What the Subscription-Based Industry Needs to Thrive
In the past, technology played the role of a tool in the quickly shifting economic landscape. People were career-focused and did not have time for menial tasks, and the lack of media visibility nullified the ability of some brands to penetrate into a more robust market.
As a result, assistive services to mitigate consumer issues were born, many of which were in the form of subscription-based services.
They included weekly newspaper subscriptions, regular laundry services, monthly beauty box deliveries, and other things that made people’s lives easier.
Since then, subscription-based services have grown and turned into a revolutionary industry. With the reliance on technological advancements, such as smartphones and powerful computers, the SaaS industry has thrived and now dominates a large portion of the media consumption market.
While there are still challenges to maintaining a successful subscription-based company, many are eased by direct debit companies, lead conversion strategies, and product development.
Changing the Way People Pay
One of the primary challenges of subscription-based companies is turning free trial users into paying ones. Video streaming services such as Netflix and Hulu, which have penetrated 69% of US households, need to convert customers after the 30-day trial period. The same goes for human resources software, payroll services, and other B2B solutions.
The payment solution and experience that you offer has a strong influence on your ability to convert leads. Take a look at your payment services and determine faults within your current system.
Nowadays, consumers are looking for a fast and convenient experience that requires little time and thought. That is why it is beneficial for you to work with direct debit companies in order to organize a seamless payment solution for recurring charges.
You can generate up to 50% more conversions and higher retention values if you do not include credit cards in the payment process. Customers prefer to pay for small charges with a debit card.
As most monthly subscription payments are lower in value, you can elevate your services by offering this hassle-free payment method.
Keeping up With Shifting Trends
As a business, understanding the consumer cohort that you’re trying to penetrate will help you scale your company for long-term growth. Some of the year’s most prominent marketing trends include the need to streamline the overall user experience, and that involves product satisfaction and continuous use.
It’s essential for subscription companies to not only convert but also retain as many customers as possible to generate a consistent stream of income. If you’re offering SaaS-related services, then product development is ultimately going to take up a portion of your efforts.
For instance, if your product is a content management tool, then gathering feedback directly from clients or customer support will allow you to direct efforts toward a more consumer-friendly system.
Brand loyalty plays a huge role in the success of subscription-based services and is the primary reason why some people refuse to switch from Spotify to other music streaming services. However, that loyalty is only possible if you take feedback seriously, and changes are visible within a reasonable period.
The subscription-based industry is revolutionary because it offers a fantastic opportunity to generate more substantial income. The only drawback is that it requires customer retention, which is only possible by continuously improving your services to cater to their needs.
By solving problems with product and user experience, you are essentially creating a sustainable model for your business.
Do you have a business that does subscriptions?
