The attraction of recurring revenue is making the subscription business model increasingly appealing. Many established businesses are transitioning from selling products to becoming service providers, while entrepreneurs often start out with a service-based approach from day one.
Unfortunately, for many companies, it is not easy to turn the theory intoa sustainable business model. Most beginwith asimple conceptwhich is easy for customers to adopt, but in the global, digital economy is also easily replicated. So when a competitor enters the market and undercuts them on price, differentiation becomes harder to achieve.
Businessesaiming to join the subscription revolution are typically looking to add more options for segmenting their customers; more flexibility around how they price and package their services and upsell and cross-sell new offerings. And they want to do this while keeping overheads to a minimum. So how can they achieve this?
Here, Louis Hall, CEO, Cerillion Technologies, provides four top tips as to howyou can monetise your service options.
- Make sure you're offering the right payment choices
From the outset you need to think aboutwhat payment options to give your customers. You mustdecide whether you want to enable people to pay by credit card, direct debit, PayPal and other methods such as bank transfer, for example. And you need to put in place the right systems to enable this. The kinds of solutions you implement will obviously depend on your business model and types of customers. However, the top priority should always be to make the process as simple as possible.