Imagine you have an online subscription
In the first scenario, it’s easy to manually coordinate and manage your customers’ orders and subscriptions, but if the second example describes your situation, managing the subscription plans of every single subscriber manually can be quite a nightmare. At this point your business needs an efficient subscription management system.
What you need to succeed here is subscription management software. This is how businesses that run
What is a Subscription Management System?
In simple terms, a subscription management system is what helps you collect customer’s data, safely store subscribers’ information, and manage a diverse number of different subscription plans. With a subscription manager in place, it becomes so much easier to manage the accounts of all subscribers registered with your business.
It’s like having to pick out a needle from a haystack without needing to rummage through the entire hay pile
For organizations that offer
How Does Subscription Management Software Work?
Depending on the uniqueness of your business, the subscription management software you use might differ from those used by other businesses. These slight differences ensure that the unique features and diverse functionalities that each business needs are available. While all subscription management systems are not the same, some common features that characterize them.
- Differentiation of subscription plans: your subscription management software should allow you to create different subscription plans to cater to the needs of the different categories of customers patronizing your business. For instance, depending on a customer’s preference, they can go for the basic, medium, or platinum offer. They should also be able to choose the billing frequency and billing quote (and if possible, get a free trial and cancel whenever they want to).
- View subscribers transactions history: an ideal subscription management software allows business owners and administrators to review any particular subscribers lifecycle, plan changes, and current subscription.
- Manage subscribers accounts: a typical subscription management software is also designed to help business owners manage their subscribers accounts. This includes prompting them to switch to a more suitable subscription plan, where necessary, keeping
them up-to-date on relevantchanges, and maybe allowing them to switch to a better or more flexible payment method.
- Automated billing: this is one of the main purposes of subscription management software. It offers you an improved or advanced billing system that effectively eliminates the need to collect subscribers’ payments manually. Billing automation is one of the juices of any subscription management system. There might also be a possibility for you to process a refund where applicable. This is why subscription software often features multiple payment gateways such as PayPal, Razorpay, Stripe, and Authorize.net to give customers enough options to pick from.
- Generate revenue statistics: besides giving you an overview of all subscribers’ information, software management systems should be able to provide, at a glance, the amount of revenue coming in from the subscribers. And it should also be able to render this information
in an easy-to-understand format,perhaps including graphs, pictograms, infographics, etc.
Stages of Subscription Management
Subscription management software typically takes a customer through a subscription lifecycle that touches on the following stages:
Pre-Signupstage: at the point where prospective customers are still browsing through your website, subscription management tools can be used to educate them on what they stand to benefit from, including pricing, payment options, and special offers.
- Discount and special offers: sometimes, these can be used
to re-market hesitantprospects and spur them on towards starting a subscription.
- Upgrade/downgrade Management: subscribers may wish to upgrade or downgrade to a more comfortable plan. Your company’s subscription management software should be able to help customers navigate this stage with very little help.
- Cancel/End subscription: A subscription management system ensures a customer’s subscription ends at the specified date and also flexible enough to allow subscribers to cancel when they choose to. However, subscription management tools can be integrated with email marketing and CRM systems
to automatically re-market customers,instead of letting them just vanish into thin air.
Understanding the Difference between Subscription Management and Recurring Billing
Specifically, subscription management systems manage and oversee the interactions
- Updating customer information
- Upgrading and downgrading subscriptions
- Reporting revenue generation and subscriber numbers, etc.
- Managing subscribers’ preferences.
Recurring billing, on the other hand, focuses on making sure that every stage of the billing process runs automatically without hitches. This includes,
- Invoice generation, which also involves handling of proration
- Payment tracking, and
- Safely storing payment information
More on How Subscription Management Can Help Your Subscription Business
Here are more ways a subscription management software can complement the hard efforts you put into your business.
- First and foremost, subscription management software empowers your business with a smart pricing system. As customers are coming on board, there’s a pricing plan that matches the value they’re getting from your business.
- Subscription management software makes for easy tracking of changes with customers, thereby giving you actionable insights into how to better manage customers’ subscriptions.
- With a subscription management system in place, users can keep track of subscription revenue, changes in subscription trends, number of subscribers, and can view the report
in an easy-to-understand exportableform.
- Subscription management software helps your business improve its relationship with customers by enhancing communication between users and the business.
- They usually
have self-service portalsthat enable subscribers to make changes without having to contact customer support.
Are you looking for the right software management system for your business? If you run a subscription business, there are different subscription management software to help you set up recurring billing and automate the collection process. We are happy to help at Ecwid, so feel free to reach out to us for further assistance or support. As always, we’re here to help!
Do you want to know more about launching a subscription business?
- How to Sell Subscriptions: A Guide to Growing Recurring Revenue
- How to Get More Customers for Your Subscription Business
- Thinking Inside the Box: 10 Product Ideas for a Subscription Box Business
- Why Your Business Needs a Subscription Management Software
- Subscription Business Model: How to Switch Your Customers to Monthly Payments
- 8 Subscription Business Ideas
- How to Sell Subscription Boxes to Anyone
- Recurring Payments: Selling Monthly Subscriptions