Leverage subscriptions to maintain your edge
Start the long weekend with your weekly dose of subscription news. In this issue, we dive deeper into why subscriptions are key to driving and maintaining loyalty amid challenging economic times. Additionally, we review the steady projected growth of online grocery and the new pricing for the Paramount+ with Showtime integrated subscription service.
Three ways to make subscriptions recession-resistant
With a global recession still threatening to rear its head in 2023, many companies scramble to consolidate funds and slash budgets. How can subscription-based businesses compete and win in the marketplace during a time of high competition and economic downturn?
The key to making your business recession-resistant is improving the customer experience, maintaining recurring revenue streams, and making data-driven decisions. With our ever-changing economy, your strategy must be flexible and able to adapt to the most current data insights and trend projections.
Not sure where to start? Download our 2023 State of Subscriptions report to get the latest insights and predictions on subscriber acquisition, churn, payments, and growth.
How leveraging subscriptions could help your company maintain its 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
There’s nothing a CFO likes more than predictable revenue–the market rewards its steady, ever-increasing revenue. 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 now 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. Hear from Recurly finance experts as they discuss the challenges of accounting for recurring revenue.
Mass merchants gain steam in online grocery
Companies like Walmart, Target, and Amazon continue to bring in new online shoppers with their wide selection and low-price focus–winning them back may be challenging for grocers. In addition to heavily outpacing grocers, mass merchants also see high satisfaction levels with their services. Learn more on Retail Dive.
Paramount+ will go up in price when it combines with Showtime
The price increase will go into effect upon the “Paramount+ with Showtime” integrated service launch, which is set to occur early in Q3 2023. The ad-supported essentials plan without content from Showtime will cost $5.99/monthly, while the Showtime-equipped premium plan will be priced at $11.99/monthly. Read more on The Verge.
Join Recurly at these exciting events
On-demand: How to accelerate subscriber growth & revenue in 2023. Hear from Oscar Wall, Recurly EMEA General Manager, and Jonas Åström, Recuro Founder and CEO, as they discuss the macroeconomic landscape affecting the subscription economy and break down strategies to maximize revenue growth in 2023. Watch now.
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 you can reduce churn, maximize revenue, boost growth, and improve payments with Recurly. Watch now.
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