Presented by Recurly
It’s time to step up your subscription game in 2020! Real world case studies will show you how it’s done. Learn how hybrid commerce helps big brands maximize revenue growth and brand value, ensure business continuity, stay competitive with subscriptions and more, when you join this VB Live event.
Fifteen percent of online shoppers have signed up for one or more subscription services, and the market has grown by more than 100% a year over the past five years, generating more than $2.6 billion in sales in 2016. As part of this, direct-to-consumer (DTC) business models are gaining traction, with 87% of manufacturers considering D2C channels to be highly relevant, and almost half (48%) turning to these channels to help increase revenue share. And Gartner claims that all new entrants and 80% of historical vendors will offer subscription-based business models.
The competitive advantages to businesses that adopt the subscription model are undeniable. Subscription commerce generates predictable, recurring revenue, enduring subscriber relationships, unique insights, and operating efficiencies. Billing continuity is a key element in promoting subscriber retention, reducing churn and in realizing the significant benefits the model provides.
Realizing a true competitive advantage from the subscription model, however, requires moving beyond subscription billing to subscription management. A subscription management viewpoint requires understanding the subscriber lifecycle, discerning trends across multiple acquisition channels, and having insights into the optimum mix of pricing and plans. These are critical elements to achieve scale and volume.
Because subscription businesses have a relationship with subscribers that is ongoing, new data related to marketing, payment, and customer lifecycle generated regularly, at each new billing cycle. It offers a huge amount of data, far more than the one-time purchase model ever could.
But even with all those advantages, businesses can’t stay static. As the market matures, the world of ecommerce continues to evolve, becoming increasingly fluid. Subscription merchants are finding that one-time purchases of goods or services have a tremendous pull of their own, especially when they complement their recurring component. Those purchases are a significantly useful opportunity to increase subscribers’ usage and enjoyment of their subscription product or service while providing additional sales opportunities.
It’s being called hybrid commerce, when businesses adopt this strategy, adding one-time items to recurring line of business, or vice versa, with a more traditional one-off company leaping into the subscription game when they expand their offerings to include an additional revenue stream.
Under this model, an optimized customer experience is one in which both types of purchases can be completed within the same transaction, a process that is more complex than it may seem and one which requires the right subscription management platform.
As more and more companies embrace the subscription commerce model as a way to acquire customers and generate predictable, recurring revenue, the competition grows fiercer, and the battle is most often waged around customer retention, and finding more seamless, powerful ways to add value and ensure subscribers consistently feel like they’re getting their money’s worth, which keeps them loyal and coming back.
Staying competitive in a field that’s getting increasingly crowded and complex requires businesses to stay on top of the market, both broadly and by keeping a sharp eye on their own customer base. That means having the right subscription management platform. It will offer deeper subscriber and business insights, improved operating efficiencies, billing continuity that’s accurate and efficient, more effective ways to increase retention by decreasing churn, and the flexibility to adapt your subscription plans, pricing, and promotions based on data around what drives subscriber behavior.
To learn more about how subscriptions help companies gain market share, the trends and technologies that are shaping the subscription model field, and what it takes to keep growing – with real world case studies, don’t miss this VB Live event.
Don’t miss out!
- How forward-looking businesses are using subscriptions to gain a competitive edge, including real-world case studies
- The latest subscription trends and technologies to leverage for accelerated growth
- Ways to build brand value and deepen customer loyalty, including hybrid commerce, alternative payment methods, frictionless trials, delighting customers, and more
- Emma Clark, Chief of Staff, Recurly
- Ken Fenyo, Consumer Markets Lead, Fuel, a McKinsey Company