Whether you are inside the subscription business market or out of it, you would hear many things about the subscription business model however, not all of them are correct. One of the reasons that people talk too much about the subscription business model is that many businesses are turning towards the subscription business market.
Now that the number of people is increasing in the market so you will hear many things. But not all of that you hear is true. In this article, you can read a few of the myths about subscription businesses that you should not believe.
Subscription Business Can Be Managed Without Subscription Management Software
There are many subscription startups that use some payment gateway and its simple feature to manage subscriptions. They think they can manage their subscriptions without specialized subscription management software. You must know that it is completely a myth.
The subscription management system is not just for the sake of managing subscriptions rather there are many other functions that the software can handle and manage. These software are specialized for subscription boiling management, accurate invoicing, payment processing, and customer data analytics. These billing software are also flexible to integrate third-party applications so as to provide you with not just software but a business solution.
Every SaaS Subscription Business Needs to Offer Freemium
Another myth in the subscription business market is that SaaS businesses need to offer freemium always. However, experts suggest that not all SaaS products need to be launched with the freemium and free trial. Because freemium gives the impression to the customers that what they can get for free, they do not need to pay for it in the future.
In short, it affects the overall worth of your SaaS product. There are involved certain psychological factors of the customers regarding freemium and free trials that can affect your subscription business.
Customer Acquisition Is More Important Than Retention
All businesses pay attention to catering to more and more customers. However, customer acquisition should not be the focus of your subscription business rather you need to pay attention to customer retention. Why? Because customer retention is more affordable for subscription businesses than customer acquisition.
Even experts say that the money that you spend on retaining customers is far less than what you spend on acquiring more customers. So, if there are some dormant customers, you can devise some strategy to bring them back to life rather than working on the policy to acquire more customers.
It Is Not Good To Change Price for Subscription Plans
You will find many people telling you that you should not change the price of your SaaS product. You should know this price improvisation is the part of pricing strategy. Specifically, SaaS products need to improvise their prices. You cannot keep offering subscriptions for your SaaS product at the same price. Even if you have more than one subscription plan, you will need to improvise the price for these subscription plans.
Rather than paying attention to such myths, it is better to bring your marketing and sales teams to the same table. Ask them to keep improvising the price for your SaaS product so that you can earn profitable revenue.
Subscriptions Are Not Feasible for Physical Goods
There was a time when subscriptions were considered to be feasible only for SaaS products and services. today, many industries are opting for this business model. How did it happen? The business model that was once considered to be only feasible for SaaS companies, today, many new businesses are trying it. It happened because many industries that manufacture physical products have identified the recurring need for their products. When there is a recurrent need, there is room for subscriptions.
Avoid these myths and adopt reliable subscription management software. If you are looking for the best recurring payment system, then you can onboard Subscritpionflow.com. This platform is specialized in subscription management, recurring payment processing, and analytics and reporting. Onboard SubscriptionFlow, you would not look for another SaaS sales tax software.