It may not seem like a critical decision but the wrong choice of Subscription Management system will result in unfavorable consequences for the co-workers, customers and the company. That’s why it is imperative that you speak with a product expert before finalizing the decision and implementing the process. We have compiled some useful tips that can aid in your decision making process.
Set out a plan: At this stage you can’t plan for all the changes that will happen when you are faced with customers in real-time. Nevertheless, it is still a great place to start. Think of all the different pricing strategies that may or may not be required depending upon competition, international pricing, bundled pricing etc.
There is no room for error: If the customer has been charged incorrectly or not given pertinent details, it can lead to a major cause of customer dissatisfaction and churn. Always make sure that you are charging the correct amount to the specific person for the right amount of time. Spreadsheet-based billing can pave way for errors and data inaccuracy, which is why they are fast becoming obsolete in workplace settings.
Provide correct information: It is the company’s responsibility to ensure that the website and billing and invoicing systems are updated regularly. Questions should be fully answered. It doesn’t matter even if the invoice was correctly calculated but if it fails to meet the customer’s expectations, then you are on your way to losing a customer. As for recurring pricing, following points should be clearly stated: initial charges which includes setup fees, activation fees etc., and subscription charges: whether the company will charge in advance, or at the end of the period? Be very specific in mentioning whether the billing is on the 1st or the 31st.
Handle credit card declines graciously: Don’t blacklist a long-term client because their card number changed or the card expired. Instead, send them a warning or impose a penalty. You should set out grace periods which will keep the customers on their feet.
Be prompt in answering all the questions: Customers shouldn’t have to go from pillar to post looking for help. There should be a central location both with customer agents and sales team where all the adjustments, credits, discounts, charges and refunds are handled.
Don’t ignore Subscription Analytics and Reporting: Your subscription management software must have powerful analytic features which allows you to gain a deeper insight into your customer’s behavior and understand the health of your business better. You should give particular attention to churn rate, acquisition costs, usage etc. The report should be integrated into a cloud system so that the data is easily shared throughout the organization.
As technology evolves and the dynamics of the workplace shifts, companies need to be quick on their feet and adapt to their customer’s changing needs. For any SaaS or subscription based company, its billing platform will make or break the business. A hybrid pricing strategy which caters to a diverse customer base will prove lucrative for the business in the long-run.