While subscription management may seem like the kind of things only large companies such as Netflix use, the truth is that even small companies are good candidates for the subscription business model. The advantages of subscriptions are offering your customers the flexibility to subscribe rather than purchase outright (and a regular amount to make budgeting easier), and for your business, it’s a good, steady stream of revenue.
Your business is a good candidate for the subscription model if:
- You sell products or services that customers buy on a repeat basis, such as maintenance or cleaning services, or products that require regular refill supplies.
- You sell services that people need to access on an ongoing basis. A good example is a web-based software that needs regular maintenance and updates.
- You guarantee or warranty your products or services. The subscription billing model is ideal for product protection or replacement plans.
- You have a lot of accounts receivable activity. A subscription management platform is a great way to manage your regular billing process.
The subscription model has the advantage of encouraging one-time customers to become long-term customers. These repeat customers your small business gains via the subscription model can help boost your customer retention rate and your revenue.
Putting the infrastructure in place to offer your customers a subscription model is easier than you might think. You can either do it in-house or adopt an easy-to-use, Web-based subscription management platform such as Subscription DNA that will allow you to charge, refund and manage subscribers, including email marketing and communications.
Subscription DNA’s subscription management software is ideal for small businesses, and features group enrollment tools and group communications, email marketing automation, cloud billing automation and payments, intuitive membership management, CRM and premium content and paywall management. Your customers can even log in and manage their own accounts right from your Web site.
Even small businesses just beginning to use the subscription model can quickly and easily build the type of community that keeps subscription customers engaged, interested and – most importantly – loyal. Contact us to learn how you can not only attract more subscription customers but keep them loyal into the future.