Choosing technology that automates and unifies processes minimizes growth pains in scaling subscription businesses.
Targeted technology choices
Choose platforms that
are built for purpose
Subscription businesses are unlike any other. The ongoing nature of relationships with customers is often considered purely in terms of repeat revenue, but it's much more than that. It needs to be considered in the context of how those relationships are nurtured over time - remembering the journey to date, supporting the customer and continuously giving them reasons to remain. That requires technology and systems that are purposely created to handle the demands and maximize the opportunities unique to subscription organizations.
Part of the reason for choosing platforms that are built for purpose, is that as each technology vendor grows, it’s natural that they expand the product capabilities. However, each tech platform (e.g., the CRM or ERP) will only be able to tackle subscription requirements from the original set of logic used to build it. The dynamic logic for the subscription business model requires a different approach in building the systems from day one. As a result, a platform that is built specifically for subscription businesses will give you a major competitive advantage.
Assessing technology options
Explore the market
There are a lot of subscription platforms on the market, but very few are more than simple billing systems. It's easy to be dazzled by promises of what's possible, but what's often obscured by the marketing is what's actually included.
The provider can show you everything that the system is able to facilitate, but will probably gloss over how it facilitates those things, unless you ask directly. Typically, all the things that get into the detail of a thriving subscription business (customer journey, logic for advanced billing and customer segment automation, data analytics, integrations, customer self-service etc.) are often left to be custom built—a detail that's left to the fine print. Every strategy update is an additional cost, either because it's an additional service, an additional provider or an additional customization. That comes with growing and unlimited, somewhat hidden expenditure as well as logistical challenges.
Make sure you explore your market and ask direct questions —don't just ask what a system does but how it does it to understand not just theoretical solutions but practical implementation.
Essentials of a business system
Understand the DNA of
the subscription engine
Subscription businesses need a platform with pre-built subscription logic, not just billing functionality. This is a fundamental part of a platform's DNA — it can't be built onto it effectively. Getting this right from the start plays a major role in minimizing risk and maximizing long-term business success.
Subscription logic that's unified across business functions is the key to automating business processes from commerce and billing to accounting. When it's siloed and disconnected from self-service customer journeys, sales and partner sales, the user experience is compromised, errors occur and data is lost. Trying to customize that connection is often what causes subscription projects to be long, costly or to fail.
This comes back to understanding not just what a platform can do in theory, but how it does it. This can be difficult to ascertain, even if you ask it outright, unless you're an expert in the tech itself. It also means looking for a platform that actually considers itself a long-term partner for your business. Rather than simply wanting you to buy and sign on the dotted line, consider how they plan to engage with you and work with you over time in a space that is constantly evolving and will require further development. Flexibility and adaptability need to be built into the provider DNA as well as the system itself.
Ready-made solutions
Look for pre-built rather
than custom build capabilities
Find a subscription platform that offers comprehensive, configuration-based and pre-built capabilities for the frontend, as well as automation within the customer journey.
Customization is often hailed as the Holy Grail when it comes to having the best for your business. When people use totally customized systems there's an assumption, or even an illusion of flexibility and control. In reality, total customization means they end up spending disproportionately on development and maintenance, making cash flow as well as business development much more challenging and risky than it needs to be.
The recurring nature of subscriptions poses a lot of unique challenges in designing business processes and automating them with technology. The first customization won't seem like a big deal, nor will the second, but as time goes on and the system becomes more complicated you become increasingly committed (notwithstanding contract terms). The entire operation becomes evermore costly to develop, and both logistically and financially cumbersome to maintain over time.
Alternatively (or additionally) you might try to tack on solutions from different providers—crowbarring technologies to work alongside one another, all with different update schedules, teams, you have no real insight into what's connected where and how, or who you need to talk to if something goes wrong.
Purchase a platform that has pre-built logic, pre-built user portals and a fully configurable approach.
Power your business
with the right subscription solutions
Book a free consultation
Power your business
with the right subscription solutions
Book a free consultation
Explore keylight's superior value compared to conventional subscription platforms
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Explore keylight's superior value compared to conventional subscription platforms
Compare now