Why do you truly need subscription management software?
Published: November 9, 2023
From CRM systems to marketing automation to data analytics – specific business operations require specific platforms and tools to work efficiently and flexibly. Subscription business models are no exception.
The subscription economy is growing. Video-on-demand alone is supposed to grow from 99 billion dollars revenue worldwide in 2022 to 124 billion in 2028 (source: Statista).
Software-as-a-Service is even predicted to grow more, with an increase of 18% global user spending from 2023 to 2024 (197 billion US-Dollar vs. 232 US-Dollar).
And amidst trends such as the sharing or circular economy as well as new business models that have gained traction in the last years (food kits, surprise boxes, etc.), it’s safe to say that subscription models are and will be a core element of any market in the 21st century for both B2B and B2C businesses.
Download our Buyer’s Guide to set up your own short list and evaluate it based on the criteria offered in the guide to find the solution that fits your business.
New business models require new software
But as with every big movement within business operations, a subscription business model needs its own specific set of tools and platforms so users/employees can create the right offers and purchase flows to attract customers and increase conversion rates.
For example, the explosion of different communication channels has spurred a growth in specified marketing automation platforms and CRM applications. They enable marketing and sales teams to gain an overview of all customer channels, manage different communication strategies on one platform, connect workflows for customer journeys and track and measure KPIs.
Likewise, subscription offers require a solution that fits the business model. Subscriptions are rarely static, they expand and change with development cycles, customer demands, market fluctuations and revenue impact. Customers purchase and keep on purchasing on a regular basis but these recurring contracts need to be seamless and effortless for customers who expect simplicity and flexibility.
On the other hand, subscription companies need to be able to adjust pricing models, discounts and coupons to react to market trends, marketing data, and seasonal trends (e.g., Black Friday, Christmas, etc.).
Subscription software improves the subscription lifecycle
Subscription management software is designed to support with the entire subscription lifecycle and is optimized to offer an intuitive experience for customers on the one side and fast insights and efficient processes for users.
A CRM or ERP tool that also offers a few subscription functionalities will never have the resources to fully concentrate on technological development, customer trends, and crucial requirements regarding subscriptions whereas a subscription vendor is 100% focused to create a sleek, efficient and varied platform that adapts to your business, your markets, and your customers.
- Easy management and customizing of offers (with different subscription models, add-ons, and features).
- A variety of discounts, coupons, free trials, and other incentives to entice new customers or reward existing customers for their loyalty.
- Payment automation and a wide selection of payment methods to be able to scale internationally.
- Dunning communication flow for easy and customer-centric handling of unpaid or failed invoices.
- An intuitive and branded front-end for customers that gives an overview of all offers, helps with the selection and creates a painless checkout experience.
Want to find the right software? You can try out our intuitive subscription solution Billwerk+ Optimize right now with a free test account or set up a demo with our expert sales team to see what Billwerk+ solution fits best to your business.
