Humanising Subscription Businesses
Subscriptions have been taking over the world. You probably pay a monthly fee to your favourite streaming service as well so you can watch interesting content every day. The real value in subscriptions is however not the recurring revenue, but the ongoing relationship between a business and its customers. That long-term customer relationship is what sustains success.
keylight emphasises the importance of not only acquiring customers but keeping them. Keeping your paying customers on board can be five times cheaper than finding new ones but is often overlooked in businesses basing all their decisions on maximising revenue.
Making a relationship last is the hard part in this world not only between humans but between a business and its customers, too. In the long term it’s much more beneficial to develop the product around those who already value what they are paying for and would purchase more in the future.
Running a subscription business makes one want to have a crystal ball. To maximise the customer lifetime value you need to have a look into the future and make predictions about what customers will want by the time their initial contract term ends. Taking the right action to engage at the right times requires communication and data to see which changes really make the difference in the end.
Finding an approach that is human and personal whilst also respecting the customer’s privacy is a difficult but worthwhile process and one that many businesses can’t seem to get right. Breaking through the traditional finance-driven thinking to a long-term relationship is the key.