Top 5 Subscription Show 2021 Takeaways

Whether you attended in person or online, there were several messages that resonated throughout the show. Here are our top 5 key takeaways:

1) Use a payment service provider experienced in subscription and recurring payments. At a minimum, make sure they support Cost-Plus Pricing, offer Account Updater, and provide Automated Level 3 Data Processing. For more info on what to look for, download our eBook, “5 Things to Look for in a Payment Gateway.”

Note: Account Updater is a must. Account Updater ensures steady revenue by helping you avoid failed transactions or gaps in services provided to your customers. With Account Updater, you can rest easy knowing that your receivables will not be delayed by expired cards, changed account numbers or closed accounts.

2) Assess your current tech stack. The pandemic has forced companies to accelerate their tech very quickly. This includes technology that allows you to gain customer behavior data and buying insights to measure against KPIs (e.g., CAC, LTV and churn rate) and offer customers a more personalized experience. Transformation will continue at a rapid pace; stay aware of changes and upgrades.

3) Pass-thru data for cost-saving benefits as well as increased authorizations. When you partner with an experienced subscription and recurring payments service provider, they’ll ensure you’re sending the correct amount of information to the issuer, including CIT (cardholder-initiated transaction) and MIT (merchant-initiated transaction) data. Passing Level 3 data to Visa and Mastercard provides access to lower interchange rates. Lastly, make sure you’re passing the right merchant category code for your business!

4) Deploy tech to reduce chargebacks and disputes. Some of the top fraud attacks by merchants include, friendly fraud, phishing, card testing, and identity theft. Fraud attempts doubled the first half of 2020, deploying fraud technology will reduce the amount of fraud types.

CNP disputes continue to rise and impact customer experience and churn. Follow best practices to lower disputes. For example, disclose cancel options clearly, comply with auto renewal laws, and respond to customer complaints in a timely manner. The customer experience doesn’t end at payment. The post-purchase experience (surveys, etc.) is critical to keeping loyal customers and help lower disputes.

 5) Last…but not least, provide a great customer experience!

Whether it’s disclosing T&Cs clearly in plain sight or a frictionless check out and payment process, gain your customers’ trust and repeated business by being transparent and by doing the right thing. The relationship you have with your subscribers and their experience with your brand is how you will retain your customers. Remember, it’s much more costly to acquire a new customer than retaining one!

 

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