Accelerate subscription growth & revenue in 2023
Welcome back to Subscriptions Monthly in Europe! For the February issue, we’ll recap our latest event, How to accelerate subscriber growth & revenue in 2023, and the CFO considerations when migrating to a subscription model. Additionally, we’ll check on news from Schibsted and Movs’ subscriptions, and Amazon’s new cashier-less stores in London.
How to accelerate subscriber growth & revenue in 2023
This year is off to an excellent start for subscriptions, especially with the announcement of our new partnership with Recuro–a leading subscription business consultancy that will provide our customers with the most innovative technology and consulting efforts.
To celebrate this alliance, we hosted the virtual event How to accelerate subscriber growth & revenue in 2023.
In this webinar, Oscar Wall, Recurly EMEA General Manager, and Jonas Åström, Recuro Founder and CEO highlighted our State of Subscriptions report, revealing the upcoming trends and proven strategies for subscription growth.
How subscriptions could help you maintain your edge
Businesses are looking to transform their companies through consumer-centric, data-driven growth, and subscriptions offer this opportunity. Managing a smart, tailored subscription program is key to generating scalable business growth and ensuring that customers stay for the long haul.
To grow and maintain brand loyalty, leverage insights at signup, engage subscribers throughout the entire life cycle and create an omnichannel customer experience. Read this article by Theresa McEndree, Recurly’s CMO, to learn more.
What CFOs need to get right when adopting subscription models
While recurring revenue models can help with predictability, introducing them into a business has its challenges. Here are four areas CFOs need to get right:
Plan for new KPIs. Your business will need real-time reporting on customer cost per acquisition, lifetime value, churn, and renewal rates.
Model the impacts. Add value to product bundles, offerings, and promotions through scenario modeling. Integrated subscription management and revenue accounting platforms simplify this and allow accounting to change assumptions on recurring revenue models.
Pay attention to payments. Customers seekstreamlined buying journeys and one-click payments, and Alternative Payment Methods (AMPs) continue to consume market share. You need to understand what payment types to offer while ensuring they have the systems and processes to scale.
Automation is a must. Launching multiple billing models brings complex agreements that change depending on upgrades, downgrades, and promotional options. Additionally, this automation must extend to journal entry postings across multiple GAAPs and revenue recognition reporting.
It’s a fact: You can’t manage subscriptions at scale without getting revenue recognition right. Recurly finance experts discuss the challenges of accounting for recurring revenue. Watch now.
Subscription-based businesses: Five lessons for marketers
Successful subscription-based businesses have customers on speed dial and access to recurring revenue, creating an infrastructure where commerce and loyalty converge.
How can marketers continue to drive retention, scale, and create powerful subscription experiences? Recurly’s CMO, Theresa McEndree, shares her takeaways:
Explore complementary brand relationships
Create an intentional journey to increase loyalty
Offer promotions, free trials, and ramp pricing
Experiment with pricing, plans, and payments
Don’t overlook the importance of remarketing
In case you missed it
Amazon backtracks on cashier-less stores in London
Following a model pioneered in the U.S., Amazon Fresh has opted to kit each store with its cashier-less checkout technology in London, with two new stores in Croydon and Monument. In 2021, Amazon had its sights on 260 cashier-less supermarkets in the U.K. However, there are only 20 locations in the British market. Learn more on PYMTNS.
Meta to test monthly subscription service for $11.99
Meta Verified is coming to Australia and New Zealand. This new subscription plan will let users verify their accounts using an ID to get a blue badge and extra protection against impersonation. Pricing starts at $11.99 monthly on the web or $14.99 monthly on iOS and Android. Read more on Reuters.
Schibsted invests in car subscriptions
The media group has launched Honk, a marketplace for those seeking more flexible car ownership in Sweeden. No cars are sold–the site collects a range of car subscriptions starting at SEK 3,995/month. While conditions and prices are set by the suppliers, all subscriptions cover tax, insurance, winter tires, and service. Read more on Di Digital.
Movs is investing heavily in Sweden with new electric bikes
The bicycle subscription service adds two self-built electric bike models to the Swedish market: Nörd and Ergo. Users can rent them starting at SEK 645 a month. The price includes the vehicle, locks, home delivery, and Movs' repair service. Learn more on Di Digital.
Join Recurly at these exciting events
On-demand: The 2023 State of Subscriptions webinar. Set your team up for success with insights from more than 2,200 global brands. Learn the upcoming industry trends and consumer demands. Watch now.
On-demand: Recurly platform demo and Q&A. See first-hand how to reduce churn, maximise revenue, boost growth, and improve payments. Watch now.
From the Recurly blog
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