The popularity of subscriptions has been growing for years, as many people are spending more time at home and are therefore increasingly turning to subscription services. Subscriptions are available as audiobook apps, streaming services, online platforms and much more, and it is not uncommon for one person to have several subscriptions.
Subscriptions for a product or service have been an important revenue generator in the B2B segment for many years. Especially in areas where software and digital services are offered.
To keep track of your company's subscription business, you should know this about subscription management.
What does subscription management mean?
Subscription management is a term used in the subscription economy. It refers to the management of subscription services or subscription models in an organization. These tasks are usually aimed at ensuring that subscribers are properly supported, payments are processed correctly and subscription services run smoothly.
What tasks are covered by subscription management?
The most important tasks in subscription management include
- Customer acquisition and registration: acquiring new customers for subscription services and recording their relevant information, and adding them to the database
- Contract management: creation and management of subscription contracts that define the conditions, prices and terms of the subscription
- Billing and payment processing: subscriber billing, payment collection and cash flow processing; may also include payment processor integration and arrears tracking
- Customer care: providing support and customer care to subscribers, responding to queries, resolving issues and reinforcing a positive customer relationship, communicating regularly about changes, updates or offers to subscribers
- Subscription renewal and termination: Inform customers about the option to renew or cancel their subscription
- Reporting and analysis: preparation of reports and analyses on the performance of subscription services, customer satisfaction and revenue development to support business decisions
- Subscription changes and upgrades: managing changes to existing subscriptions, including upgrades to higher value plans or downgrades to lower value plans
- Data protection and compliance: compliance with data protection regulations and legal requirements in connection with the management of customer information and payments
The exact tasks and processes involved in subscription management can vary depending on the type of subscription service and the industry. However, efficient subscription management is crucial to keeping your customers happy, increasing revenue and ensuring the long-term profitability of your business.
Subscription management processes may vary
Subscription management processes can vary for a variety of reasons, depending on the type of business, the industry, the company's objectives and the specific requirements of the subscription services.
We have listed 5 reasons why subscription management processes can vary:
- Type of subscription service: Different types of subscription services have different requirements. For example, subscriptions for digital content such as streaming services, subscriptions for physical products or services, software subscriptions or membership subscriptions may require very different processes.
- The business sector: The sector in which a company operates can have a significant impact on subscription management processes. For example, subscription services in the healthcare, entertainment or software industries each have specific requirements and regulations.
- Diversity of customer needs: Customer needs and expectations can greatly influence subscription management processes. Companies can offer different models and services to meet the needs of different customer groups.
- Flexible pricing models: The way in which subscription services are priced can influence processes. This can include, for example, the use of different price levels, discounts, promotions and billing cycles.
- Technology and automation: Companies can use different technologies and software solutions to automate and optimize their subscription management processes. The choice of technology can have an impact on the efficiency and scalability of the processes.
Overall, subscription management processes can therefore vary greatly as they are tailored to a company's specific requirements and objectives. However, effective subscription management should always aim to ensure customer satisfaction, increase profitability and optimize operational processes. To ensure this, you should use a tool such as our cloud solution.
Subscription management with our cloud solution
Companies that are just starting out with the subscription business model should rely on a good tool, such as our cloud solution, to manage their contracts simply and clearly. This means that errors can be avoided right from the start and all processes can be set up in a structured manner.
Our nexnet platform is an all-in-one solution for your billing processes, making billing and subscription billing more efficient overall.
The expertise in our solution is based on over 20 years of market experience in the field of subscription billing and accounts receivable management. Our cloud solution also complies with the strict requirements of the GDPR. Your data is operated via our own data centers in Germany and is subject to the highest security standards.
With our flexible and professional solution, entrepreneurs can save time and money when billing subscriptions.
Get in touch now and find out more about our cloud solution.
