The subscription business has proven to be a boon in these self-quarantining times. With social distancing becoming the newest norm, businesses have realized the importance of “digital-first” and have been foraying into the digital space to sustain.
While many businesses have sustained the need of the hour, the prolonged pandemic has become a concern. Because the transition from the sustaining state to the growth phase has not been very swift for many and many cite the primary reason to be the lack of understanding of the subscription revenue model and how they work.
As you read along, you will find Five expert tips from subscription business veterans to grow your subscription revenue without spending much on marketing and promotion.
1. Upselling Ups the Game, Really!
Upselling is no new to subscription SaaS. In fact, it’s the backbone of revenue growth. Upselling is a subtle selling technique to upgrade your subscriber’s existing plan. Aimed at increasing average subscriber revenue, SaaS giants extensively upsell to convert standard subscribers into premium ones offering additional features/benefits in exchange.
One can understand that here the key is how you package your offerings. Having multiple plans or packages with careful distribution of services, benefits, and features can leave you space and scope to upsell. Boiling down everything, it’s time to huddle your team and evaluate your pricing strategy.
| Additional tip: Don’t hesitate to sneak into your competitor’s pricing plans as well. ?
2. Add Ons are Money Spinners.
“If they don’t want to buy the whole room, sell them the roof. They will come back to you to build the room again.”
Add-ons are super powerful ways to boost your subscription revenue. Primarily meant for standard and mid-level plan subscribers, add-ons are an effective way to generate recurring revenue while segmenting the market for you to thrive on.
Add-ons coupled with upselling paves the way for monthly recurring revenue, popularly known as expansion monthly recurring revenue (MRR), which indicates the revenue generated from an existing customer when it upgrades the subscription. Metrics like MRR helps you plan and strategize better.
3. Onboarding Services: Let the Ball be in your Court.
Onboarding services are another revenue stream you would like to unlock if you operate in the PaaS, SaaS, or IaaS space. After your customer signs up with your product or service, the only thing it has in mind is how to keep the system up and running. There you pitch your onboarding services that promise faster time to market, gaining you handsome money in exchange.
4. Offer a 2.0 version of your Product
To achieve this, you have to be vigilant about the industry trends and market shifts. Tweaking your subscription product to suit new markets and industry verticals and packaging it as an upgraded version of your existing product opens up a new revenue stream. With proper marketing and promotion, you lure your current customers to upgrade.
5. Coupons and Vouchers
From targeted local advertising to word-of-mouth recommendations, coupons, and vouchers are proven ways to build brand awareness around your product. And the best part is any form of a subscription business can adopt this mode of monetization. A carefully planned coupon or voucher can help you upsell and cross-sell products & services. Also, this form of monetization opens up revenue streams without much advertising cost.
And Some More…
Customer Support in The Pandemic
By offering tiered pricing, you can fix both price and features across multiple plans and club customer support with higher plans. Having a diverse support plan, you may provide SLA-based support even to non-premium subscribers as add-ons.
A diverse support plan is essential in the pandemic era as businesses would like to reduce risk and enhance security measures to avoid unforeseen circumstances.
Every subscription business strives to increase LTV (life-time value). LTV is defined as the total amount you’re likely to receive from a customer over the life of their account with your Product or service. For higher LTV, your product needs to be flawless and support top-notch. To offer integration support, migration assistance, implementation, etc., you may provide professional services to your clients, a robust revenue stream that also has strong potential to be a recurring revenue source.
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