Learn About Entitlement Management Software Solutions

In the contemporary world, not just businesses are shifting to harnessing the recurring needs of their customers but also there has come a global trend at the customer end to prefer subscriptions—a recurring billing model. However, even for the same subscription plan, different customers have different preferences. And when it comes to fulfilling these preferences, there comes fierce competition. It is your choice to fish customers in a pond or the ocean. But of course, the risks of fishing in the ocean are far more than you have anticipated. The fisher sitting just beside you might have a better treat to offer the customers who are your target as well.

For instance, if you offer subscriptions for food, the preferences will vary from customer to customer. Some health-conscious customers would probably like only one pizza in a week, but fast-food lovers might love to have more. So, in your subscription plans, you will need to define the features of the product that you offer.

Entitlement management software enables you to cater to such varying needs of your customers and satisfy them to the maximum. Offering entitlements is the best option to increase the slope of the customer satisfaction graph.

In this blog, team SubscriptionFlow will help you know the scope of entitlements for subscription businesses, and how SubscritpionFlow offers its clients the option to use entitlements from its platform.

What are Entitlements?

Entitlements are the rights given to the customers to use certain products or features. In the SaaS business industry, there is a huge importance of entitlements. SaaS companies improvise the basic concept of entitlements as per their business needs. Entitlements are linked with the:

  • Product value
  • Customer experience
  • Customer satisfaction
  • Customer churn rate

Also Read: This Is How Self Service Subscription Management Portal is Improving Customer Satisfaction for SaaS Companies

The value of the product is its perception in the mind of your customers. Entitlements enable you to follow a more relationship-centric approach so that you can increase the product value for your customers. For instance, add-ons can be offered as added feature flags as per the customer’s needs and requirements. If a customer offers subscriptions for dolls, then he can offer entitlements for accessories, clothes, and dollhouses with the core product line of dolls.

When add-on entitlements fulfil the customer needs, the satisfaction and experience of the entire customer base automatically improve.

Sometimes, entitlements are used to retain the existing customer base. The customer subscriber journey is monitored through the subscription management software, and when different indicators show that a subscriber has come to the verge of leaving, entitlements can be planned for such customers.

Another example of an add-on can be personalized discounts, vouchers, or coupons that can be applied to specific customers so that they can be brought back. With SubscriptionFlow, you can manage which product features you can allow in the name of vouchers and discounts.

How to Establish Your Entitlement System?

Entitlements offer numerous benefits, however, you need a planned entitlement system to enjoy these benefits. The prerequisite to designing an entitlement system is to know your product and know it well so that you can identify the room where the entitlements can be offered.

For instance, if you offer subscriptions for flower bouquets, then you can offer entitlements for your product as:

  • Size of the bouquet
  • Types of flowers
  • Colour of flowers
  • Number of flowers in the bouquet
  • Additional leaves or filler flowers
  • Additional finishing touches

When you are clear about your product, you are in a position to set a perfect entitlement system. Nonetheless, you need to have subscription management software as well that can help you offer the end customers subscriptions and the list of features for the products that you offer in certain subscription plans that they are entitled to have.

Also Read: Why Value-Based Pricing Approach Is Important For Your SaaS Business

Implement Your Entitlement System with SubscriptionFlow

SubscriptionFlow offers the option to its customers to manage entitlements from its robust subscription and entitlement management system. When you have onboarded SubscriptionFlow, you can add products for which subscriptions are being offered. Plans (subscription plans) are created against these products, and then, you can add entitlements or access to the product features or loyalty rewards/compensation that will be shown to the end customers as entitlements. This will help businesses to retain customers and revenue.

For instance, if you offer subscriptions for pet care, then entitlements under your subscription plans might include pet care accessories or raw seafood, biscuits, treats etc. When managed through the SubscriptionFlow, they will be considered features of the product for which subscriptions are offered. Your end customers will be entitled to these product features as per your entitlement system.

Entitlement Management Affecting the KPI  Performance

As has been mentioned in the beginning that entitlements are linked with customer satisfaction to decrease customer churn. Following are a few of the KPIs that affect when you offer entitlements:

  • Customer churn rate
  • Customer retention rate
  • Revenue retention rate
  • Customer satisfaction
  • Customer lifetime value (CLV)
  • Customer Acquisition Cost (CAC)
  • Annual Recurring Revenue (ARR)

Entitlements are linked with such KPIs because many subscription companies opt for the strategy that they entitle their customers to use certain product features when the customer is about to cancel subscriptions. Such unhappy customers are identified and offered lucrative entitlements. For instance, coupons and vouchers can be given to acquire new customers or be planned to stop the leaving customers. Coupons and vouchers not only retain customers but also increase brand loyalty and brand awareness.

When customers are retained, the revenue leaks caused by the voluntary churn get automatically mitigated. The Customer Lifetime Value (CLV) is the total amount of profit contributed by an individual customer. Entitlements stop the leaving customers and enhance their Customer Lifetime Value (CLV).

Also Read: The Role of Customer Success in the Subscription Business and How to Embrace It to Excel?


At present, the corporate world is more customer-centric than it has ever been before. In the subscription business market, the competition is already at its peak. Entitlements are hence another way to fight your competitors. If you want to keep your subscribers loyal and ensure customer success, plan your entitlement system today. Implement it through the SubscriptionFlow platform. We enable you to manage entitlements and all subscription business processes from a single platform. Entitlements can be far more than product feature management. You can discuss your idea of entitlements with the team SubscriptionFlow. Our system is flexible enough to incorporate changes as per your entitlement business needs.