A large number of companies across the globe are struggling under the high levels of inflation and economic uncertainty. Although now might not sound like the perfect time to adjust your business model or introduce a new offering, the subscription model is beginning to gain attention for its unique characteristics that offer a level of business protection throughout periods of uncertainty.
A number of studies have indicated that customers often opt to continue making small payments for luxuries even in times of financial hardship. Many subscription companies are centred around small, regular payments (such as monthly entertainment subscriptions for $10 or less per month) which are more affordable for customers than large one-off payments. As a result of this, despite large overall consumer cutbacks, the subscription economy isn’t feeling the burn as much as traditional retail.
So, why should you consider introducing a subscription model?
Economic uncertainty can often lead to customers making fast-paced decisions in terms of cutting back on expenses. However, many subscription products and offerings become habits for customers which makes them less likely to be removed from a customers' spending budget. The affordability that subscriptions allow in terms of breaking down payments also makes them preferable to customers in periods of economic upheaval. Recurring revenue from subscription offerings provides your business with the benefit of longer-term financial protection and assist you in periods of economic uncertainty.
When times get tough customers don't want to be forced to cut out all luxuries, which is why offering flexible subscriptions can incentivise customer satisfaction. By including the options to upgrade, downgrade and add or remove one-off extras from your subscriptions, customers aren't forced to cut ties with your business if they feel the need to reduce spending for a period of time. The flexibility of subscriptions allows customers' needs to be met even as times change, meaning that customer retention rates are naturally increased, and customers are far more likely to become loyal to your business.
Billforward’s features are centered around flexibility, so that your business can implement the subscription model that suits you. Whether you want to offer an annual subscription, monthly offerings or introduce volume, tiered, flat-rate or usage-based pricing, Billforward is here to help. We know that a one-size-fits-all approach doesn't work for subscriptions, which is why you can include a range of different pricing strategies for your products and combine extra features such as one-off charges and discounts into your strategy.
Why not book in a discovery call with one of our billing experts and see how we can help you optimize your subscription strategy!