From inadequate payment processing to a lack of analytic visibility, around 80% of companies are still reliant on legacy systems hindering their growth and transformation initiatives. In order to scale and meet the demands of today's subscribers, leaders must reimagine their approach to a seamless subscriber experience. And the time is now.

Working with the right tools not only helps you keep your hard-earned consumers but also elevates your product to new heights.

In partnership with Change Makers, we sat down with 21 product and growth leaders from leading brands like Amazon, Microsoft, Comcast, Sky, The Telegraph, and more, to discuss how technology can create a frictionless experience that constantly retains and satisfies subscribers.

Check out the report for more insights or continue reading to get the highlights. 

Evolving expectations: Customers are more discerning 

Subscription businesses flourished during the pandemic. Sanitary restrictions opened the door to online shopping and the convenience of repeated purchases. However, as consumers have embraced the subscription model, they have also become more selective.

Today’s subscribers seek high-quality offerings paired with a seamless, personalized experience. Add in a hugely competitive market–expected to be worth $1.5 trillion in 2025–and differentiating gets more complex. 

For many businesses in the sector, this is a period of transition. Established companies are aware of the need to update outdated systems and devise strategies that will better align their services with an ever-evolving customer base.

This has led to a change of mindset. Moving beyond building the perfect product, the focus has shifted to customer-centricity—personalized and flexible services geared to the expectations, circumstances and price sensitivities of niche groups. 

However, legacy systems limit the ability to innovate, making it difficult for companies to address industry-wide problems like rising churn rates.

Strategic priorities: Aligning with subscriber preferences

Growth is top of mind for leaders with subscription business. According to The payment experience is critical to subscriber growth and retention, a commissioned study conducted by Forrester Consulting on behalf of Recurly, brands are also prioritizing technology as improved platforms (75%) that can drive more efficient operations (75%) and improve their ability to generate insights (67%).

Additionally, there is an opportunity to deploy technologies, such as AI and machine learning, to understand customer preferences and behaviors. This knowledge can be used on target messaging and services, creating a more engaging experience.

One thing is certain: Customer needs and demands will continue to evolve. With that in mind, the goal should be to create a resilient and adaptable subscription ecosystem that will continue to deliver enhanced value to new and existing customers over time.

The biggest challenge, however, is the delivery of services that are resistant to the threat of subscriber fatigue and the consequent damaging churn rates.

Navigating obstacles: Regulation, discernment, and old technologies

Subscription companies face multiple challenges: commercial pressures, increased competition. At the same time, the regulatory environment around the use of data, AI and analytics is already complex and likely to become more so.

Overcoming these obstacles will require a combination of technology upgrades, an understanding of consumers, and agile strategic planning.

Many successful subscription businesses have been built using legacy systems. But legacy systems are often not compatible with the essential AI, analytics, and data tools required to understand subscribers. On the other hand, subscription businesses must also comply with a range of regulations on payment processing.

Again, this emphasizes the requirement for a technology platform that is flexible, not just in personalization, analytics and payment tools, but also in compliance with regulations across multiple jurisdictions.

Upgrading or replacing legacy systems can be complex and costly—and there are difficult but important choices to be made. For instance, is it better to buy or build? Businesses must make decisions that enable them to create a future-proofed technology ecosystem.

Wrap up

The subscription market was boosted by the pandemic and, four years on, it continues to grow. Consumers have become more discerning and companies must take steps to differentiate themselves.

The tools are available to help businesses personalize their services and enhance customer service, but progress is being impaired by a reliance on legacy systems. Thus, modernization is key.

Subscription businesses have several key objectives but many challenges ahead. Overcoming these barriers will require not only investment in technology but a commitment to innovation, consumer understanding and long-term strategic thinking.