The Subscription Economy is being driven by the modern consumer's ever-changing needs and preferences. Modern consumers' expectations go beyond just a great product. This has pushed companies of all kinds to invent new services that offer consumers ongoing value. Consumers are also rejecting the traditional ‘one size fits all’ approach. Instead, they are embracing services that offer them choice, flexibility and treat them as the unique individuals that they are.
This is precisely why “Amazonification” and “Uberification” have become accepted terms in the direct-to-consumer (D2C) sector. Companies that don't adopt an Amazon or Uber-like philosophy are at high risk of being left in the dust.
– Accenture, “Service is the New Sales” 2014
66% of consumers switched at least one of their providers due to poor service in 2014
These consumer service switches are estimated to be worth a staggering $6.2 trillion
Learn how top D2C brands like T-Mobile, Uber, Amazon and Apple are flexing to meet subscriber-needs in our latest e-book for D2C subscription businesses
Businesses that fail to adapt quickly to new consumer demands risk losing major market share. But in order to deliver subscriber freedom, businesses need freedom too. The freedom to experiment simply means having the ability to test out new strategies as subscribers’ wants and needs change over time. Operationally speaking, this includes things like launching new services, creating new pricing models, or handling new payment methods.
– Craig Barberich, Global Head of Media Solutions at Zuora
Meeting the modern consumer’s expectations requires a foundational and operational change in the way you run your subscription business. Your entire business from acquisition to service delivery to renewals and up-sells must be centered around your subscribers. This focus on subscriber relationships and the strategies to develop, monetize and maintain these relationships is critical to the success of any D2C subscription brand.
At Zuora, we work with over 600 subscription companies across industries, company sizes and geographies. What we’ve learned is that D2C companies all face similar challenges when it comes to subscriber acquisition, growth and retention. But most importantly, the winners excel at the following 4 strategies.
Subscriptions create ongoing and dynamic customer relationships. To be successful with the 4 strategies above, you need a modern subscriber-centric ecosystem that goes far beyond the capabilities of existing ERP and CRM systems. With Zuora, you can power your entire business with a dynamic Subscription Relationship Management hub built to flex and scale as quickly as your subscribers and your market.