7 Experts Prescribed Tips Will Sail Your Drowning Subscription Business
A business runs on models, different types of models and approaches combine together to successfully help it achieve the goals laid in objectives. Models in business are the plans laid well before on which a business will work to thrive.
Some of the common business approaches/models a business follows to gain clientele are pricing quoting, client acquisition, invoicing, payments, relationship management, accounting, repeat, and grow.
The need of every model may not be immediate, but sooner or later a business needs each for sustainability and growth. More or less, these are the universal models every subscription-based business runs on. But, as startups or SMBs we often skip to understand the core need of each.
Today, we are going to help you understand how each of these models affects your business and some steps that could have been proposed to optimize each model fully.
1. A Pricing Plan that Supports Your Business
For any subscription-based business model, pricing is the key weapon. It is solely responsible for attracting new customers and retain the existing ones. Subscription plan pricing is complex as one-price-for-all does not really fit in today’s competitive world and demanding audience. In order to attract more subscribers to your business, versatility in pricing can be even more beneficial. It can grab more eyes and provoke more subscribers to take up the trials. While it is okay to upfront ask for paid subscription, but FREE TRIALS can act as a pass of getting into your customer’s head. It the key to getting them addicted first, and later stay with them as paid subscription for long.
Deciding subscription prices can be very subjective. It should be based on product, USP, Category of TG, business goals, and competition (if any). Start with two or three basic price plans and promote them well. Later you can add further filters to attract more subscribers with discounts, early bird offers, limited-time price layoffs. But, first decide the basics of pricing and test its value.
2. 360* Channels For Client Acquisition
To have an overwhelming experience of subscribers flowing in, have presence across every medium to let clients access you. Online, mobile, and offline sales via calls, reach out to clients through every possible medium and connect. Also, ensure that the subscription sign-up is a seamless experience for your customers on every platform. Be available to assist your clients whenever they need you for guidance. Understand, with the availability of so many distractions even one minor loophole can discourage your subscriber to back out forcing you to leave your entire money on the table. Strategically move your client to every step and never abandon them in between to avoid backout.
3. Consciously Invoice Your Clients Correctly
A traditional business simply invoices clients on the basis of products and services sold. Whereas, in a subscription-based business model billing is a complex process. Varied subscribers, different dates, complex plans, offers/discounts, invoice date punctuality, are some of the basic factors that a business keeps on working in such a business model. Constant management is cumbersome. Therefore to be effective, error-free and precisely be on time, a subscription business should invest in a subscription billing software that automates. An automated recurring billing system is capable of automating every clerical job of invoicing and payments management that your employees are wasting multiple hours into. With pre-fixed rates, client information, and plans, invoices are generated and sent automatically to your clients without a single miss. Well, this is the kind of professionalism businesses are looking for. .
4. Do not Complexify the payments Setup
While the collection of payments is super easy in the regular business set up, it is extremely complex in the subscription-based model. No credits, no EMIs, and extremely shallow payment windows due to recurring billing complexify the entire process. Therefore, to ease out invoicing and payments, automate payment collection and a reminder to help your clients pay in time for subscription taken. The quick collection ensures undisruptive cash flow and smoother functioning with complete visibility into every subscription plan.
5. Build Customer Relationship
When in a subscription-based business, customer service comes alongside. Maintaining a strong relationship with customers is the only source of keeping your revenues intact. Upgrading and upholding high standards work impressively for keeping clients/subscribers intact. Without customers, a business has no existence. When a company grows and customer base gets bigger, maintaining strong ethics is essential to hold every subscriber. Be always on toes and proactive to guide your subscribers as and when needed. In a subscription business, acquiring new subscribers every month is critical. But, frequently updating and changing plans with add-ons, upgrades, renewals keep the business activities going.
Most large companies generate up to 75% of their revenues from their existing customers and a little proportion from brand new clients. Therefore, client relationship becomes foremost important. You can manage it with AI. The already existing subscription billing software can be used to smartly manage client relationship with including AI to it. Therefore, get a fully automated recurring billing software customized for your business to manage every aspect cohesively.
6. Closely Manage Every Account For Maximum ROI
Any typical subscription is complex to manage. With such vast numbers of varied transactions, managing books becomes chaotic. Humans’ eyes might miss some factors leading to inaccuracy at the end. But it needs to be managed. Now the question arises: how? How to effectively manage every accounting without investing multiple hours into it? The answer is simple. AUTOMATE. Automate the entire accounting process and you simply filter and find information that you find relevant. The recurring billing software that automates simply eradicates every manual intrusion and effort wastage. It is made to simplify every process that is cumbersome to human efforts.
7. Grow With Visioned Infrastructure
A business is started with a vision to grow. And, a growing business needs a reliable system that are built to grow with the organization. Any setup that is bound to a certain limit should be avoided. Rather, a business should focus on infrastructures that are capable of evolving with business. Seamless integrations with technologies, payment gateways, and other setups that add to the growth are assets to an organization. Look for calculable, economical, conveniently installed back-end setup. Avoid single-use installations, opt for more multi-use ERP installations that can manage invoicing, payments, subscriptions, client management, inventory management, workflow customization, and more together.
Finally:
While you’re on the path of building in your subscription business, We’re always on your side to help you take the steps forwards. This was a little guide to understand few basic factors of building a successful subscription business with the involvement of recurring billing software. Keep up with the good read. There are always ideas and tips coming out of our boxes to help businesses in every sector grow.
