshal Grouchy, and he and his troops were supposed to have picked off the Prussians. But he didn’t, and now his ally Napoleon was 20 miles away, fighting for his life against the armies of the Seventh Coalition, at Wavre. And though Napoleon was at first successful at defending attacks, as we all know, he eventually failed against Wellington soon after at Waterloo. The thing is, he didn’t have to fail. Because of a series of vague or incorrect intel and misunderstood orders between Napoleon’s unit and Grouchy’s, Marshal Grouchy and his supporting forces were delayed. So they had no idea that Napoleon’s forces were forced to fight without backup. In fact, Grouchy didn’t even know there was a battle that day - until he heard the actual battle going on. Disaster. This mistake allowed the Prussians to join up with Wellington’s British forces and start the beginning of the end for the French Army. The point is that success requires excellent communication between collaborators. And the same thing goes with subscription management. Okay, you probably just raised your eyebrow. You’re thinking there’s a chasm of difference between 19th century continental military disasters and SaaS subscription businesses. But hear us out. If your teams don’t communicate well, your business can blow up spectacularly. So this history lesson serves as a warning for subscription management. (We’re sure that’s what Grouchy had in mind all along). In a lot of subscription businesses, billing and customer service information and teams are siloed. This risks all the pitfalls of disjointed billing and customer service. And there are many pitfalls. Incorrect invoices. Billing disputes. Customer service reps who don't understand the billing process. A billing team that might not be up on discounts, renewals, upsells and cross-sells. And maybe a sales team that’s way too busy to keep up with everything as well. But if there’s one thing that subscription customers don’t like in a provider, it’s mistake after mistake. That’s the basis of customer churn. High churn rates not only decimate your revenue but also damage your company's reputation, making it hard, if not impossible, to bring new customers. And teams are stuck dealing with recurring issues instead of innovating and taking the company forward. Whether failure comes slow or fast, it’s hard to stop or recover. So why put your business in that position a second longer than you have to? Strategies for Victory To tear those silos down and make sure that info flows between teams again, companies must take a strategic approach. Here are some things that can help: Clear and Concise Billing Information: Easy-to-understand invoices that include info like subscription plans, billing cycles, and payment methods can prevent billing disputes and reduce the burden on both customer service teams and accounts. Training: Arm customer service staff, sales, and billing with the know-how of subscription billing and management processes. This means that all teams will know what is expected of them and what to expect from the others. This means more efficient subscriber query and problem resolution. No more putting a customer on hold hoping to find the answer! Proactive Support: When teams openly communicate, they can anticipate and address potential customer pain points before they escalate or even begin. For example, send reminder emails before subscription renewals or offer assistance with account changes. Best Practices for Killer Results A coordinated approach for billing, sales and customer service teams includes these practices: Regularly review and update billing processes using feedback and insight from all teams to make sure they stay accurate and user-friendly. Keep clear channels between billing and customer service departments, relying on continual collaboration and information-sharing. Implement a centralized subscription management system to streamline processes and provide real-time data access to both teams. The easiest way to put this into action? Enter the LISA Solution: A United Front for Subscription Management You might feel overwhelmed by the very idea of these suggestions. But you might have also felt exactly like Grouchy and watched with horror at the consequence of missed communication. The good news is that you don’t have to make these changes alone. Not at all. Bluefort’s LISA product suite is here to align your billing and customer service teams, transforming the subscription experience for them and your customers. LISA’s platform not only automates subscription billing and management processes (which is a revelation in itself), but it’s specifically designed to make it easy for teams to collaborate. Key features of LISA include: End-to-End Automation: LISA automates your entire-end-to-end process from invoicing to renewals which reduces mistakes AND keeps up with subscription sales and offerings. Digital Capabilities: Your billing, sales, and customer service teams can access real-time data and analytics when they need it. This means they can make informed decisions and handle any customer issues fast. Ease of Use: LISA simplifies the subscription management process, freeing up your teams’ time so they can coordinate their efforts and provide a seamless customer experience. By learning from Grouchy and Napoleon, we can recognize the importance of coordination and communication in achieving success. Uniting billing and customer service teams will change your subscription management experience. It will make your teams far more happy and far less stressed. It will increase your customer satisfaction, and foster long-term loyalty. With these strategies in place, you’ll never have to watch your world crumble at breakfast over a bowl of strawberries.
Bluefort is the Microsoft Cloud Partner and Authority with core competence in Subscription Management and Recurring Revenue automation for SMBs and Enterprise Business.