Transforming your business by Optimizing Subscription Lifecycle Management

With the launch of subscription businesses and new competitors, one is always keeping an eye out to retain its customers without increasing the capital. The question is – How is it possible?

Customers are more inclined towards the idea of buying subscriptions rather than buying the product by paying once. As the dynamics of the businesses incline towards subscriptions, it has become important for businesses to understand the subscription lifecycle and its management as well.

With that being said, a simpler and practical solution is ‘optimizing subscription lifecycle management.’ It demands agility and optimizing your subscription model so that your customer base does not want to let go of the services being provided.

Managing the subscription lifecycle not only makes you stay ahead of the competitors but also improves customer retention rate along with customer lifetime value (CLV).

Also Read: Grow subscription business with SubscriptionFlow

What does Subscription Lifecycle Management Entails?

As the name suggests, it entails subscriber’s subscription management in processes related to subscription such as pricing, billing, customer acquisition, customer retention, bunding management, and growing their operations by optimizing it.

To manage the subscription lifecycle, there are a number of processes to keep a check on systematically. However, there are always the factors that act as the bedrock of carrying out any procedure successfully. Optimize the pricing strategy, customer acquisition, working on customer lifecycle value, churn modeling, and customer acquisition are to name a few when it is to manage all the operations and processes related to subscriptions. And here is a catch; subscription lifecycle management can transform your business dramatically as it works on building loyalty between the customers and merchants while creating an engaging and lasting experience.

Recommendations to Optimize Subscription Lifecycle Management

Transforming your business is directly proportional to transforming relations with customers. There are a few recommendations that can help you in optimizing your strategies related to managing the subscription lifecycle.

• Optimizing pricing strategies
• Strategic decisions for customer lifecycle value (CLV)
• Customer Acquisition
• Churn Predictive Model

Optimizing Subscription Strategies

For SaaS businesses and those who work on the subscription model, the pricing strategy is the key to unlocking many new arenas. Pricing strategies are a piece of cake if done properly and can drive many a large customer base to it. To optimize the pricing strategy, the competitor analysis and market analysis set your pricing strategy and rank with it.

To take an edge over the pricing strategy, Market Based Pricing (MBP) is the right strategy to follow. Following the strategy of MBP, merchants can attain the level of maximizing the subscription lifecycle value while reducing the churn rate. Making your pricing ‘market-fit’ is beneficial for the fact that the potential customer retention rate and customer acquisition rate will be increased. With SubscriptionFlow, you can get the market-based pricing strategy for your business that will save you from the hassle of executing it manually and make your business agile.

• Create and launch new subscription packages and bundles quickly and easily, with a variety of enrollment and billing options.
• Prebuilt connectors along with invoice and billing systems.
• Increase Average Revenue Per User (ARPU) with smart upsell and cross-sell recommendations based on customer’s history.

Strategic decisions for customer lifecycle value (CLV)

Increasing customer lifecycle value involves mapping out different strategies that are not only purpose-built but result-driven too. Therefore, it is vital to take strategic decisions that can increase customer retention rate, thus customer lifecycle value as well.

To compile the strategic decisions, merchants and businesses can use different customer retention strategies such as product adoption that is driven by customer engagement. To make it more optimized, customers must be given the personalization and customization that makes the user feel valued. Moreover, giving your users or customers walkthroughs and interactive sessions can result in improving the customer lifecycle value.

Not only this but keeping your customers engaged with your product and brand is important that can be done using personalized emails, social media engagement, and much more. The most important decision to make for subscription lifecycle management is working for a knowledge base and providing users with omnichannel interactions so that you never lose a customer to poor customer support.

It further entails:

• Integrate data to provide a 360-degree subscriber picture for streamlined, proactive care and case management.
• Self-service at scale with instant access to answers via a knowledge base, forums, and communities
• Utilize customer support for case swarming to improve subscriber care by promptly resolving and troubleshooting difficulties.

Hence, strategic decisions for increasing customer lifecycle value are directly proportional to transforming your business with the optimal strategies.

Also Read: Role of Customer Success in the Subscription Business

Customer Acquisition

Subscriber’s lifecycle management starts when all the customer acquisition processes start. To achieve more of the subscription lifecycle, it is important to make the starting point of the subscription strong enough that can lead to other processes as well.

For this, conducting a customer acquisition analysis is beneficial as it gives useful insight into characteristics and requirements that are important to the customers. Moreover, this also provides merchants and companies with the information that can help merchants acquire the customer by finalizing the onboarding process.

By streamlining the customer acquisition process, you will:

• Personalize the acquisition process by onboarding new customers with a media-specific, adjustable product catalog.
• With an advanced pricing, promotions, and discounts engine and configurable interfaces, launch your new products and services for subscribers.
• Personalize subscriber journeys and intelligent recommendations to increase engagement and loyalty.

Moreover, an analytical framework for evaluating customer interactions and defining strategic alternatives for customer-relationship management can be established using various metrics.

Churn Prediction Model

No company likes to lose its valuable customers. To save businesses from losing clients/customers, the churn prediction model has proven to be helpful. The churn Prediction Model is the godsend for the subscription businesses as it gives an estimate of the products that have a higher propensity to leave the product or service they have subscribed for. Using churn prediction will equip you with useful information that will further align the strategies to target your customers in order to pursue them to use the services.

Using the model, you can target the right customers while using different customer retention strategies such as email marketing campaigns, offering discounts, etc. It encompasses:

• Reduce churn with AI-powered predictive data (with the help of training data).
• Increase customer loyalty with intelligently triggered and tailored upsell suggestions.
• To design intelligently curated programs, and use an end-to-end loyalty platform to increase subscriber lifetime value.

Also Read: Subscription Management Software for Small Business

Bottom Line

Subscription lifecycle management is the bedrock of subscription businesses as it enables them to get the revenue potential. Optimizing the subscription lifecycle uplifts the potential for subscription businesses along with the recurring revenue.

Schedule a demo with SubscriptionFlow to make your business optimized with seamless management of subscription lifecycle.