As businesses around the world adapted to unprecedented challenges during COVID-19, many turned to innovative subscription strategies and quickly rethink their approaches. In 2020, we gathered a team of Zuora experts to guide our customers through this transition in a series of webcasts. Now that we are entering a new phase, these strategies still remain relevant for driving growth and customer loyalty. Below are three subscription strategies that can help your business scale effectively:
Change Prices En Masse in Zuora
If you have the chance to offer customers a different pricing plan, there is a fast way to do that. With the need to stay from home during COVID-19, certain digital subscriptions were in high demand - web conferencing tools, homeschool educational offerings, internet packages, news apps, workout apps, and online entertainment are a few that we've already witnessed. Zoom, for example, removed usage limits for certain countries and opened up its platform to offer a free K-12 School Program for students learning from home. Learn how to take advantage of Zuora's pricing update capabilities. Early movers such as Zoom were able to quickly update pricing en masse and push new offerings to market.
Issuing Bulk Credits and Adjustments for Customers
If you find customers struggling to pay, you may need to issue them a credit or adjustment to help them cope with their current situation. This results in the need for large volumes of credits and refunds and it's difficult for finance departments to issue these balance adjustments without spending time manually processing each one. That simply won't scale fast enough with this situation. If you are facing this challenge, learn how to immediately take advantage of the bulk credits and refunds capabilities in Zuora. Not only will it ensure a longer term customer relationship, it also saves your team from being consumed by repetitive manual work.
Suspending or Pausing Subscriptions in Zuora
Subscription businesses giving customers the flexibility to suspend and later renew their subscriptions is always a good strategy. In fact, we've seen that companies offering the option to suspend and resume have an average churn rate of 25%, as compared to 30% churn rate for those that do not. That means saving one in six would-be customer churns! As we’ve seen during COVID-19, this strategy is more important than ever. If your company doesn't offer the flexibility to pause a subscription yet, this is a good chance to help your customers and keep them.
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