The subscriber-based business model has been around for hundreds of years, starting with newspapers and publications back in the 15th Century. And although today’s subscription-based enterprises cut across a wide spectrum of industries, products and services, the basic rules still apply—keep subscriber acquisition costs down, mitigate subscriber attrition and keep your subscription products and services attractive and competitive.
Lured by convenience, savings and access to new or unique products, consumers have embraced the subscription services marketplace as corporations continue to create and refine their recurring revenue channels. Industry growth in subscriber services has skyrocketed, attracting the attention of Silicon Valley start ups to traditional brick-and-mortar retail chains—some of which are launching their own subscription businesses.
Increasing competition from new entrants will require subscription services companies to differentiate their brands by providing a personalized experience and superior customer service. Despite the appeal of the products and services being offered, the majority of subscription services companies cite high churn rates as a top business challenge. A McKinsey & Company survey found that consumers were willing to subscribe to a service only when they perceive clear benefits like lower costs or increased personalization—but to continue subscribing, they expected personalized subscriptions to become more tailored over time.
Software as Service (SaaS), streaming, apps and a broader grouping of technology and e-commerce subscription business models can bring a steady stream of recurring revenues to corporations. However, acquisition costs, intense competition, subscriber churn and service issues can wreak havoc on even the best subscription-based models. Therefore, subscription-based businesses have to constantly differentiate through branding and a superior customer experience.
As the subscription services industry continues its rapid ascent, more companies are likely to feel the growing pains that can make everyday operations feel like obstacles to overcome. This is when it’s even more critical to focus on customer retention as much as customer acquisition.
Top customer service challenges that subscription services companies are facing include:
CustomerServ’s call center vendors are experts in subscriber services across multiple industry verticals including meal kits, fashion, publications, delivery services, men’s grooming, streaming services, satellite radio, cable, software providers, pharmaceuticals and retail. Through our expert vetting and selection process, CustomerServ has hand-picked the leading U.S.-based, nearshore and offshore call center vendors that understand the subscriber lifecycle with best-in-class call center support designed to:
CustomerServ’s subscription services vendors provide high-touch Omni-Channel call center services in the following areas: