Subscription business models are very advantageous for the companies and hence they are considered as the Golden Goose. If you are using that method, then you can be assured about receiving a certain amount of revenue every month end and based on this you will be able to predict the profits also.
But there are many drawbacks of selecting this kind of method as well. The best way to use this kind of subscription method is to make sure that the rules and conditions of the subscription are known to the customers. They should be willing to pay the required subscription fee. There are many things that you should be careful about and here a few of them for you.
- When the customer is subscribing for the subscription method, then they should be aware of the process. They should be aware of what exactly will they be able to enjoy with this kind of subscription.
- The customer should be able to understand that they are actually subscribing for this method. Sometimes, customers will be auto subscribed and that can be a problem. When the customer is unaware, then there are chances that they file complaints regarding the same to get back the amount that is being collected.
- You should always make sure that the un-subscription process is simple. They should be able to leave the subscription whenever they wish to. There should not be any technical issue which is stopping them from unsubscribing from the list. They can be really irritating for them and that can lead to a lot of consequences.
- The customers should be given a provision to make the payment on their comfort like it can be monthly, quarterly or half yearly or annually. You can choose a subscription option for them. When people are ready to pay, then allow them to do in their comfort level.
- When the customers have unsubscribed, then you will have to remove them from the payment data list immediately. If you are collecting the amount from the customer even after unsubscribing, then you will have to face a lot of problems. In fact, you may have to end up paying a lot more than what you have collected from them. So, you need to be very careful.
Sometimes, there are customers who subscribe without having complete knowledge about it. So, you need to make sure that the terms and conditions are stated in a clear and specific way. That means, sometimes the customer may think that it is just a one time payment and make the payment, they are not sure that it would be collected every month.
So, make the policy clear for the customers to understand. Keep it really simple and straight. You also need to delete the payment information if they plan to unsubscribe for it. If you are able to make the customers feel secured then you will be able to see that the customers will retain for a longer time with your company.