How to Choose the Best Subscription Management Software Without Guesswork

There is no doubt about the fact that the subscription economy is the future of e-commerce. And 2020 marks the rise of the subscription economy. From softwares to diapers, everything is available via subscription.

And if you are looking for a subscription management software, this guide will help you make an informed choice.

The nine criteria for choosing the best subscription ecommerce platform are carefully selected based on modern consumer behavior and the challenges you might face.

Let’s get started.

1. Pricing flexibility

Pricing can be a tricky beast in the world of subscriptions. It can change and evolve based on your business priorities and marketing programs. Hence it is of paramount importance that your subscription software supports pricing flexibility. For instance, a yearly subscription can offer bigger discounts while quarterly could offer a small discount. And monthly subscriptions will be without a discount. Another point to consider is the ability of your subscription software to change pricing based on product personalization. Another point to consider is the ability to include tax and shipping in the subscription price. Because modern subscription consumers expect you to include shipping and tax in the subscription price.

2. Easy to pause, cancel, or delay

Today’s subscription consumers are smarter than ever before. Just one wrong charge will put them off and make them cancel their subscription. The reason is simple. They are comparing your service with the best experience they had before with another provider. So if you charge the subscriber when they are on vacation, it might be labeled as a bad experience. Hence, your subscription platform should support pausing the subscription when they are on vacation, delaying it, and the ability to cancel with ease. The ability to give your subscriber the power to decide when they want to be charged can result in better retention and loyalty.

3. Dunning management

Failed credit card payments are one of the biggest challenges faced by subscription services. Your subscription software should support automated dunning management. The system should automatically retry charging the credit card when the first attempt fails. Moreover, the system should also send an automated email notification to the user letting them know about the failed charge. The subscription software should also support automated attempts at secondary payment mode in case the primary method fails. Such automation ensures reduced support time from your helpdesk and efficient subscriber management. One of the ways you can reduce the intervention of your support staff is by having the ability to send automated email reminders for outstanding dues and also canceling the subscription when a certain payment threshold is due on the account.

4. Ability to track discount coupons and promotions

Time and again, your business will run discount campaigns and promotions to boost subscriber base or upsell existing subscribers to higher plans. In such a scenario, the subscription software should support effective tracking of discount coupons and promotions. Wrongly charging a user during promotion can put off the consumer and pave the way for cancellation. An effective subscription software will precisely apply discount rules based on active promotions. Moreover, it will keep a track of discount coupons applied for each user. Thereby reducing confusion while boosting marketing effectiveness.

5. Personalized invoices

Personalization is at the heart of a great subscription experience. The best subscription e-commerce platform enables merchants to personalize invoices with brand logos and colors. This gives the subscriber a better experience and helps boost brand recognition and loyalty. This may sound trivial but these little things that make the entire experience count.

6. Security and PCI compliance

Credit card fraud is on the rise. Moreover, the security threats on e-commerce have been increasing. There is a huge risk of websites getting attacked by hackers and loss of valuable personal and credit card data. Subscription e-commerce software should have the ability to detect fraud. Moreover, the system should be PCI compliant so that credit card information is secure when it moves from one system to another. The absence of strong security mechanisms can put your business at the risk of huge fines and lawsuits.

7. Robust APIs

API stands for Application Programming Interface. API is the way by which your application can exchange data with third-party systems. Let's say your subscription system needs to be integrated with an ERP software that is connected with your suppliers. As soon as a certain product reaches an inventory limit, the ERP software automatically triggers your supplier to replenish the inventory. This kind of smart integration can potentially save tens of thousands of dollars in unsold inventory. Your subscription software should have robust APIs that can take care of a variety of use cases. Ask your subscription software vendor for API documentation and examples of the kind of APIs integration they have done.

8. Third-party integrations

This one is obvious but equally important. For instance, if you are running a subscription box service you will most likely need integration with third-party fulfillment service. Likewise, your subscription system should integrate with a variety of marketing tools, email service providers (ESPs), payment gateways, and accounting systems. Third-party integrations will ensure that your subscription program is seamless and you can ramp up your resources quickly without having to do custom programming.

9. Intelligent Reporting

The success of any subscription business hinges on the three key metrics:

1. Subscriber growth rate (SGR) - The rate at which your subscribers are growing.

2. Monthly recurring revenue (MRR) - The total recurring revenue generated every month

3. Churn rate -The percentage of subscribers canceling their subscription each month.

Your subscription management software should not only display these metrics but also offer intelligent insights on when and why a certain change happens. This will allow you to make smarter decisions and run your business effectively.

The best subscription e-commerce platform such as 39shops offers intelligent reporting and insights for your subscription business.

I hope these nine criteria help you evaluate and decide on the best software to run your subscription business.

Got questions or concerns about a specific software?

Just drop your question in the comment section and let us help you make the right choice.

Wyne is a business Analyst. In his spare time, he loves to do sports activities.