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This article is for you if:
- You’re curious about the history of subscription businesses
- You want to learn how to enhance customer service in your B2C or B2B subscription business model
- You want additional strategies for reducing customer churn
- You are looking for a dynamic subscription management system
Steady streams of recurring revenue are enticing entrepreneurs around the globe to tap into subscription success. Since 2012, sales growth in the subscription economy has nearly quadrupled, reaching 437%. While some companies are launching subscription ventures from scratch, others are finding ways to incorporate them into their existing frameworks.
The concept is simple. When a brand offers a product or service that enhances the lives of those who use it, customers will want to keep it around. In this lies the opportunity to turn sporadic one-time sales into repeat automatic payments.
Subscription success dates back several centuries
Subscription Success Strategy #1: Customers Drive The Success of Your Business — Treat Them Like Gold.
While there is massive potential for profitability with subscriptions, online retail is all about the customer in 2021. We already know subscriptions are something customers seek out because they benefit them in the following ways.
Subscriptions allow people to put many aspects of their lives on auto-pilot. A person who subscribes to a clothing subscription box (such as The Lauren Look by luxury label Ralph Lauren) eliminates a trip to the mall to find the latest fashion trends. Those who subscribe to meal kits know dinner is already planned. Customers of the Dollar Shave Club know their razors will not go dull before a new one arrives.
The potential to save money
Many subscription businesses offer special pricing on products when they are delivered on a subscription basis. A skincare product that costs $100 when purchased one time may only cost $80 with a subscription. Additionally, many companies leverage incentives for customers who recruit their friends to sign up.
A sense of fun and anticipation
For businesses that offer physical products, receiving a delivery of subscription goods can feel like Christmas every week, month or season. Companies like Taptivate are even capitalizing on creating marketing opportunities at the unboxing moment. The business allows subscription box companies to connect with customers by allowing them to tap or scan customized NFC tags or Dynamic QR codes that take them directly to promotional messages. These may include augmented reality, video or links to social media pages.
Access to the latest and greatest resources
As new products and services emerge, subscribers are often the first to experience them with their regular orders. SaaS companies, in particular, have the opportunity to release updates and new features to customers instantaneously.
Because subscriptions are ongoing, brands have the opportunity to interact with customers more regularly, and this is something they should take advantage of. More contact equals more opportunities to provide positive experiences.
Brands that embrace a customer-centric mindset will be the ones that enjoy prolonged subscription success. Innovation and personalization are essential when interacting with customers today. Building a professional and courteous customer service team is another quality control measure that always pays off in the e-commerce space.
Subscription Success Strategy #2: Don't Just Track Analytics — Look for The Story They're Telling You.
- What content are customers engaging with?
- How long are they spending on a particular page?
- How many unique visitors are coming to the website?
- How many people clicked on a particular link?
- What is the bounce rate on a page?
- How many new followers did we gain this month?
Subscription Success Strategy #3: Invest in A Scalable eCommerce Tech Stack.
- You should do whatever it takes to increase your website speed.
- You need a robust customer relationship management (CRM) system. We love Salesforce.
- You must have a reliable support process with quick response times.
- And last but not least, you need a way to manage recurring orders online. Let’s dive deeper into this one:
mPower Subscription Management Solution for Magento
One of the essential points of subscription success is the technology you need to invest in for a profitable webstore. Quality extension provides a complete solution for your subscription management system. In this video, you will learn about how the structure of Magento store builds up and the process of subscribing. Check the demo intro of mPower solution.
Recurrex: Order Automation for Salesforce
Why is the Salesforce CRM system so vital as a part of the subscription technology for recurring revenue businesses? By automating necessary workflows, this CRM helps to improve user experience and keep the data stored in one place. Watch our demo to learn more about why a CRM system is vital for your eCommerce business.
Subscription Success Strategy #4: Get Expert Guidance from Reputable eCommerce Professionals.
Ultimately, subscription success centers around customer lifetime value, or the forecasted net profit from a customer relationship. Adopting a customer-first mindset, tracking and acting on analytics, and investing in the right tech solutions are all strategies that will help maximize recurring revenue in your business.
Seeking out the right mentors is another key way to help take your subscription business to the next level, and we’re here to help. If you would like to speak to an eCommerce expert at PowerSync, schedule your risk-free, complimentary consultation today.