Enhance User Experience—Boost Customer Loyalty with Reward Redemption in SubscriptionFlow
Reward Redemption is another magnet that not only attracts customers but also gives them an adrenaline rush every time they get something as a reward.
For SaaS businesses and those whose business infrastructure is based on the subscription economy model, redemptions play a key role in acquiring and retaining customers at various levels. For a customer cancelling a subscription, lucrative offers or rewarding coupons at checkout can prevent him from breaking the bond. Improving the reward redemption rate by offering the user coupons, vouchers, or points to redeem can increase the lifetime value (LTV) and customer retention rate.
You can turn the tables for your business with a higher churn rate and lower customer retention rate by employing reward coupons or vouchers for redemptions intelligently using our customer success software.
This article will illustrate how vouchers available for the customers to redeem at checkouts can do wonders in case a user intends to cancel, pause, or downgrade a subscription and many other possibilities.
Let’s look into the working of subscription redemptions for discounts or vouchers along with other strategies that can give you a kickstart.
Offer a Reward for Redemption to Prevent Subscription Pause, Downgrade, or Cancelation
There are multiple instances when users choose to pause subscriptions for different reasons. Redeeming a reward at checkout when a subscriber is about to pause a subscription may influence the user to activate the subscription entails and redeem the reward later than the stipulated time frame.
In SubscriptionFlow’s client success software, the sales teams or customer success teams of a business can create custom offers as coupons or entitlements to be redeemed by a particular user or segments of users at checkout based on their user activities, particularly at the brink of churn.
To elaborate more, let’s say a user buys a subscription of 8 months for any supposed product. However, for some reason, if the user decides to pause the subscription for 2 months as the products/services are not required to be availed, the user can be offered some entitlement to be redeemed when he is ready to activate the subscription. This increases the scope of his return sooner.
Our software for customer success feature of redeeming a reward at the brink of cancelling, pausing, or downgrading a subscription will entitle you to many benefits such as increased and continuous recurring revenue streaming and a higher customer retention rate.
Also Read: Increase Customer Retention Rate with Subscription Retention Strategies!
Creating and Redeeming Coupons
To get more leads and profits, the strategy of applying coupons is employed. Coupons can be used differently and in different ways to fuel customer retention and increase customer lifetime value.
They enable customers to avail of exclusive features that offer them to pay less than the actual price for the service or the product or perhaps they can avail of other offers or strategies in the form of coupons and finally redeem the reward to continue their subscription.
Our AI-driven system studies customer behavior and employs reward strategies such as coupons, discounts, etc. as flagged by the merchant to keep them together with the product and keep cancellations at bay. In the jargon of SaaS, this gives them a unique user experience based on the customer behavior and characteristics.
Hence, if a customer’s behavior and activities show less product usage and engagement, it implies a higher chance of churn from the customer. Based on this, customers are entitled to the features that keep them in the loop while retaining them intelligently.
The flexible couponing system enables you to create custom coupons and vouchers while you select the pertaining features to be included for the customers such as products, add-on features, stipulated period for the applicability of the coupon (duration type), and redemption limits, and much more while creating plans.
In addition to the aforementioned information, you can standardize the coupons by implementing and configuring them for the customers at the backend. This will enable customers to redeem their coupons for the product of their choice.
In SubscriptionFlow, you can select the maximum number of times a reward coupon can be redeemed by your customer. Moreover, as customers select particular pricing plans, merchants will have the option to customize vouchers/coupons for the selected billing plans such as monthly billing, quarterly billing, or annual billing.
Let’s say a customer purchases the “Hybrid Billing” plan at $500/month. If you set the coupon only for the usage-based billing customers then that specific coupon will not be executed on other billing plans.
Also Read: AI-Enabled SaaS for Subscription Management
Earning Points on Every Subscription and Their Redemption
At every subscription or plan renewal, enable customers to earn points and later redeem them to get discounts for the next purchase.
The minimum and maximum range of points can be set for plans or subscriptions purchase. SubscriptionFlow provides customizable features for redeeming different offers to fuel sales, and accelerate customer acquisition and customer retention. Not only that, but it also enhances the opportunities for up-selling and cross-selling. Increase your revenue potential with redemption, intelligently and smartly.
For an instance, if a merchants run an eCommerce business, then on every purchase the user will get points. Once it reaches the minimum or maximum limit for a product or service, the user will be able to redeem the points for another purchase.
This also motivates the buyers to purchase more, earn points, and get discounts just as customers do in McDonald’s, KFC, and similar other known names.
Applying Coupons and Discounts on Specific Products for Redemption
Create coupons or set up the rules and flags for reward entitlements based on your user activities and the subscription management system will make it available for your end customers, intelligently.
This enables merchants to get more precise rather than applying it to the whole plan of the product.
Through our platform, you can make customizations to the products, plans, and exclusive features to a great extent.
Experimenting With Exclusive Offers for Rewards Redemption
To experiment with the exclusive offers like vouchers, discounts, coupons, and reward points entail defining a strategy for your business and customers that suits your interest best. With that being said, you can also analyze which strategy and exclusive offer are more tempting for the customers to buy the products or services.
Albeit the fact, you can create coupons, discounts, vouchers, and many other forms of rewards that can be redeemed.
Improve your revenue potential and sales by using subscription redemptions smartly.
Make settings and customizations to the exclusive features
Once you have decided to create the exclusive features for your business it’s time to make customizations. Add limitations, expiry dates, ranges, plan limitations, and much more to subscription redemptions. The flexibility of customization is achieved through SubscriptionFlow – a highly customizable platform.
Setting up coupons, discounts, and other rewarding points for redemption gets manifolds easier with us as we enable merchants to optimize their business and strategies that lead to an increase in revenue potential and scalability of the business, eventually.
Monitor Redemption Rate
Once you have started the exclusive offers for the customers on the products and services, the next step is to monitor the average loyalty redemption rate.
It is vital that exclusive offers such as discounts, coupons, vouchers, and other similar offers must be implemented intelligently otherwise it can cause a great loss to the business. Thus, redemption monitoring is necessary for the merchants so that they know of the revenue leakages and the time a coupon has been redeemed by the customers or users of the product/service.
In SubscriptionFlow, automated reports and summaries are generated from the dashboard. Through your dashboard, you can generate automated reports and summaries to have an overview of the revenue generated and revenue leakage as the result of the coupons, discounts, or other offers.
Wrapping Up
To say it in a nutshell, subscription redemption holds great importance from the business and marketing perspective. SubscriptionFlow is a subscription management platform, that enables merchants to optimize their business by customizations, customer preferences, and limitless personalization.
Take your business to the ladder of success by scheduling a demo with us.
