Subscription commerce isn’t new, but the way companies manage subscriptions is evolving. Customers expect transparent, timely, and customizable subscription experiences, which typically go beyond the capabilities of a standard recurring billing platform.
For the 51% of global business and technology professionals in Forrester’s Priorities Survey, 2022 who say that changing their business model is a high priority or the many businesses prioritizing product launches, subscription management software could be key.
With the right subscription management solution, B2B, B2C, and DTC companies can acquire and retain customers, drive revenue, and optimize the digital experience.
If you currently have a subscription business and think it’s time to look for other subscription management solutions, this article will help you make a final decision.
When to Start Looking for a Subscription Management Platform
A company should start evaluating new subscription management platforms when they notice challenges or opportunities related to their existing subscription processes, and when they have a clear understanding of their current and future subscription needs. Or simply only the latter if they currently don’t have a subscription business model.
Here are some key triggers and considerations:
Limited Scalability: When your business has outgrown your current platform’s capacity to handle a growing customer base, it’s a clear sign to upgrade. Scalability is crucial for accommodating more subscribers without compromising service quality.
- Inefficient Processes: Your current subscription processes are manual, error-prone, or time-consuming, signaling that automation could be beneficial. Look for platforms that can streamline processes and reduce the risk of errors.
- Poor Customer Experience: Customers are expressing dissatisfaction with the subscription services due to scenarios like billing issues, delivery inaccuracy, or lack of self-service and customization. A new platform could improve their experience and increase retention.
- Billing and Payment Inflexibility: Customers have diverse payment preferences, from credit cards to digital wallets and bank transfers. And subscription businesses often require varied billing models, such as usage-based or tiered-based pricing. If your platform doesn’t support a wide range of payment and billing options, you may be losing potential subscribers.
- Integration Needs: Modern businesses often rely on various tools and systems. If your current subscription platform doesn’t integrate seamlessly with other systems, such as your CRM, order management system, or payment gateways, it can lead to manual data entry, errors, and inefficiencies.
- Lack of Analytics and Insights:
In-depth analytics and reporting are essential for making data-driven decisions. If your current platform doesn’t provide comprehensive insights into subscriber behavior and trends, you’re missing out on valuable insights.
- Inadequate Compliance and Security: Security breaches and data leaks can be disastrous for your business. If your current platform lacks robust security measures to protect sensitive subscriber information, it’s a significant red flag.
- Resource Allocation: If the sales, customer service, eCommerce, or marketing teams are spending a significant amount of time managing subscriptions, a platform that automates tasks like discounts, renewals, and cancellations and has a business-friendly admin UI can free up resources for more strategic activities.
- Competitive Landscape: If competitors are offering more advanced subscription experiences and your platform lacks essential features that have become industry standard, it might be time to invest in a platform that allows the business to stay competitive and meet customer expectations.
- Long-Term Strategy: Consider the company’s long-term goals. If subscriptions are currently or forecasted to be a significant part of the revenue model, investing in a reliable platform now can set the foundation for sustained success.
Once the business identifies these triggers, they’ll be better able to assess subscription management solutions based on their specific needs and business goals.
Proactiv’s Success with a Commerce-First Subscription Management Solution
Proactiv, a leading $270M DTC beauty brand, set out to streamline its operations and expand its market presence via subscriptions. With goals to decrease technical debt, achieve a 75% revenue increase in a year, and ensure rapid time-to-market execution, Proactiv turned to Kibo, for its commerce-first subscription solution, as well as Kibo Order Management and Kibo eCommerce.
By consolidating technologies across eCommerce, order management, and subscription management, Proactiv is on track to reduce technical debt by over 50% in three years.
In addition to system performance, Proactiv gained key subscription capabilities that drive revenue and customer loyalty, including:
- Complex pricing and discounts strategy
- Full control of the subscription experience, including fulfillment
- integration with Moneris via Kibo’s payment gateway extensibility starter kit — improving the payment process
- Business friendly UI to create, manage, and update subscriptions
- Enhanced customer service and self-service
By switching to a commerce-first subscription solution, Proactiv exceeded revenue goals and experienced a 20% subscription growth.
A Commerce-First Solution: Kibo Subscription Commerce
Kibo Subscriptions Management is the perfect addition to manage the subscription experience — from homepage to delivery.
But why choose Kibo over other solutions?
- Kibo Subscriptions Management is fully integrated with Kibo checkout – no more pushing customers off-site to an entirely separate subscription checkout experience and risking losing conversions.
- If you have an existing subscriptions solution, you can easily migrate historical data and orders to Kibo Subscriptions Management without disrupting the customer experience.
- No need to worry about additional costs as your subscriber base grows – Kibo Subscriptions Management auto-scales.
- When coupled with Kibo eCommerce and Kibo Order Management, you can control and fulfill all online orders in a single platform.
Ready to learn more about Kibo Subscriptions Management? Schedule a demo with a member of the Kibo team to see how the solution works and can fit into your customer experience.
Buyer’s Guide: Choosing a Commerce-First Subscription Management Platform