How Subscription Management Helps CFOs Overcome Adverse Economic Circumstances
As businesses and consumers face unprecedented financial challenges in these presently uncertain macroeconomic times, businesses that utilize a self-service selling model for their subscription-based offerings are predicted to succeed.
What’s the first word that comes to mind when you think about the state of the US economy?
Recession? Inflation? Good? Unstable? Poor? Troubled? Unemployment? Uncertainty? Improving?
The subscription economy scales as consumers cut back
No matter the word that comes to your mind, nor the severity of the present times, businesses and direct consumers are cutting back determined unnecessary spending. As a result, CFOs might experience decreased revenue numbers, limited overall company growth, or in the worst case, needing to shut down their business entirely.
“66% of consumers expect that they will have to make further cutbacks to their regular spending due to inflation…” -National Research Group, October 2022.
Subscription businesses will thrive in a looming recession
Subscription businesses hum with predictable growth, but that only happens when customers continue to renew. Enter Subscription Management! A Salesforce framework that uses automation and shared data to optimize how you deliver subscriptions. In a recurring revenue business, growth depends on retaining existing customers who pay on time and renew regularly. That’s the goal of subscription management - keep customers engaged so the revenue keeps coming back.
“51% of consumers say that subscriptions now make up a “significant” portion of their regular monthly spending” -National Research Group, October 2022.
With the reality of a continued recession, it’s now more important than ever for CFOs to create a positive and efficient consumer experience. From purchase to payment to utilization of the product, the holistic customer experience drives consistent repeat business, upsell opportunities, and also keeps predictable cash flow… you know, flowing.
Here are 5 ways Subscription Management will help CFOs drive omnichannel growth this year
- Improved Visibility: Subscription Management provides CFOs with detailed insights into the revenue streams generated by subscription-based products and services, including subscriber acquisition and retention rates, revenue and churn, and upselling and cross-selling opportunities. This helps CFOs to better understand their business and make more informed decisions about how to grow and scale their operations.
- Optimized Pricing & Billing: Subscription Management allows CFOs to set up and manage complex pricing and billing models, including usage-based billing and tiered pricing. This can help CFOs to optimize their pricing and billing strategies in order to maximize revenue and minimize churn.
- Better Forecasting: Subscription Management provides CFOs with the data they need to forecast future revenue more accurately. This can help CFOs to plan for future growth and budget more effectively.
- Increased Efficiency: Subscription Management automates many of the tasks associated with recurring payments and billing, such as account creation, payment processing, and invoicing. This can save time and reduce errors, allowing CFOs to focus on more strategic tasks.
- Omnichannel Integration: Subscription Management can be integrated with a variety of different systems, including e-commerce platforms, CRM systems, and payment gateways. This can help CFOs to gain a holistic view of their customer data across different channels and make more informed decisions about how to drive growth across all channels.
The best companies are those that decide to innovate in times of uncertainty
Investing in Subscription Management could be a huge turning point for your business. It is imperative to innovate and emerge from this period of uncertainty in a stronger position, and a subscription business model, with the help of NeuraFlash, will provide you with the strong foundation to do just that!
It’s important to remember though that subscriptions aren’t operational add-ons. You have to change your mindset, and your products, processes, and technology, to become ready for recurring revenue! Here at NeuraFlash, we are one of the only partners in the ecosystem that is Salesforce CPQ Billing-certified and fully enabled on Subscription Management. With our expertise and our Change Management team here to support you, we can help build your company revenue that keeps coming with subscriptions, covering your revenue leakage while getting you an increased renewal rate.