Master Subscriber Retention: Proven Strategies for Long-Term Loyalty
Subscribers are the heartbeat of every subscription business, and therefore, subscriber retention is an absolute priority. This can result in not just profitability, but also long-term relationships between subscribers and the business. By placing retention at the forefront, businesses can create a pipeline of loyal subscribers that will stay committed with the business for a prolonged term.
In the book titled, Leading on the Edge of Chaos, authored by Emmet C. Murphy and Mark A. Murphy, even a small 2% increase in subscriber retention can have the same financial impact as reducing costs by 10%. It also mentions that customers that stay with the business for a longer period are likely to bring more value to the business than new ones.
Also, another research from the Harvard Business Review states that a 5% increase in customer retention can boost profits by 25% to 95%, emphasising the relevance of retention strategies .
Even though a subscription business revolves around recurring revenue and repeat customers, most often these platforms generally invest into winning new customers or keeping the wrong ones. This can be pointless and unproductive, leading to waste of time and resources.
Engaging Strategies to Keep Subscribers Loyal
Retaining existing subscribers is far more critical in subscription management than one might assume. Any dip in the subscription retention rates may indicate that the product or service is overdue for an overhaul. Below are some of the strategies that can be adopted to retain existing subscribers and to identify and keep high-end subscribers.
Make them feel special and wanted
This might sound insignificant, but it has profound effects on the way subscribers behave in the subscription management landscape. There are numerous ways to make the subscribers feel special and wanted. One way to get to this is to send them messages that is relevant to their behavior and preferences. Also, identifying loyal subscribers and indulging them with special discounts and promotions can work wonders in retaining your existing list of subscribers. Offering personalized recommendations by understanding usage patterns is a great strategy to get the subscribers to stay with the system.
Another way to retain valuable subscribers is by giving them perks and access, tailored to their unique needs. This can be in the form of access to new features as soon as it is launched, rights to exclusive articles or any form of personalized discounts. This will make them value their experience with you, making them excited to stay with you and not switch to your competitors.
Seamless onboarding experience that sets the stage for success
Customer retention is more challenging in subscription businesses when compared to other industries. And since subscription model is more about customers than the product, customer retention is of prime importance. This makes it even more important for these businesses to go the extra mile to achieve these goals. According to a blog in SMSCountry (a messaging platform) a well-crafted onboarding experience increases customer retention by 50%. This is also a way to create a good first impression.
Invest in a subscription analytics platform
To retain customers, it is important to understand why they leave. Only a proper analytics platform can give insights into this. Subscription analytics can help businesses identify the reason behind any kind of rapid cancellations or dissatisfaction existing among customers. The data derived from the analytics platform can predict subscriber behaviors, reasons behind churn, and the reasons why some subscribers have a short lifespan with the platform.
Also, modern analytics systems can easily spot at-risk customers and allow the business to give targeted solutions or personalized outreach thus improving retention rates and reducing churn.
Regular feedback and customer engagement – Talk to your customers
Talking to your subscribers and understanding what they seek from your business is key in retaining them. This can be through a printed survey, online survey, over the phone, or in person.
This way you can save on expensive market research. It is important to be empathetic to subscriber’s issues and back it up with action. One unhappy customer can easily damage your reputation. The right subscription management tools can ensure smooth subscriber interactions and enhance the overall subscriber experience.
Continuous value delivery through updates and improvements
Delivering value at every touchpoint in the subscriber journey is essential for retention. By doing so, subscribers stay engaged and excited about the subscription management software leading to high retention rates. Also, value delivery should be a continuous process and not a one-time affair. This can strengthen the subscriber’s bond with the subscription business leading to subscriber satisfaction, loyalty and repeat business.
Utilize smart dunning management systems
Dunning is an effective subscription management tool utilized by Saaslogic to get subscribers to make their payments in a timely manner. According to Stripe, 25% of lapsed subscriptions are purely due to payment failures. Dunning involves more than just informing; it actively manages payment collections through reminders and retries. By automating the dunning process, customer retention can be improved which is 5x times cheaper than acquiring a new one. Appropriate subscription management tools like automated payment reminders and retries can significantly reduce payment failures and improve customer retention to a great extent.
Offer easy and customised subscription management
Subscription management should be simple, flexible and personalized for subscribers to stick around in the long run. The subscription management software should be straightforward and easy-to-navigate. It should empower subscribers to easily modify plans, update billing information, pause/cancel services and reactivate subscription, rather than cancel it upright. Subscribers should have the flexibility to upsell and cross-sell their subscriptions based on their evolving needs which can result in increased lifetime value and subscriber retention.
Let’s wrap it up!
As with any business, particularly those in the subscription world, subscriber retention is the key to protecting valuable revenue from slipping away. Subscription management tools like dunning, automated billing, fraud prevention can easily address this concern. Ultimately, it is subscriber retention and happiness that forms the core of any subscription business. And all efforts should eventually lead to this.
So, if you are looking for a subscription management software that can give you this ease-of-use and a seamless experience, look no further than Saaslogic! Try our platform and discover how we can transform your business.