Published on September 29th, 2022 | by Bibhuranjan0
6 Benefits of Using Subscription Management Software
The popularity of online shopping has immensely increased in the past few years, especially during the pandemic, contributing to the rise of subscription businesses. Let us explain if you’re not sure what a subscription business is.
What is a subscription-based business?
The subscription business offers a more straightforward and relatively cheaper way for online shoppers to carry out all their transactions. It also turns those buyers from one-time to regular (and sometimes lifelong customers). That and having the monthly recurring revenue (MRR) allows the business to have accurate predictions of future growth and expansion. Simply put, they are the businesses that sell their services or products for monthly or yearly recurring payments. Most common examples include Netflix, Spotify, etc.
Businesses today use the subscription business model to generate revenue. Subscriptions are very helpful for growing businesses, as they bring and retain customers, are easier to manage, and are convenient for customers. Likewise, by tracking consumers’ behavior, companies can provide better services, create more engaging ads and market themselves via email newsletters.
How do subscription businesses work?
But the question is, how do these businesses work? To make such systems work, it is crucial to have the right tools, including subscription management software.
You can run your business smoothly, allowing you to acquire and retain subscribers more easily. Despite its many advantages, it also involves the challenge of keeping track of every customer’s subscription. The best approach is to use a B2B subscription management platform that streamlines all your subscription and customer records.
Benefits of subscription management software
The following are some benefits businesses can reap from using subscription management software.
Create the best possible proposals and promotions
We are well aware that gaining subscribers is not an easy task. Sure, you can convince some of your existing customers by offering the right deal, but the majority will still hold back. Here’s where the promotions come in.
The promotions will erase the doubts of your less enthusiastic subscribers. The subscription management considers all the factors that surround your subscription business and, in turn, offers the best solutions like coupon code functionality, free trials, etc.
Streamline your recurring billing
As part of the subscription business, you bill your subscribers weekly, month or year. If your management is not up to the task, that can create a mess for your accounts and finance department. They may have to work overtime to ensure the billing process runs smoothly. Implementing subscription management software can relieve your employees of the burden of manually recording subscriptions.
Aside from that, you also minimize the possibility of human error; having everything digitized has an accuracy and precision to it that humans are not capable of. So, this way, you save time and unnecessary hassle.
Have a seamless payment system
You’ve complied with all the requests and sent out all the messages and invoices. Let’s not get too comfortable because there are many steps ahead. Eight, to be specific (for the recurring payment process). The most problematic of them is the gateway.
The gateway you choose influences your processing cost as well as the rates of acceptance. Having a single gateway is a big no. Fortunately, subscription management software caters to those needs and provides several gateway options.
Additionally, you want to create a seamless checkout experience for your customers. Subscription management platforms should allow you to customize pre-built checkout pages in seconds and optionally customize fully customized checkout pages.
Besides the checkout process, your customers also have preferences regarding payment methods. Many consumers are abandoning traditional credit cards for alternative payment options, such as Apple Pay, PayPal, and Venmo. Payment methods like PayPal, for example, increase revenue by 25% on average for merchants who accept them.
Multiple payment options make it easier to implement consumption-based billing models. Consumer-based billing can include prepayments, microtransactions, and eliminating the need for customers to make commitments – making your product more accessible.
Reduces involuntary churn
With subscription management software, you will face a lot fewer failed transactions. There is still a chance that this may happen. Some transactions will inevitably fail. You will likely lose many opportunities if your system cannot combat payment failures. Researchers found that transaction failures cause over 50% of customer churn.
Therefore, it is important to choose software with the necessary tools to fight the transactions that cannot come through. And how to preserve the maximum amount of revenue.
Connect your CRM to the platform seamlessly
Your customers’ data must be unified and easily accessible if you want to create an excellent customer experience. A CRM integration allows sales teams to quickly add subscriptions and one-time offers to the right accounts.
CRM integration allows you to synchronize information between your CRM and subscription system without having to write custom code, which will be a good idea for executives who are already swamped with other projects.
Use of subscription analytics
Analytics plays a vital role in acquiring new customers or subscribers. How do you know, for example, that you are spending more money on gaining a particular subscriber than what the subscriber can offer you on average lifetime value? Without opting for analytics software, that is not possible. And you are more likely to lose revenue than gain it.
With the subscription management software, you can access essential subscription model metrics. You’ll have invaluable insights into customers’ habits, wants, and needs, and after going through them, you can spend your money and efforts accordingly, resulting in more customers, revenue, and profits.
If you don’t have the right subscription management tools, it’s like trying to build a house without the right tools — it will take a LOT longer. The final product will likely have some flaws, too. However, if you choose a top-tier toolkit, you’ll almost always score a win, even if it costs more upfront. Now that you know the benefits, what are you waiting for? Don’t hesitate to get that management software now for your business.
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