Subscription Business Maturity - Stage 2
Were you able to identify your perfect client? Do you think you found the right balance between the experience you provide your customer with and the price you charge? You've probably also been working hard to differentiate the quality of your product or service offering, as well as making it easier for new customers to sign up . If this sounds like you, congratulations! The hardest part is behind you and you are now most likely at the "Opportunistic" stage, the second stage in Subscription Business Maturity.
Let's talk about some other characteristics of this stage. Your focus has probably been to drive as much new sales as possible. You've probably been checking your page views and number of subscribers almost every day. By now, you've implemented some simple pricing tiers and maybe even offered free trials or freemium solutions. You are seeing growth, but your churn is probably high and your company lacks scalability when demand for your offering spikes. You are probably still stuck in traditional financials. Billing changes are manual and it's getting more and more difficult to manage them.
Let's address Churn first. In order for the customer to feel compelled to renew their subscription, they must see ongoing value. As a merchant, you need to consider how to make your offering better and "stickier" over time.
When it comes to financials and business operations, your analysis should be forward-looking, rather than backward-looking. You should take some time to document what changes need to be made and invest in tools and integrations that will make subscription management easier. You should also begin tracking Annual Recurring revenue (ARR) or Monthly Recurring Revenue (MRR).
Resource: IDC Maturity Scape