We are back and feeling better than ever, kicking off what we’re hearing is "the year of subscription growth and iteration." We also have 10 must-have features for subscription billing platforms in 2020. Plus, how to price for SaaS success in the new year.
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2020: the year of subscription growth and iteration
We’ve all seen the headlines this year from Nike and Bloomingdales to Coca-Cola, Mercato and GNC. Organizations across all industries—from big names to smaller heroes—are increasingly turning to subscription to set their businesses up for growth.
Research from Zuora found that 71% of adults across 12 countries have subscription services, and 74% believe that in the future, people will subscribe to even more services and own less physical goods.
And Gold’s article highlights four predictions for this booming business model.
- The “active user” will be a company’s crown jewel, with customer acquisition at top of mind in 2020.
- Companies will begin to diversify their offerings, launching and experimenting with varying promotions and services to increase subscribers, build loyalty, and drive sales.
- Industry consolidation is inevitable, as companies begin to diversify and fundamentally learn from consumer data.
- Subscription services will grow in any economy. Subscription businesses that leverage data to experiment and enhance offerings—whether traditional retailers, ecommerce giants, technology providers, or manufacturers—will gain a greater understanding of their customers and be better positioned to mitigate churn and scale.
And it is these businesses that will ultimately win out in the subscription service space. But what do you think of these 2020 predictions? Send me a note at email@example.com with your own predictions and we’ll share those, too.
10 years, 10 pricing must-haves
Another decade has passed, and the subscription model has further marked its presence.
So, Zoho dropped a list of 10 crucialities for any subscription billing platform moving forward in 2020. Here’s a peek at what items the Zoho team is saying are a must:
Pause and resume subscriptions, with which your subscription management software allows users to pause and resume their subscriptions on demand.
Inventory Integration, to ensure that handling both your subscriptions and inventory simultaneously isn’t a hassle—because if you deal with tangible products, manually transferring data between your separate inventory and subscription management platforms can be unnecessarily tedious.
Pre-filled checkout pages, to prioritize a seamless checkout experience, it’s a good idea to pre-fill your checkout page. We’re all about this one, and have our own piece on pricing discrepancy and why your customers are leaving before checkout.
We also have a cohesive list of what we think are the top 23 subscription billing platforms out there. Plus, the full Zoho resource so you can check out all ten must-haves for your own platform. Be sure to let us know what you think.
What's the power of your pricing?
Since we’re all about fast growth today, I’ll mention that global revenue for SaaS products is expected to hit $117 billion by 2022, making it one of the fastest-growing verticals.
2Checkout, online payment processing services, reminds us that although these numbers are pretty astounding, many companies will still struggle.
Company growth is driven by monetization and retention—charging customers and keeping them so they can keep being charged.
If your company provides a valuable service, that value can be monetized. It just needs to be done the right way. And we know one of the best ways to increase revenue per user is to play with the pricing.
So 2Checkout has your blog post, and subsequent ebook, on how to nail it—with tools like pricing your service for your customer personas, using data to define your value metric, and how to choose a pricing model.
You could have the perfect product, but if it’s not priced for your target market, it can quickly be a wash. 2Checkout’s new resource, the eBook Pricing for Success in SaaS: An Essential Guide, includes extensive, actionable pricing tips, and examples.
We make an appearance in there, too, with insight dug up by our ProfitWell pricing pros.
Pricing remains one of the most important growth levers in business today, yet we still fail to spend the time and effort required to leverage monetization for growth.
So how should you price to have the biggest impact on your bottom line?
And that’s a wrap for your January 6 subscription news. Recruit your teammates into the subscription know at recurnow.com.
If you have news to share, hit me up at firstname.lastname@example.org and we'll collaborate.