ChargeMonk's Subscription Management


      Subscription Business Trends For 2020

With the beginning of new decade, the subscription industry also brings the better ways to innovate with unique approaches, generate latest revenue streams and engage customers. Below given are the five subscription business trends that are expect to work well in 2020.

Subscribers are more devoted, more emotionally attached to your brand and create higher revenue during their lifespan than other customers. Though to make it all possible, organizations have to take extra care for them. In the subscription industry, more than the customer acquisition customer retention is significant. Subscriber churn is one of the major challenges of subscription marketing. As per reports, subscription companies loses almost 34% of their customers due to subscription churn. Effective customer retention can solve the problem of churn by securing the long-term revenue generated by loyal customers.



Customization Continues to Evolve


Nowadays brands wants to put extra efforts to modify a product for their customers to make it valuable for them and it is when customization comes in the picture. Customization has become one of the vital factors for various subscription services and this proves a win-win for both brand and customer. The brand collects all type of invaluable customers data to understand their taste and to improve the customer experience even further.

The digital subscription services such as Spotify and Netflix have earned the reputation for using the data from listening or viewing history of customer to create a bespoke stream of media and to modify the recommendations. As a subscriber has a long-term relation with brand, that information can be refined and developed over time.

 The Great Subscription Bundling
To enhance an existing subscription, there are subscription bundles to provide complementary value on products or services. Various smart subscription businesses have espoused bundles to keep their subscribers content and to combat the churn.
 An impactful product bundling strategy can prove effective in increasing the revenue over the time. This is the reason behind the fact that why the biggest brands in commerce industry started considering subscription bundle. If we talk about Apple, by bundling their TV, online magazine, and music offering they can give more benefit to the subscribers who may be taking advantage of one services only.


Pay As Per Use
Pay according to use is another significant strategy to reduce subscription fatigue and to enhance subscription experiences.  A typical subscription portfolio of a consumer consists of a couple of a music streaming service, couple of video streaming services, a magazine or newspaper subscription service and a some other niche offerings.

Cloud companies have been working on usage-based charging in the B2B space and something similar can be offered by B2C subscription companies. Even though less complex from a billing point of view by offering two plans, which includes a discounted entry level plan for the low use accounts and a regular plan for those using content above a fixed threshold. Akin to the freemium model, this system can also be used to draw the attention of more subscribers to make a move and sign-up, without offering anything for free.


Recommendations and Loyalty Programs on the Rise 


It is becoming a trend among subscription-based companies to reward users for staying loyal to the brand or recommending products. Usually, in case of recommendations both new customers and the recommends get an incentive for starting a new account. In the other hand loyalty programs, reward customers to stay loyal with the company by not switching to competitors and are accompanied by gamification often. Both are an effectual way to create the vendor lock-in effect and the smart subscriber retention tool.
User recommendations are the great approach of attaining new subscribers as they take the burden off the marketers: overall, it is the user who performs the promotion for them, so that the company doesn’t spend money itself on the user acquisition. The network marketing scheme works on the same idea. Loyalty programs are a typical marketing tool, and are highly effective. According to reports, 70% of consumers recommend a brand willingly because of its loyalty program. And as the matter of fact, word of mouth is worthier than the traditional marketing.



Comments

Post a Comment

Popular posts from this blog

Simple Recurring Billing Software for Rental Companies

You understand how annoying collections are in case you manage your own property, late payments and bounced checks can be a recurrent headache. And in case you handle someone else’s property, there is the additional trouble in explaining past-due collections to your customers, the property owner. What if there was better, easier, and simple recurring billing software for rental companies to handle the rent collection at your business? The business of property management has no less challenge. From the property maintenance and upkeep to the legal liabilities, you have got plenty on your plate and that is before you factor even in the no.1 headache for the property managers and that is collections . Whenever tenants are not paying on time, it boosts your workload, which results in a number of similar headaches, like: ·         Having to go after the tenants for payments. ·         Tenants requesting more time ...
Read more

Metered Billing Work in a SAAS or Subscription Business

Image
  There are various reasons why businesses require a billing platform. It can monetize services, products, and help you to break into new markets. Additionally, it provides automating invoicing, flexibility, payment processing, and much more. Billing in current ecosystems swiftly changes and progresses can disorient companies in case they do not join the trend. In addition to this, transformation in changes in sales/marketing and the digital system is bringing revolution to billing practices. So, today companies must shift along with the dynamics of the modern-day market. The billing’s digital reinvention comes with the real promise, comprising the ability for companies to monetize their model worldwide. Therefore, let’s have a look at some of the billing systems.   Software as a Service - Billing Platforms Software as a Service is the modern billing system, where engineers can store the applications on cloud and access them by connected devices. Moreover, it is the di...
Read more

Revenue Recognition Model

  The new standard formed a completely new accounting model for revenue recognition. Its objective is to regulate the way the entities recognize revenue. Several entities may have an insignificant change, which result into the new standard whereas other entities can end up with a huge impact on adoption. Though, almost all the entities have to deal with the additional disclosure needs. This latest standard on the revenue recognition is the principle-based approach relatively a “bright line” rules-based perspective. It is the only revenue recognition model used across all transactions and industries. Five-Step Revenue Recognition Model The p r imary principle of new standard is that an entity should identify revenue to represent the transfer of assured services and goods to customers in the amount that reflects contemplation to which the entity supposes to be permitted in exchange for those services or goods. To perform this purpose, the standard formed a five-step model for most of...
Read more