Top 3 Benefits Subscriptions Based Billing Offers To Businesses & Customers

When do you think Netflix was founded? Make a guess, 2010? Or 2015? Or 2000?

Well, the accurate answer is 1997. Since then, it has become a well-known entertainment source and managed to secure a considerable market share and stable revenue because of its subscriptions based business model.

And, Netflix was not the first one to benefit from the subscription-based business model. A century ago, the property rental business was also running on a subscription-based model, although the term of use was different.

Hold on! In a layman language, Subscription is the process of gaining access to any service or a product for a limited time via recurring payment. In the whole process, the subscriber doesn't own the product, rather enjoys it by paying a fixed or prorated amount on a monthly, bi-annually, and annual basis. Another best example of subscription-based businesses is SaaS companies.

We arrive at the problem statement of how these businesses are managing subscriptions of 1000 or above subscribers and manage to bill them accurately? The best answer is via subscription management software. And, among hundreds, I have chosen to go with Zoho Subscription.

Two reasons force me to make this choice. First, Zoho offers complete CRM and ERP solutions that include multiple over 40 applications. Secondly, you can integrate with any application either within the Zoho family or with third-party applications. Lastly, you can reach out to any Zoho CRM Consultant globally.

What can A business get from Offering a Subscription?

A business can get a lot of things by offering a subscription. First, there are multiple types of subscriptions, which means as a manufacturer, you can offer subscription boxes of your products. Or if you are services provide, for an instant a fitness center then you can offer membership subscription, just like the ClassPass. In addition to this, the subscription-based business model can offer you:

1. Recurring Revenue

You might have heard the most famous phrase that 'customer retention requires fewer efforts than acquiring new.' This means, if you can provide quality to your customer, then you can expect to retain them for a long time. Since switching a product require a lot of effort on consumers' account, therefore, the customer tends to stay loyal until they are given a reason to leave. Hence, a subscription-based business can get recurring revenue from the same client by providing an experience customized to their taste.

2. Low Cost For Retention Strategy

Another thing that plays a significant role in the success of Subscription is, it requires less cost in customer retention. Since the marketing and sales managers have access to every bit of customer information and behavior, they can utilize this information to produce an effective marketing campaign or sales pipeline strategy targeted to sell, resell, and nudge subscribers to upgrade.

3. Predictable Revenue Forecast

Accurate revenue prediction is the third advantage that the subscription-based revenue model offers to businesses. Although the customers are bound to go, with detailed matric, you can sort voluntary churn from involuntary churn. And utilize an AI-powered bot to automatically follow up with subscribers for credit card updates, pending payment, or another information-related chargeback claim. Last advantage that Zoho Subscription offer is comprehensive inventory management.

Since you know who your customers are and what they want, so as a manufacturer, you can order the exact quantity of a product and save money on product expiry or returns. For Zoho Subscription implementation or customization, you can reach out to Zoho CRM consultants at Techloyce for personalized CRM and ERP Solutions.

Why Customers Loved Subscription-Based Services?

In addition to the business, the adaptation of Subscription has become easier because of the value it offered to the client. If you care to notice, now you can get a subscription to almost everything from groceries to cleaning products and from baby products to toiletries, right at your doorstep, every mount. Some other reasons for the success of Subscription include:

1. Convenience

As I said, you can get your product delivered right to your door. The only thing you need to do is to select a product and sign-up for the Subscription. And, you will notice how it reduces your physical hustle of hunting, comparing, and reviewing products or services. For new mommies, tiny organics and Play Kit is an excellent option. It contains all the essential things that a mommy needs.

2. Customer Experience

Well, the heart of a subscription is customer experience. And, this is one of the very reasons why Brinch Box has established a name. Since it is like humans that they get bored by using the same thing. Therefore, to reduce such things, the companies offer an element of surprise. This way, the customer feels hooked and valued.