Subscription Business Market To Gear Up for Recession Calls

As per statistics, 78% of adults all over the world are using subscriptions.

Also, more than 50% of the revenue of world is generated by businesses that are operating on the subscription business model.

So, one thing is clear, subscriptions are going nowhere whether there is a recession or not in the market, but here, the point of concern is that if a recession hits the market, it is going to have its effects on the subscriptions.

According to a survey of PwC, some experts say that the recession is already here while some predict it is about to come. Also, certain events in the market are sufficient to prove the downturn of the economy overall.

However, here, our concern is the businesses that opt for the subscription business model. This year, Netflix (the renowned OTT subscription offering subscription packages) experienced affected revenue growth. Also, the prices for its shares fell about 70%.

What does it show?

These are the effects of the downturn in the subscription business market. Our team is here to guide you on how to prepare for the upcoming days of difficulty.

Customer Engagement Optimization

The first thing that you need to do as a SaaS subscription business is to increase customer engagement now. This engagement will help you now and in the future. Even if your customer base is very loyal, you should increase communication with your entire customer base. This will help you keep all your customers in the loop. You will know about the problems that the customers are facing because of the recession.

If the economic issues are taking your customer to the verge of cancellation of subscriptions, then good communication will help you keep those customers somehow on board. You can facilitate these customers by finding a win-win situation for both the customer side and the retailer side.

Acquiring customers is already an expensive deal, and in the days of recessions, the affordability of not only customers but businesses is also affected. So, rather than keeping the acquisition as your priority, you can rather focus on retention so that you may survive the recession. And when it comes to the retention of customers, communication is the first thing to pay attention to.

Customer engagement at this stage will also help you engage with investors. Though it is difficult to generate returns during a recession, things can be managed if you increase customer conversion now.

So, start having an eye on SaaS customer engagement metrics and come up with a better SaaS customer engagement model to fight the looming recession.

Conversion Rate Improvement with and PQLs Prioritization

When there is a recession, you cannot expect enough conversion rates. So, now is the time to pay attention to focusing on prioritizing product-led leads to

Increase the conversion rate.
Increase the marketing activities
Improve your upsell and cross-sell
Facilitate a market for new features
Introduce add-ons that the customers need
Ask your customers for referrals

Achieving these objectives helps you streamline the ways to identify and prioritize the PQLs and eventually increases conversion rate and revenue growth. When the customer base expands, investors get attracted to the businesses.

It is high time to increase customer engagement so that you can boost conversions while you operate on the subscription-based business model. When conversions increase, investors automatically come on board. Thereby, the equation is simple enough!

Boost Subscription Activations

Not all the subscribers that you have on board would be active. Sometimes, customers get on onboard, but they are reluctant when it comes to the activation of the subscriptions. So, deactivated subscribers are more like a liability not an asset for SaaS businesses.

Come up with a strategy to get your dormant or deactivated customers activated. The best way to do that is to have a proper customer engagement plan that you should start right after the onboarding of a subscriber. Also, give your new subscribers an overview o walkthrough of the whole system. Another important thing is to personalize the customer experience so that they not only get subscriptions but activate them as well.

Work on Proration

When there is an economic downturn, customers try to downgrade their subscription packages. So, when there is a call to a recession, it will happen. What you need to do as a subscription retailer, is make adjustments to the subscription packages now.

Also, make proration as smooth as possible so that the customer can easily switch subscription plans. When switching to subscription plans is easy the chances of customer retention during the recession are high. However, any difficulty in this process can annoy customers. And the customer whose affordability is already affected will not think for the second time before cancelling the subscription.

For instance, a person has subscribed to Netflix Premium. As the OTT platform is not the basic need of people so, the chances are high that many people will either want to cancel subscriptions during the recession or downgrade to a Basic or Standard plan. What needs to be done is the ease of downgrading and upgrading to at least stop customers from cancelling subscriptions altogether.

Read Also: 14 Key Metrics For Subscription Growth to Monitor

Deal with Recession with Data-Driven Product-led Growth

If you are part of the subscription business market and worried because of the upcoming difficult times, then SubscritionFlow is an economical option to get your subscriptions managed. Our experts will help you with customer engagement strategies to get through the recession.

Schedule a demo for SubscriptionFlow now!