Tips to Grow Your Subscription Business.
A company operates on the basis of models. Different types of models and approaches combine to help it achieve its goals. In the business world, models are the plans laid out well in advance that a business will work on to prosper.
Some common approaches/models that a business follows to gain customers include pricing, customer acquisition, billing, payments, relationship management, accounting, repeat business, and growth.
The need for each model may not be immediate, but sooner or later, a business needs each of them for sustainability and growth. More or less, these are the universal models on which any subscription-based business operates. But, like startups or SMBs, we often fail to understand the fundamental need for each of them.
Today, we're going to understand how each of these models affects your business and the steps that could have been suggested to fully optimize each model.
1. A pricing plan that supports your business
For any subscription-based business model, pricing is the primary weapon. It is solely responsible for attracting new customers and retaining existing ones. Subscription pricing is complex, as one price for all is not really adapted to today's competitive world and demanding audience. In order to attract customers to your business, pricing versatility can be even more beneficial. It can attract more eyeballs and get more subscribers to try out. While it's okay to ask for a paid subscription upfront, FREE TRIALS can be a way to get into your customers' heads. This is the key to getting them hooked first and then keeping them as paying subscribers for a long time.
Deciding on the price of a subscription can be very subjective. It should be based on the product, USP, TG category, business objectives, and competition (if any). Start with two or three basic pricing plans and promote them. Later, you can add more filters to attract more subscribers with discounts, early bird offers, limited-time price reductions. But first, decide on the pricing basics and test its value.
2. 360* channels for customer acquisition
To keep subscribers coming in, have a presence on all mediums for customers to contact you. Online, mobile and offline sales through calls, reach out to customers in every way possible and connect. Also, make sure that subscription enrollment is a seamless experience for your customers on every platform. Be available to help your customers when they need advice. Understand that with the availability of so many distractions, even the smallest loophole can discourage your subscriber from backing out, forcing you to leave all your money on the table. Strategically move your client through each step and never leave them in between to avoid backtracking.
3. Consciously and correctly bill your clients
A traditional company simply bills its customers based on the products and services sold. In a subscription-based business model, however, billing is a complex process. Various subscribers, different dates, complex plans, offers/discounts, and punctuality of the billing date are fundamental factors that a company continues to work in such a business model. Constant management is tedious. Therefore, to be efficient, error-free, and precisely on time, a subscription business must invest in subscription billing software that automates. An online recurring billing system is able to automate all the billing and payment management administrative tasks that your employees spend many hours on. With pre-set rates, customer information, and plans, invoices are automatically generated and sent to your customers without any errors. This is the kind of professionalism that businesses are looking for.
4. Don't make payment setup complex
While collecting payments is super easy in a regular business setting, it is extremely complex in the subscription model. The lack of credits, EMIs, and extremely small payment windows due to recurring billing make the whole process complex. Therefore, to facilitate billing and payments, automate the collection of payments and the sending of reminders to help your customers pay for subscriptions on time. The timely collection ensures undisrupted cash flow and smoother operations with full visibility into each subscription plan.
5. Build customer relationships
In a subscription-based business, customer service is paramount. Maintaining a strong relationship with customers is the only source of maintaining your revenue. Upgrading and maintaining high standards work impressively to keep customers/subscribers intact. Without customers, a business has no existence. As a business grows and the customer base expands, it is essential to maintain a strong ethic to retain each subscriber. Always be on your toes and proactive in guiding your subscribers when needed. In a subscription business, acquiring new subscribers each month is essential. But frequently updating and modifying plans with additions, upgrades and renewals keep the business going.
Most large companies generate up to 75% of their revenue from existing customers and a small proportion from new customers. Therefore, customer relationships become paramount. You can manage it with AI. The already existing subscription billing software can be used to manage the customer relationship by integrating AI intelligently. Therefore, get a fully automated recurring billing software customized for your business to manage every aspect consistently.
6. Tightly manage each account for maximum ROI
Any typical subscription is complex to manage. With so many varied transactions, account management becomes chaotic. Human eyes can miss some factors, resulting in inaccuracies in the end. But this must be managed. Now the question arises: how? How to manage each accounting efficiently without investing many hours? The answer is simple. AUTOMATE. By automating the entire accounting process, all you have to do is filter and find the information that you think is relevant. The recurring billing solutions that automate simply eradicate manual intrusion and wastes effort. It is made to simplify every process that is cumbersome for human efforts.
7. Grow with a visionary infrastructure
A business is launched with a vision for growth. And a growing business needs a reliable system that is built to grow with the organization. Any facility that is bound to a certain limit should be avoided. Instead, a business should focus on infrastructure that can grow with it. Seamless integrations with technologies, payment gateways, and other configurations that contribute to growth are assets to an organization. Look for a back-end configuration that is computable, cost-effective, and easy to install. Avoid single-purpose setups; opt for more versatile ERP setups that can handle billing, payments, subscriptions, customer management, inventory management, workflow customization, and more together.
While you're on your way to building your subscription business, we're always by your side to help you take the next steps. This was a short guide to understand some basic factors of building a successful subscription business with the involvement of recurring billing software. Read on. There are always ideas and tips coming out of our boxes to help businesses in all industries grow.