What is a subscription business?
First of all, let us understand the meaning of subscription management. It is a customer lifecycle operation like managing trials, assigning credits, issuing refunds, and making mid-cycle subscription changes.
whenever the recurring billing is automated, subscription management involves billing action that cannot always be scheduled.
Any services we use nowadays are subscription-based only.
Examples of subscription Management services.
Companies use BtoB marketplace for SaaS subscriptions
Companies like Netflix, Amazon Prime, and Hulu are managed by Wind down. Spotify or iTunes for a workout.
Every company tries to convert its customers from one time customers into recurring subscribers as the company revenue go up and up. It can build more stability and more confidence in their projects, as well, as the price structure led to significant changes in making revenue.
want a service to download twitter data. Check out exportdata
Product or service information
Your customers must know what they are purchasing and why they are paying for your services. After sign-up providing wrong information and getting a sale from them may lead to canceling their subscription because it wasn’t what they are bought or needed. So you have to provide the right information under the product, or product information is always communicated to the customer upfront.
give a customer multiple options to choose one, survey the customer need and plan your subscription pricing accordingly. providing users with a lot of options creates a win-win situation so that user can get what they want and you get your consistent wider audience and convert them into paying customers.
Here’s Why Subscription Management Really Matters
The subscription management comes with three main scenarios from the customers’ lifecycle. Checout the best BtoB marketplace for SaaS subscriptions
a customer signs up: whenever the user signs up for trial. They haven’t yet decided to continue with your product. Are your customer service executives try to empower to extend the trial period? For making trail users subscribers, you have to make people stay after a sign up it is just as important as getting them to sign up in the first place.
A customer’s using your product or services.
When the customer buys your product and continues to use it, they need a host of billing-related services. The service may be upgrade or downgrade as per the customer’s need. If this happens during the recurring billing stage, then is it recorded in your system?. At this time, have you try to start a conversation to calculate credits or track ad hoc charges or else to provide some discount offer to plan that can switch them from one plan to another plan. Try to put your customer or subscribers in your service’s loop. So, they don’t switch to another service.
A customer leaves.
It is the most essential part of the cycle. The loss of paying customers when your recurring billing pricing model is a loss equivalent to the account’s lifetime value. So you cannot lose a single sale. Subscription management and recurring billing are interconnected, while one offers automation and intelligence and further control and flexibility in the system.
When customers lose trust in your service, it signifies the poorly managed recurring billing and subscription. They start ignoring your services and want to stop deal with them
To get out of this loop, you have to show them that the payment made with the services is safe and secure, responsively, and seamlessly. They only focus on your provided value and experience what you give to them and forget about billing and all.
To succeed in the recurring business is building a strong, healthy, positive, and communicational relationship with customers. With this ability, you can start to do a beautiful service for every sign-up user.