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Strategies For Future-Proofing Your Business With Subscriptions

It’s been fascinating to keep tabs on the subscription industry during the last few months. If you aren’t currently tracking what is happening, now is the time to start. The future of marketing and revenue strategies is constantly evolving, and the question everyone within your organization should evaluate is: Are you prepared for what is coming? 카지노사이트

What does that mean? Here’s a start …

A few months ago, when talking about potentially acquiring Twitter, Elon Musk said that he believed Twitter could double its 2021 revenue ($5.08 billion) by 2028—through subscriptions alone.

Then, shortly thereafter, the German automaking juggernaut BMW launched heated seats as a subscription service. The National Football League followed suit by launching their exclusive new streaming subscription service, NFL+. Lastly, this summer, Disney surpassed long-time subscription leader Netflix in total subscribers, eclipsing 220 million.

As someone who is heavily involved in the subscription space via my role at Chargebee, a subscription management software company, what stands out to me more than anything else is that these world-renowned brands are shifting to subscriptions. 안전한카지노사이트

Twitter is a social media network, BMW is a luxury vehicle company, the NFL is a sports league, and Disney is a large media organization.

None of these iconic household names are necessarily known for or viewed as subscription-based companies like Netflix is, for example. That’s precisely why each of us should be paying attention. I believe the world’s business leaders are showing us a glimpse of what’s to come.

So, whether your organization is looking to create a new subscription product like the NFL, add subscriptions to your existing products like BMW or bundle several of your products or services like Disney, there are three main questions that you need to evaluate:

  1. Do you already have a product or service that you can easily convert into a subscription?
  2. What is your plan to acquire subscribers?
  3. What is your plan to retain those subscribers?

The reason those questions are critical is because you truly need to understand what the value-add of your subscription will need to be in order to acquire and retain your subscribers. You should be aiming to create a community with a great customer experience. Once you have a good grip on that, you’re ready to launch.

So, when people say that subscriptions are the future, just how big are we talking? Well, the global e-commerce subscription market size is expected to reach $904.28 billion in 2026—which is an increase of just over $831 billion from the 2021 market size of $72.91 billion. That means the market size in 2026 is expected to be over 11 times larger than its previous market size five years prior. 카지노사이트 추천

So, as the world shifts to subscriptions, how can you ensure that you are prepared to shift too? You should start by strategically evaluating your entire revenue life cycle. You can easily organize this into what I call the four “R’s”—recurring billing, retention, revenue recognition and receivables.

Recurring Billing

My advice would be to look for one source of truth that combines your billing automation, subscription management, recurring payments and revenue analytics. For maximum efficiency, make sure the solution can act as an intersection point between the specific accounting software, CRM and payment gateway tools you’re already using.

Retention

To capitalize on the enhanced automation stemming from your recurring billing solution, you may also want to incorporate a solid customer retention tool. I suggest asking providers to explain how their solution tracks why your customers are leaving and what types of personalized retention offers it enables to determine if the solution is right for your needs.

Revenue Recognition

Most organizations that I’ve spoken with are handling their internal revenue recognition through outdated, cumbersome processes. Implementing a revenue recognition tool that gets you out of spreadsheets could change the game. Just ensure that it’s ASC 606 compliant and following the IFRS 15’s five-step model.

Receivables

Automating your accounts receivables efforts is often an overlooked aspect of your subscription tech stack. Consider which manual tasks your organization would benefit from automating and look for a solution that addresses those. For example, you might want to automate data entry, how you address payment delays, your collections process or your cash flow forecasting. You should also make sure any solution you’re considering complies with any relevant industry standards.

If your organization isn’t automating and optimizing these via the right tech stack, you could be leaving revenue on the table.

As you search for new solutions to improve your subscription tech stack, I think it really comes down to finding solutions with these criteria: funding, capabilities, reputation, global presence and integrations.

All in all, future-proofing your business with subscriptions is always a twofold process.

You first need to create an innovative internal subscription strategy—just like Twitter, BMW, the NFL and Disney have done.

Then, you need to ensure you also implement the right tech stack to capitalize on that strategy.

Do this, and you should be prepared for whatever the future holds.

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