Subscription Billing Year-End Review: Looking Back in Order to Plan for 2023

According to Forbes, the eCommerce subscription business will grow to $904 billion by 2026.

As per Bloomberg’s report, the growth of the SaaS subscription business market will touch the mark of $ 208 billion in 2023.

Likewise, many other authentic resources predict a healthy growth of the subscription business market in various domains. If you are also part of the subscription business market, then hopes for business growth are high.

However, it is important to review the year that has passed to leverage the opportunities in 2023. So, let team SubscriptionFlow take you through the year-end review of the subscription business market.

Also Read: SaaS Subscription Business Trends That You Need to Pay Heed To

Subscription Boxes

The concept of a subscription business model is incomplete without subscription boxes. Just like in any other year, subscription boxes have outperformed in 2022 as well. Previously, experts opined that Covid was one of the reasons for the success of many new subscription boxes in the market. However, the way these boxed subscriptions have survived in such a competitive environment is commendable, and it is for sure that the future of subscription boxes is still bright.

The option of customized subscription boxes is a new trend that has given a boost to the growth of the subscription box market. Because customers want personalized experiences and to be valued. So, if you are already offering boxed subscriptions, then it is high time to move towards customized boxes. Empower your customers so as to retain them.

Subscriptions for the Content

The subscription business model is the best one for content creators. Whether they are newspapers, magazines, or OTT platforms, the content can be divided into subscription plans and offered to the subscribers. The recurring billing model empowers content creators to control the content as well as the audience. From articles to podcasts and from podcasts to movies and series, every type of content can be sold on the subscription business model in 2023 because there is no other business model that can beat subscription billing for such businesses.

Intelligent Pricing of Subscription Plans

Many high-tech SaaS platforms offer a suite of applications and features. However, when it comes to subscription plans and their pricing, they charge a hefty amount. Sometimes, there are just basic features for which they offer subscriptions but recurring charges for them are beyond budget for startups, entrepreneurs and small and medium-sized businesses.

To perform better in 2023, it is important to price subscription plans intelligently. It is high time to bring the marketing and sales teams together on the table to come up with the best prices for subscription plans that can play role in pushing more revenue into the revenue stream.

PLG As the Future of SaaS

Sales-led businesses only focus on the sales cycle and the focus of marketing and sales teams rotates around onboarding customers. Contrarily, product-led growth (PLG) makes businesses focus on product development to the level where customer onboarding, customer support and care will need to put in minimum efforts to retain the customer.

Today, SaaS subscription businesses are shifting to PLG so that they may not need to conduct training sessions for new customers. Support teams will not need to be on their toes all the time to prevent churn. For instance, today, if a new customer subscribes to Netflix or Dropbox, no one needs to give new subscribers a product tour. The product itself is user-friendly, and there are chatbots where the developers think things can be arcane for users.

In 2023, the PLG will remain the focal point for SaaS subscription businesses. Many platforms e.g. SubscriptionFlow have already shifted to PLG which will help users to onboard the platform and leverage its feature.

Also Read: How PLG Companies Can Optimize Their Sales with SubscriptionFlow

SaaS System Flexibility & Scalability

The scalability of SaaS subscription-based platforms is crucial. The system should be capable of integrating with third-party applications. SaaS platforms that opt for recurring billing not only need to integrate third-party applications but also payment gateways. These integrations are necessary because technology changes so fast. New applications and software are introduced every day. So, SaaS platforms offering subscriptions need to be flexible enough to integrate new software as and when required. Established enterprises cannot operate all business processes with a single software. They need a suite of software that is only possible if SaaS platforms are flexible and scalable to integrate with other applications.

One thing is for sure the subscription business market is going to grow in all domains even in 2023. The only thing that the subscription business community needs to do is to keep an eye on the performance of the year that has passed and prepare for the future.

Schedule a demo with SubscriptionFlow because the way it has facilitated its clients in 2022 shows that it is the best subscription management platform for all subscription businesses. You can get any software and payment gateway integrated with this robust recurring billing platform.