Boosting Subscription Success With a Merchant of Record
Digital subscription services are extremely popular right now, and the numbers prove just how many people are using them. Currently, digital customer subscriptions are valued at $14 trillion, making this industry a highly sought-after business venture for savvy entrepreneurs.
However, as you well know, the more attractive a market is, the higher the competition. With 80% of subscription vendors offering different subscription tiers to their customers, it’s best to focus on developing a bullet-proof subscription management strategy that steadily grows your recurring payments.
To do that, subscription businesses need to identify the best partner for the job, and out of the many available options, the Merchant of Record definitely stands out at the top of the list.
If you are unfamiliar with the model, make sure to read our complete Merchant of Record guide.
In this article, we will be looking at the benefits of using a robust MOR solution in perfecting the subscription business model, more specifically:
4 Subscription Management Best Practices
Are you seeking powerful subscription management strategies? The reality is that the effectiveness of your product or service hinges largely on the subscription management platform you employ.
Therefore, here are five key guidelines to consider when looking for ways to boost recurring payments, as well as when evaluating a subscription management solution for your business.
Ensure streamlined onboarding and self-service
One of the key ingredients of subscription business models is when the ROI is immediately apparent.
The faster your subscribers understand the value your service brings, the higher your customer retention rate will be. To do that, you need to simplify your onboarding process and present your key features as soon as possible.
Also, since you will need to keep a close eye on your customer churn rate, you need to consider friction, or better said, the lack of it. Implement user-friendly sign-up procedures like the self service portal so customers can easily manage their accounts and make changes with as little resistance as possible.
Apply clear and transparent pricing
Setting subscription pricing can become a complicated endeavor. Why? Because, at times, business owners strive too hard to cater to too many different customer preferences.
Given the intricacies of pricing structures, subscription billing complexity might lead to customer attrition. Therefore, it's necessary to maintain simplicity and clarity in your subscription offerings. Provide transparent explanations for each tier's features, renewal terms and remove any concealed charges.
Ensure your subscription pricing is straightforward and easily comprehensible for all customer segments.
Offer flexible subscription options
You need to gain the approval of your customers, and one of the ways to do that is to cater to their payment preferences. As we’ve mentioned before, you don’t need to go on a wild goose chase, but keeping your subscription billing options flexible will definitely help when managing subscriptions.
That being said, here are a few things you might want to consider doing.
Try different pricing models and structures to determine which fits your target audience best. Also, you might want to provide your customers with multiple payment methods and currencies to gain their loyalty.
And let’s not forget about subscription models. Make sure your subscription management system provides several models, ranging from automatic manual to hybrid subscriptions.
Subscription flexibility is an asset you cannot overlook because it gives you the means to constantly perfect your offering, thereby generating greater annual and monthly recurring revenue.
Consider automated billing and dunning management
Many subscription business owners believe that success hinges solely on acquiring and retaining subscribers. However, running a thriving company also means blending innovative growth strategies with effective revenue recovery approaches.
So, consider automating your recurring billing process, as this will help you effectively manage all charges.
Additionally, give some thought to how you are going to recover lost payments. The simplest way is employing dunning management. By using automated retry mechanisms and transparent customer communication regarding failed charges, you can successfully recapture lost revenue.
Why is the MOR the right choice?
In the competitive world of subscriptions, there are two things that can break or make your business: product value and price. Given the latest events that have left quite an impact on customers’ spending habits, the latter prevails.
However, putting the right price tag to your subscription offerings should not be a decision that suits your subscription management capabilities. It should do your product justice.
That is why, instead of collaborating with multiple businesses and their platforms that open the door to technical nightmares and fail to deliver the right features to actually grow your subscription business, joining forces with a Merchant of Record is the most practical route to take.
When joining forces with an MOR solution, you are provided with:
A simplified onboarding process, which ensures a smooth and hassle-free experience, considerably reducing abandonment rates.
Localized payment experiences, meaning that your subscribers have access to their preferred payment methods and local currencies.
Global tax compliance, allowing SaaS founders to focus on their core business and avoid operational headaches.
Dunning management, helping subscription businesses recover lost revenue effectively.
Subscription flexibility, ensuring businesses can cater to multiple customer preferences and employ various revenue growth strategies.
The Merchant of Record solution is, undeniably the right partner for scaling a subscription business across the world. But, as always, the success of this kind of partnership depends greatly on your MOR choice. Here is a guide on selecting the ideal Merchant of Record for your SaaS or software business.
The Merchant of Record that helps you grow
PayPro Global takes away the headache of selling your products worldwide. From local payment methods to simplified subscription handling and tax management, we give you the eCommerce tools you need to scale your business smoothly into the global market.
How Is PayPro Global Different?
Part of the payment industry for over 15 years, PayPro Global’s unique Merchant of Record model offers extensive subscription and billing capabilities, sure to skyrocket your business.
As a PCI-DSS Level One Certified Partner, with access to over 140 currencies and more than 70 preferred payment methods, secure transaction processing, multi-language 24/7 support designed to solve customer inquiries quickly, complete management of sales taxes, and a robust, holistic fraud prevention and detection approach, our MOR takes away the frustrations of selling internationally and gives you the freedom to focus on perfecting your product.
Moreover, by offering access to an exhaustive range of subscription pricing models, including automatic, manual, or hybrid subscriptions, as well as options for upgrades, downgrades, pay-per-use, and on-demand charges, PayPro Global's versatile billing engine empowers you to increase revenue and optimize essential business processes.
From one-time charges to trials, freemiums, and demos, we help you test various sales strategies, effectively engage with different customer profiles, and validate the best-performing model for your business.
Find out more about our complete payment infrastructure and how it can strategically scale your business in global markets.
Mastering subscription management is mandatory to thrive in the fiercely competitive subscription industry. Seeking various individual solutions might initially seem like the logical path, but it quickly becomes apparent that this route can burden you with operational complexities, particularly when considering global expansion.
Rather than juggling various subscription management tools, why not opt for a single comprehensive platform that caters to all your growth requirements? Why not choose a solution that alleviates the challenges of growth, freeing you to concentrate on critical areas like product development that demand your attention?
Why not embrace the Merchant of Record, the ultimate revenue growth solution?
Frequently Asked Questions
What is the value of the digital subscription industry?
Over the past years, the value of the digital subscription industry has spiked to an impressive $14 trillion, becoming highly appealing for software and SaaS businesses.
What are effective subscription management strategies?
There are several subscription management strategies that can be effectively used to increase business profitability. Among them, we can mention streamlined onboarding, clear and transparent pricing, flexible subscription options, and automated billing and dunning management for recovering failed payments.
Why is a Merchant of Record (MOR) advantageous for subscription businesses?
The Merchant of Record business model brings forward several advantages, such as simplified onboarding, localized payments, multi-currency management, global tax compliance, dunning management, and flexible subscription options, ultimately fast-tracking global scaling.
What makes PayPro Global's MOR model unique?
Part of the payments industry for over 15 years, PayPro Global's MOR unique business model stands out through its extensive billing capabilities, multi-currency and payment method support, as well as fast and secure transactions, and a versatile billing engine.
Hanna Barabakh is a Brand Ambassador at PayPro Global | Discover a collection of articles on B2B marketing, subscriptions and e-commerce strategies
Adina Cretu is a Content Marketing Manager at PayPro Global | Discover a collection of articles on B2B marketing, subscriptions and e-commerce strategies
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