The art of selling subscription services online has come a long way. Consumers in today’s subscription economy are more aware than ever before. That’s in part because millennials make up a large portion of the consumer-facing market. Being tech-savvy and financially smart, they prefer the convenience of use over ownership any day. So if you want to spur your recurring revenue business growth, understanding today’s consumer psyche is paramount. And say, you are running your subscription business through a platform like Zuora, make sure to plug in a reliable Zuora billing and revenue partner. Brownie points if this Zuora partner is compliant with PCI-DSS.
What are the best tips for selling subscriptions online?
- Make your customers see your value
- Make your pricing flexible
- Make friends with freemiums
- Make smart use of social media
- Don’t make it too salesy
- Don’t forget about buyer experience
- Don’t put off customer service
Like we said at the very onset, the new-age customer is smart. With hordes of options all around offering a similar bundle of conveniences, the interest span of the average customer is dangerously short today. From clicking to reordering, a smooth experience is non-negotiable for today’s buyer experience. This necessitates a smooth quote-to-cash process for you to grow at scale. Here is what you can do:
- Leverage a robust subscription platform handler (if you use Zuora subscription solutions, then it must be a Zuora billing and revenue partner company)
- Ensure the compliance-fitment of the Zuora partner (a PCI-DSS compliant Zuora partner is deemed best)
The world of throttling competition in subscription commerce may also lure you to enter the infamous ‘race to the bottom’. You start lowering your prices to attract new buyers, and at some point, you will have to start compromising on quality. But, no recurring revenue businesses can see growth in the face of such qualitative and quantitative losses. The way out? Apply a few tricks to the way you sell subscription services online. Here is how you can get started:
1. Make the customers see value in your subscription packages
Do you know how your customers perceive your services? Do you know their exact pain points? Creating and analyzing the ideal buyer persona can help you with the answers. With soaring subscription commerce, consumers are becoming increasingly subscription-curious. They try and test offerings from various subscription providers and cancel those that fail to thrill. So, analyze what extra value you can provide that your competitors do not – and add the same to your bundle.
When it comes to selling subscriptions and signing-up customers online, the wind also blows in the direction of value bundling. Create value-for-money combinations of complementary products and services using your existing offerings.
2. Make pricing flexible for selling subscriptions online
Consumers today want flexible pricing options, custom payment methods, multiple billing frequencies, and everything that suits their convenience. Especially to satisfy the needs of millennials and bridge millennials, offer different price plans and convenient billing cycles. A sturdy Zuora billing and revenue partner company can help scale your recurring revenue business growth. A PCI-DSS compliant Zuora partner will further ensure the stringent safety of your credit card data.
The top tips for increasing your recurring revenue subscriber base
4. Make smart and skillful use of social media platforms
The world today lives and breathes social media. With competition intensifying, it’s no longer enough to just have a profile on digital channels; you need to gain a foothold there. Though the conversion rate from social media may not be impressive, you can use this marketing channel to draw your target market closer. Create awareness and engage with your audience to keep your offerings at the top of the consumers’ mind. Be it informational blog posts or updates about your subscription packages, staying active on social media is synonymous with staying relevant today. Recurring revenue business growth can get truly recurring if social media is utilized skillfully.
5. Sell subscriptions but don’t make it too salesy
Everyone is selling something today. Ask yourself: how do you stand out? Shifting from a transactional mindset to a value-driven mindset needs a culture change altogether. It may sound confusing, but when selling subscription services online, do not focus entirely on selling! Create value instead – be it in terms of customer experience or customized offerings or something else you see fit. This will not only help you acquire new subscribers but also retain the existing ones for the long term.
Citing another example pertaining to the Financial Times: with the shift of focus from mainstream news from print to digital media, FT needed to improve its value proposition for its user base. The company tied up with a European media organization to bring in more customer-centricity. This saw a 29% rise in subscriber base with a 6-month timeline.
7. Sell subscription but don’t put off customer service
Understandably, the subscription economy is expanding rapidly with a rise in both seller and buyer bases. Having a unique product/service bundle is the bare minimum today for spurring your recurring revenue business growth. You must ensure the entire experience you hand out – from the first site visit to the repeat order fulfillment – everything is squeaky clean. Platforms like Zuora can be the single touchpoint for your order-to-revenue process.
Zuora is the world’s leading subscription management platform
Reinvent your quote-to-cash and revenue management with the world’s most reliable subscription management platform. Leverage Zuora’s SaaS solutions for your recurring revenue business growth. The subscription economy evangelist has been simplifying subscription businesses worldwide since 2007. Join forces with a Zuora billing and revenue company to ace the art of selling subscription services online.