Keys Benefits to Build a Successful Subscription Business
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December 16, 2022
Nexway Infographic | eCommerce trends & statistics to watch out for in 2023
March 14, 2023Keys Benefits to Build a Successful Subscription Business
Keys points
More and more customers are looking for ways to streamline their purchases and make transactions easier. When it comes to software and online purchases, those transactions are increasingly moving to a subscription-based model, where customers put their assets on autopilot mode. The subscription-based model has become so popular that Salesforce predicts that every new software company will now offer subscriptions. Even more, it tells that 80% of legacy software vendors will have shifted their business models to provide customers with a subscription service.
The subscription ecommerce market is projected to reach $473 billion by 2025
The best part? Subscription services are what customers want. 15% of people who shop online now pay for at least one subscription, and nearly 90% of businesses are looking for ways to adapt their online payment platforms so they can handle recurring subscription payments.
Believe the stats!
The subscription eCommerce market is projected to reach $473 billion by 2025, up from $15 billion in 2019
By 2022,
53% of all software revenue will be generated from a subscription model
70% of business leaders say subscription business models will be key to their prospects in the years ahead
In the US, 38% of businesses say they will increase their number of subscriptions
Benefits of Saas Subscriptions
The subscription-based business approach has undeniable advantages. One of the benefits of a SaaS platform is that it dramatically improves the customer journey, experience, and retention. But not exclusively.
1. Fast growth – if you get a product-market match quickly and can obtain funding, the potential to scale your business is huge and can be achieved extremely fast
2. Ease of deployment – as SaaS lives in the cloud, it can be easy to make quick adjustments to your product and to sell service from anywhere
3. Predictive revenue – the subscription model allows you to know fairly consistently how much revenue you can expect. There is no seasonality in a subscription model. Annual or monthly contracts offer security that many other business models cannot guarantee
Best Practices for your Subscription-Based Business
Find the Right Partner for Subscription Success
When considering a partner to power your global subscriptions business, there are several complexities to keep in mind beyond selecting a platform.To optimize customer experience and maximize revenue, you need the right processes and expertise to effectively manage every aspect of doing business worldwide. Any vulnerability in your back-end processes can expose your business to many liabilities and risks.
Power Up Your Subscription Business Model with Nexway
Why waste time building a recurring revenue model on your own when you can rely on a full-service subscription solution to do all the heavy lifting for you? Nexway is an eCommerce platform that is purpose-built for managing high volume renewals and enables to collect, manage and maximize recurring payments.
Nexway Solutions can stand by clients from implementing a recurring model strategy to day-to-day operational follow-up & optimization
Based on our expertise in the subscription field and considering the variety of our partners, Nexway Team can intervene early to assist you with your subscription strategy and identify the success drivers of each recurring model.
Generic or specific?
Nexway Solutions have the ability to implement successful generic subscription modules as well as being fully customizable. No matter how mature your business is – Nexway fits powerful subscription models to your business to offer the best user experience. Focus on your core business, we handle the rest.
With the ability to be a Merchant of Record in 50 countries, Nexway manages all tax requirements for its subscription customers. We not only simplify subscription billing but also streamline all aspects of subscription management by providing you with a central hub to manage:
- Upgrades
- Cancellations
- Pricing plans
- Trial
- Integrations, and more – with a specific focus on helping you promote subscriptions and reduce customer churn like never before.
Payment methods should not be a barrier for renewal.
Credit cards are not the only way to pay for online transactions – There are more than 300 different types of online payments worldwide. Allow customers to pay via any payment method from cards to direct debit, online or offline, without worrying about security and compliance.
Don’t let the choice of your currency limit your possibilities. Help your customers to renew their manual subscriptions with a payment method that suits them most. Align customer-centric approach with personalized, targeted smart campaigns, whatever subscription model is chosen (manual or automatic). Grow your business and boost your conversion rate abroad by optimizing payment options.
Maintain reliable data pipelines for confident decision-making.
Because SaaS business is constantly evolving and as new technologies merge and customers need change, optimization is an ongoing process.
- Analyze in-depth performance data through the Nexway Business Intelligence system / tool to make confident decisions
- Deliver exceptional customer experiences via powerful analytics dashboards, forecast and simulation tools, and real-time customer insights
- Check essential key indicator performance and make plans for adjustment and improvement
– Recurring revenue by month or year (MRR/ARR)
– The average revenue per user (ARPU)
– Customer lifetime value (CLV)
– Renewal rate
– Churn rate
– Renewal Email Campaigns
Create, schedule, and send regular email updates to keep your customers informed on their subscription status through our built-in CRM platform. Minimize churn and boost lifetime customer value with effective renewal marketing scenarios.
– Localized Customer Care
Enhance your competitive edge thanks to a localized customer care to help you create a positive customer service experience that can boost trust and build long-term brand loyalty. Nexway Customer Care supports your customers for all payment issues, subscriptions, and access to the product. We answer emails and phone calls in six languages over two time zones, refunds are managed by Nexway, and your end-user data is protected and managed with the best care.
No matter how you handle subscriptions today, Nexway can fit in with your existing tech stack.
Is your business ready to be a subscription business?
The easy answer is yes!
If you run an e-commerce business or operate, you’ve got nothing to lose by implementing a subscription-revenue model. However, talking about the benefits of a subscription business and actually transforming your business into a subscription business are two separate things. Fortunately, we’re here to help make that as smooth and seamless of a transition as possible. Nexway teams will not only help you build a successful subscription program that drives long-term business value, but will also work with you hands-on to ensure that your subscription business creates deeper, more loyal relationships with your customers over time
There is no better time than now to give your revenues the boost they deserve. Contact us today to learn more.
