New Year's Resolution For The Success Of Subscription Businesses In 2022

What was the annual recurring revenue (ARR) in 2021? Would it be retained? Will there be any ways to diversify the revenue stream in 2022? That’s what many subscription businesses are up to these days. We—the SubscriptionFlow experts are here to have a cursory glance at the performance of the subscription businesses this year and discuss some New Year’s resolutions that will help you make revenue-optimizing decisions.

Improve Customer Relationship through Communities

No one can deny the importance of satisfying recurring customers. A bad customer experience, just for once, cannot only harm your customer relationship but also become the cause of involuntary churn making you lose the revenue that you could earn for months from that single customer. So, for 2022, you can use your subscription management tool to build communities. Community building can help you have loyal customers. For instance, Studio Bloom offers video streaming services. They have built a community of mothers on Facebook whom they offer informative videos on motherhood. This community building has helped them in branding and expanding the customer base as well.

Realising the importance of community building, HubSpot has started its HubSpot Community Program. To build this community, they have taken into account all the conversations around HubSpot so that the users can find the answers to their questions then and there. So, now that the New year is about to start, it is the ripe time to move from customer acquisition and retention to community building.

And to build the community, you need to have a different perspective. Previously, you used to look for targeted customers. Now, you will look for the margin of crafting a whole community around your SaaS subscription product or services.

Also Read: Build, Manage, And Grow Your Member Community With Membership Management Software Like SubscritptionFlow

Decrease the Customer Acquisition Cost

To date, you would have found people talking about customer retention and the strategies to retain the existing customer base. In 2022, the focus should be diverted to decreasing the cost of acquiring customers. Why? Because it is true that customer retention is preferable in comparison to customer acquisition, but you cannot neglect the onboarding of the new customers. It is recommended that you should reduce the customer acquisition cost so that you can retain the existing ones and get free from the pressure that customer retention is the last resort for customer acquisition is a costly way out.

In order to reduce the acquisition cost of the recurring customers, you will need to mobilize your sales and marketing teams. You will have to market your SaaS product to the market where the chances of acquiring customers are comparatively high. Next, you will have to improve your sales funnel for which the focus on content marketing is crucial. From onboarding to checkout, you will have to make the process frictionless so that you can acquire customers at a minimal cost.

Also Read: Subscription Economy Growth And Trends This Year & Expectations For 2022

Improvise the Price

When it comes to the pricing of SaaS products, improvisation is very important. It is the beginning of a New Year, it is the right time to decide:

If freemium is needed to be offered to the customers or not
What should be the cost for different subscription plans
If the pricing strategy in 2021 helped in achieving the revenue targets
The pricing for the add-ons
If you need to offer a customizable subscription plan

Today, many businesses have successfully onboarded new customers by offering customizable subscription plans. When the subscription plan is customized, the customer is given the liberty to devise his own subscription plan and he is charged accordingly. However, customized subscription plans lessen the predictability of the revenue that you earn. Now that the year is ending, you can see if the customized subscription plans have benefitted your business and strategize for the coming year accordingly.

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Prioritise Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is the worth of a customer throughout the time when he stays on board. It is very important metic in the subscription business market. It is time to evaluate the CLV of the customer base and plan for the future. You must target that no matter customer stays for a long or a short time with you, the value that he adds to your business should be satisfactory. And what defines the value that he adds to your business? The purchases of a customer as well as the add-ons that he gets during his lifetime are the crucial factors that tell the CLV of a customer.

CLV is very important for businesses that are based on customer-centricity. And the importance of worth that the customer provides to a business is undeniable for subscription businesses.

Devise A Performance Management System

These days when a year is about to end SMBs are all geared up to welcome the New Year, the performances of the businesses as a whole are also analysed. Companies revisit the targets and see if they are achieved or not. The performance of the business market and competitors are also audited. There are many automated tools for this specific purpose.

SubscriptionFlow also offers the feature of reporting and analytics. With this feature, you can monitor the KPIs performance that shows the performance of the business throughout the year. For instance, you can observe the Annual Recurring Revenue (ARR) and to track the discrepancies, you can also revisit Monthly Recurring Revenue (MRR) as well. Pinpoint the revenue leaks with the help of this feature of reporting and analytics. However, if you want things to be more sophisticatedly done, you can opt for building the best tech stack with subscription management software integrations.

Also Read: How To Prepare Your SaaS Business To Go Global

Prepare for the Unpredictable Circumstances

Last but not the least, preparing for the coming year in the light of the circumstances that the pandemic has caused should also be part of the resolution. At the beginning of 2021, subscription-based business owners were excited that there was a huge bulge of people who entered the market. There were many opportunities for varying businesses. However, today, there are vaccines and the chances of going back to normality and something new are equal? Because though vaccines have been introduced, the variants of coronavirus are even more lethal. Thereby, unpredictability and the ability to fight it back ought to be the New year’s resolution.

If you are looking for a SaaS subscription management software so that you can perform better in the coming year, then add SubsriptionFlow to your list and make it part of your tech stack. Call SubscriptionFlow experts to adopt this platform that is flexible enough to allow you to integrate it with other applications and software so that you can outperform even in 2022.