If you’re an Internet service provider, an OTT content provider, or if you run a subscription box company, you’re most likely using a subscription billing model. This business model is perfect for making sure you have a steady stream of revenue from your customers. However, can you confidently say that you’ve got it all figured out?
Although the subscription billing model is effective, you still need to take a closer look at things to see if your business is actually getting the most out of it. If your subscription-based business is already doing wonders for you at its current state, imagine the extra profits you’ll be getting if you can optimize it. Check out the following tips and see which ones you can apply in your own enterprise.
Simplify Your Signup Process
Customers tend to like subscription-based services because they are incredibly convenient. That convenience should start as early as the signup process. Having too many details to fill out during the signup process can actually turn away potential subscribers. If you can, simplify the process by starting with their name and email address. Only get further details down the road after they’ve tried your services for some time.
Stick to Monthly Payments
Customers don’t want to be hassled by repetitive reminders about pending payments that they have to settle. It’s all about getting the right balance. Make your billing period too short and you’re guaranteed to have a few annoyed subscribers. On the other hand, having extra-long billing periods would make them liable to forget about their payment. For best results, stick to monthly billing periods.
Get a Subscription Billing Platform
Keeping tabs on each subscription is a pain, and collection can even be more of a problem. By using advanced subscription billing solutions, you’ll have an easier time managing both new and current subscriptions. Also, you can use the data gathered by software to detect current trends or pinpoint signs of subscriber-related issues such as failed payment transactions, missed payments, or decreased service usage. This way, you can take the necessary measures to encourage the customers to keep their subscriptions or even upgrade to more valuable subscription options within your platform.
Expand Your Payment Options
A lot of people choose not to continue their subscriptions because they are unable to pay the company. You can’t expect everyone to use the same two or three payment methods, so you need to support as many of those as possible. Fortunately, top-notch recurring billing platforms support multiple payment methods, so potential subscribers won’t have to worry about payment issues later on.
Make Friendly Invoices
Developing a good relationship with subscribers greatly helps in improving customer retention. One of the best ways to establish this relationship is by using a friendly tone in your communication materials such as those used in your invoices. You want an invoice that can show your customers how much you appreciate them and how much you value their business. You don’t want one that appears like it’s only out to extract money from people.
Reward Subscriber Loyalty
Long-time subscribers are the best subscribers in terms of value. There’s not much need to spend on advertising to them, but they’re more likely to stay subscribed to you. However, that doesn’t mean you should ignore them. In fact, giving them rewards such as discounts or even a small “thank you” package delivered to their doorstep would be great for convincing them that they made the right choice in subscribing to you.
Optimizing your subscription-based business can greatly increase your profits by encouraging potential buyers to subscribe with the promise of better convenience and great customer service. Learning how to make the most of this business model is crucial to making sure your business will keep thriving.