Subscription Software: Making It Deliver
Participating by subscription improves customer service on both sides of the desk. While this statement may seem somewhat self-absorbent, it is quite truthful. Using subscription software, the customer receives an experience enhancing their business or personal activity with a provider enterprise.
Subscription services are present in a number of business models and product offerings over many industries. They are prevalent in these representative fields:
- Equipment sales
- Financial services
- Real estate
- Database/Knowledgebase Access
Subscriptions are available within other industries and serve to enhance consumer enjoyment of reading, entertainment and health/fitness activities. Most subscriptions have low startup costs and reduce a customer reluctance to try, which is the lure that attracts participants.
Consumer benefits make this model appealing to the masses. Because customer loyalty is important, it puts them in control as the merchant does everything possible to provide the best experience possible. The result is an organization’s focus to retain and grow their customers by providing ongoing positive and valuable experiences for their customers.
Pleasing the consumer is important as this means a better chance on an upselling that will result in higher billing and renewals. This will help an organization to build on success with retention instead of churn, which means a higher ROI on customer acquisition investment. Patterns of consistent recurring revenue mean an organization has more predictable and consistent business model.
How it Works
While up-front cost of acquiring each customer can be higher, but the cost of retaining and service each one you get is much lower. Recurring payments help an organization maintain predictable cash flow, improve billing accuracy and provide excellent customer service practices. Automation allows the process to be very efficient and easy to manage.
Once a subscription contract is active and initial payment received, the system does the rest. Your customer receives a customized statement/invoice dependably and the company experiences reduction of administrative costs.
Contact us to learn about the various ways we can help your company apply the subscription model of business.