From Complexity to Clarity: Simplifying Subscription Models with Technology

In the previous article, we have broken down that a subscription business model, regardless of the type of product or service, always consists of a number of elements, certain steps that every business entering this subscription world must go through.

However, often for startups and small businesses, the very process of creating a subscription business model is very laborious and time consuming. If you are or have ever been directly involved in a product's genesis, you are well aware that simplifying core and third-party workflows can have a huge impact on a product's success.

67% of businesspeople consider assisting tools only in they have problems in leading their companies

Simplification can have an effect on the following points of business development:

• Efficiency: Saving time, resources, reducing the workload on staff and allowing them to focus on the product itself, its development and promotion;
• Scalability: When core business processes are well established and do not turn into an impossible mission, business growth, audience expansion, reaching new markets, offering new products or services, etc. is much faster and easier for the business;
• Reduced churn: Simplifying subscription processes can increase customer satisfaction and therefore customer loyalty;
• Competitive advantage: By simplifying the subscription business model creation process, businesses can gain a competitive advantage over competitors that have more complex subscription processes. This can help businesses attract and retain customers.

The value of simplifying business processes is clear, but the process of simplification itself, ironic as it may be, also requires some effort. However, let’s think of it as an investment in a slightly more carefree future for the business owner.

Making a big business decision requires willingness of entire team

So, what can businesses do to simplify their lives?

• Automate billing and payments: Automating billing and payments can simplify the subscription business model creation process by reducing the need for manual intervention. This includes using a payment gateway to process payments and automatically charging customers on a recurring basis;
• Use customer data to inform decisions: By using customer data, businesses can make informed decisions about subscription pricing, features, and marketing strategies. This includes tracking customer behavior and preferences, monitoring subscription metrics, and analyzing data to optimize the subscription model;
• Optimize the subscription model over time: To simplify the subscription business model creation process, businesses should continually analyze and optimize the subscription model over time. This involves monitoring subscription metrics, testing new pricing and features, and making adjustments as needed;
• Leverage existing tools and resources: Businesses can simplify the subscription business model creation process by leveraging existing tools and resources, such as e-commerce platforms, marketing automation software, and payment processing services. These tools can help businesses automate processes, reduce friction for customers, and streamline the subscription process.

Interior kitchen of subscription business model creation

Let's take a closer look at the tools that can be useful for the subscription model business in various aspects:

• Subscription management platform: A subscription management platform, such as Rainex, can help businesses manage billing, payments, subscriptions, and customer data. These platforms can automate subscription billing and provide analytics to help businesses optimize their pricing and retention strategies;
• Customer relationship management (CRM) software: CRM software can help businesses manage customer interactions and track customer data. These tools can help businesses identify customer needs and preferences and personalize their subscription offerings to meet those needs.
• Business intelligence (BI) tools: BI tools can help businesses analyze customer data and identify trends and patterns in customer behavior. These insights can help businesses optimize their subscription pricing and retention strategies;
• E-commerce platforms: E-commerce platforms, such as Shopify or WooCommerce, can help businesses sell and manage their subscriptions online. These platforms can automate subscription billing and provide tools for managing customer data and communications;
• Marketing automation tools: Marketing automation tools, such as HubSpot or Marketo, can help businesses automate their marketing campaigns and personalize their subscription offerings to individual customers. These tools can help businesses increase customer acquisition and retention;
• Payment processing services: Payment processing services, such as Stripe or PayPal, can help businesses accept payments from customers and automate subscription billing. These services can provide secure and reliable payment processing and help businesses reduce payment-related friction for their customers.

Of course, the process of connecting to one or more tools involves some difficulties that businesses need to be aware of.

It entails a few considerations:

• Integration: The technical aspect involves integrating the new tool with existing systems and processes. This may require configuration of APIs (Application Programming Interfaces) or establishing data connections between the new tool and other platforms or databases used by the business. It’s important to ensure compatibility and seamless data flow between systems;
• Data Migration: If the new tool requires migrating data from existing systems, businesses will need to plan and execute a smooth data migration process. This involves mapping and transferring relevant data to the new tool, ensuring data accuracy and integrity throughout the transition;

Tools connection can help scale your business faster and more efficiently

• Customization and Configuration: Depending on the tool, businesses may need to customize or configure its settings to align with their specific subscription business model requirements. This could involve setting up pricing structures, subscription tiers, billing cycles, or other parameters to reflect the desired subscription model;
• User Training and Support: Introducing a new tool may require training for the staff members who will be using it. This ensures they are familiar with the tool's features, functionalities, and best practices. The most ideal option is to have onboarding directly in the tool so that the learning process is as quick and easy as possible. Ongoing technical support may also be necessary to address any issues or questions that arise during the implementation and subsequent usage of the tool;
• Testing and Quality Assurance: Before fully integrating the tool into the business’s subscription model process, thorough testing and quality assurance should be conducted. This helps identify and resolve any technical glitches or compatibility issues, ensuring a smooth transition and optimal performance.