Recurring Revenues in Subscription Commerce

 As we know that the growing number of companies have turned into a subscription-based business model, moreover subscription commerce has witnessed exceptional growth in the previous couple of years. No matter it is B2B or B2C businesses, all of them gain profit from the subscriptions, providing an edge over their competitors.

A subscription commerce business, regardless of how thriving it is, cannot improve its revenue inevitability without recurring revenue model like ChargeMonk. The business requires evaluating the various stages of the development to recognize the bottlenecks carefully.

1. Understanding the Details of Sub-Com

As direct as it may seem, the subscription commerce is quite complicated in fact. There are various areas within subscription management that require to be approached with the due contemplation. These could be payments, logistics, operations, options, customization, risk management, security and so on. Usually, companies should aim for the solution that allows smooth integration of all the vital factors, thus ensuring the maximum revenue competence.

2. Recognizing Revenue Loss

Subscriptions accentuate retention and customer acquisition, and correctly so. Finally, building the lasting relationships with the customers brings success for a sub-com company. Though, there is one more very crucial factor that goes neglected often and that is the revenue loss happening at different phases of the business lifecycle. A huge part of such loss can be brought back and reclaimed into the revenue flow by performing an in-depth scrutiny to recognize the areas that are not delivering as expected and taking an appropriate measure.

3. Data and Marketing

The 4P’s (pricing, product, place and packaging) not any more hold the same meanings like before, and certainly so, as product has become a service now. Hence, to attain predictability in the business, marketing has to be supported by data. Attain as more as customer insights as possible and consider closely the feedback got from the existing customers. By using the target-based marketing plan, businesses enhance their probability to gain sustained predictability.

4. Track your Sales

Creating a sales process that generates reliable results over a period of time is essential to reach the predictable growth in business. For that purpose, monitoring various sales metrics is an absolute must that helps to create the realistic picture of the inter-relation among them, and the status of business in terms of current revenue. It also offers clarity about how the eventual growth plans may convert into revenue in the future.

On acquiring sustained growth by sales, the significance of accepting a multi-pronged strategy must include the following:

· Optimizing pricing and packaging

· Expanding the sales team

· Increasing value through cross and up-sells

· Minimizing the churn rate

5. Customized-Payment Models

As revenue collection creates a huge chunk of revenue assertion, having a tiered-pricing approach and allowing smart, tailored billing and payment models could be supportive in minimizing the financial loss. The requirement for customization is true for businesses that host a worldwide presence especially, as the consumers are more possibly to stay in case they are able to interact with interface in their local language and do payments by payment models of their liking.

6. Maintaining a Dedicated Customer-Base

After the subscription business levels up to a certain point, the huge part of its revenue started flowing in via its existing customer base instead of the fresh ones. Cross-sells, up-sells and renewals are the most general methods of how the subscriptions can grow and sustain their income in long-term. It is crucial to keep with the current customers and hold on to them.

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