Even amidst a global pandemic that shook the world in 2020 (and continues to), companies that utilize subscription-based selling are having more success than ever.
Read on to learn three things about subscription selling that could help your organization become more successful in 2021.
1. The Size of Your Company Could Indicate Success
It may come as no surprise that the bigger the business, the bigger the opportunity to make money. This particularly reigns true for subscription-based companies. Companies that serve several different customer bases like consumers, small, and large organizations instead of smaller, niche customer bases have recently had the most success.
These larger subscription-based companies’ overall growth did not decrease in 2020, nor did it even slow down. In fact, these companies had record breaking account and sales growth.
Smaller subscription-bases sales companies (and small businesses in general) were most impacted in 2020. But all things considered, smaller sized subscription businesses still experienced overall growth by strengthening their customer relationships.
2. Discounts Can Help More Than You Think
One of the reasons small subscription businesses managed to stay afloat in 2020 was by offering discounts. This is a practice that any size subscription business could implement, but for small businesses it helped develop customer loyalties and increase customer retention.
During trying times, discounts can retain customers. Consumers love purchasing things on sale, and discounts serve as a tactic that encourages existing customers to purchase additional items, and it also attracts new customers.
In 2020, discounts were ultimately a way for subscription businesses to reduce customer churn and stay afloat into 2021.
3. Make Your Renewals Evergreen
Evergreen renewals are subscriptions that technically have no end. By changing your renewal cadence to an evergreen approach, you will retain customers easier. With monthly, bi-annual, annual renewals - and every cadence in between – you are subconsciously giving your customer an out to stop using your product or service.
Implementing evergreen renewals doesn’t mean you are deceiving customers into automatically renewing each year. Instead, this gives you the opportunity to reach out to customers once a year and reflect on how they have been using your product or service. You can make suggestions on what they can improve on moving forward and continue to demonstrate your product or service’s value to them.
How Neocol Can Help
If you are interested in learning how we can help your business apply subscriptions to your sales model, reach out to us today!