Although an exciting landscape, it is not entirely based on a rock-solid foundation. Churn is real, and whether it is voluntary or involuntary — customers drifting away because of perceived declining value or expired credit cards halting recurring payments — successful companies must develop strategies to retain their customers and attract new ones.
Despite the hurdles, the benefits for businesses adopting a subscription program are many, and increased engagement with customers leads the charge. Anthony Hauck, vice president and merchant integration officer, says subscription services can establish predictable revenue for merchants, and there are strategies to employ to keep revenue streams flowing, including automatic refreshment of payment cards.
Customer engagement drives two other interrelated benefits: increased customer loyalty and richer customer data. Loyalty is baked into the subscription model because it’s based on consistent customer engagement, and the more you engage, the more you’ll learn about your customer’s habits and behaviors. That information can become a key driver of growth.
Are you ready to ride this new wave? Would you like to understand what has shifted the consumer mindset from ownership to access? How can you curate a customer experience that is dynamic and sustainable?
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