Subscription EconomyBlog

Factors to take into account when planning a subscription business

When transitioning to a subscription or recurring billing business, several factors must be taken into account, as the subscription economy differs from traditional product business.

A woman uses a mobile phone to communicate while sitting in a coffee house.

Here are some key considerations that may impact the success of your business:

Market Research

Conduct market research to identify the demand for services, the size of your target audience, and who your competitors are. This will help you understand the market and make informed decisions regarding pricing, features, and marketing.

Pricing Strategy

Decide how much you will charge for your subscription service. This depends on various factors, such as the value you offer to customers, the level of competition in the market, and production costs. Consider offering different subscription levels to cater to the diverse needs and budgets of your customers. 

Read about pricing strategies

Customer Acquisition Strategy

To attract subscribers, develop a customer acquisition strategy that includes marketing and advertising activities. Consider leveraging social media, search engine optimization (SEO), content marketing and paid advertising to promote your subscription service.

Payment Processing

What system will be used to process subscription payments? Ensure that the platform is secure, reliable and user-friendly for your customers.

Customer Support

Providing excellent customer support is crucial for retaining subscribers. Make sure you have a customer support team to address questions and issues from customers.

Billing and Renewal

Determine how often you will bill your subscribers and when subscription renewals will occur. You may want to offer discounts or incentives to customers who decide to renew their subscriptions.

Service Content

Your subscription service should meet the needs of your target audience. Ensure that your service is reliable, fast and user-friendly.

Security and Privacy

Since subscribers provide personal information, it's crucial to have strong security and privacy practices in place. This includes protecting customer data, adhering to privacy regulations, and being transparent about the use of customer information.

By considering these factors, you are already on the path to success in your recurring billing business. We would be happy to assist in the development of your business. So, let's schedule a meeting and let's discuss further!