INSUBCONTINENT EXCLUSIVE:
Guy Marion
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Guy Marion is CEO/co-founder of Brightback, the
first automated customer retention software for subscription businesses
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6 steps to reduce churn for high-volume subscription companies
We&ve seen our fair share
of shocking headlines recently: tenuous IPOs, the &retailpocalypse& and a fickle market have reset the way we size up subscription
Recurring revenue models have their pitfalls, and 2019 has certainly taught the industry a few lessons.
Next year, retention is set to be a
top priority for companies looking to keep customers engaged and drive growth
From niche products to personalization, how companies deliver on and measure the success of their customer experience will separate
successful subscription businesses from the next unflattering news story.
These seven trends will emerge to shape the way companies delight
and retain customers in 2020.
1
To meet consumer demand, more mainstream brands will experiment with subscriptions
We&ve all seen articles detailing the financial fall of
many brick-and-mortar stores
The retail crunch predicted years ago is coming to fruition as we&ve watched household names like Sears, Toys R Us and Barney consider
bankruptcy or go up for sale.
Consumers aren&t letting up in their preference for convenience; they want easier ways to buy, and that means
stores must develop better online experiences and offer subscription options or risk losing revenue
We&ll see big brands like NikeandIkeacontinue to experiment and expand innovative subscription offerings.
For struggling brick-and-mortar
businesses, subscription services could very well be a lifeline to retain a dwindling customer base
The shifting retail industry presents an opportunity for traditional companies to fully embrace recurring revenue models next year — smart
organizations will do so.
2
The golden age of niche subscriptions is gone, so fatigue will settle in
We&ve experienced a rapid period of subscription adoption, with
more options launching everyday
And that led us to a point of max fragmentation where companies and consumers alike are subscribed to so many niche products and services,
they can no longer manage or afford new offerings.
Because the proliferation of subscriptions are so vast, specialized products and services
will need to do prove their worth or risk being replaced
B2B (project management, martech, ecommerce) and B2C (clothing, streaming, meal delivery) companies alike must offer far better experiences
in 2020 than in years past
For B2B organizations, products must be integrated with larger systems to justify their existence
One-off point solutions that silo information and create broken customer experiences will no longer be accepted
And for B2C companies, pricing will have to be spot on as more competition vies for the budgets of consumers who haven&t budgeted for
increased spending.
Ultimately, not every company will be able to compete in the age of subscription fatigue, so we&ll see more
consolidation, partnerships and mergers occur in the coming year.
3
Customer retention will become the new frontier for marketers
It impossible to ignore the IPO press around WeWork, Blue Apron, Uber,
If 2020 tech and consumer unicorns have poor unit economics and aren&t turning a profit, they need to prepare to be the next ugly headline
Marketers can be a force for change by focusing on the long-term retention of the customers they acquire
And I believe they&ll do so happily
