Various Benefits of an AI Subscription Pricing Solution
Subscription pricing is actually a business model where customers needs to pay a subscription in order for them to have access to a service or product. Such strategy in fact was made by newspapers and magazines, but companies and websites that uses such model for their services and products constantly increases.
When it comes to implementing subscription-based pricing strategies, you need to consider on the needs as well as preferences of the audience and also on the budget of your business. When prices are low, you could not cover on the costs and when charging too much, a customer could compare prices in order to value and may not decide to subscribe.
Helps Uncover Hidden Sales Opportunities through AI
When it comes to obtaining and finding new customers, it is usually the top most priority for any growing business. The case of expanding customer base is in fact important for the subscription based business of which wish to thrive on the economy today. Also, through historical sales data, the AI will help in recognizing the previously undetected buying pattern for knowing which of the prospects would most likely buy services and also guide the sellers accordingly.
Helps Reduce Customer’s Churn
Through the subscription based business, lessening the customer turnover is important for growing Recurring Monthly Revenue (RMR). Also, the use of AI will help businesses in predicting customer turnover through assessing on propensity of risks to turnover. Also, through machine learning, they are going to help analyze real-time and factors that are associated with customer attrition like service underutilization or perhaps problems on customer satisfaction.
Increasing Renewal Rates
The case of maintaining high renewal rates on subscription services is essential for growing RMR. the use of AI will help businesses could proactively notify sellers and in initiating renewal process that is based with customer renewal histories. Another thing is that beyond notification and initiating renewal process, AI could provide sellers on timely next steps which will help in ensuring the best practices which are being used through the renewal process. Also, a subscription business model means more dynamic relationships with customers because they could swap or upgrade services over time. You should also consider leveraging AI for you to find patterns for customer renewal data in maximizing service renewals through existing customers.
Leverage AI for Cross-sell and Up-sell
Another thing about AI is that it could help in identifying opportunities for up-sell and cross-sell subscription service for existing customer base. Through AI, the customer service representative also could be prompted in guiding customers for data plans with higher data limits or on unlimited data plans which will help customers in saving money in the long run through the case of avoiding costly overage charges. Also, AI could be incorporated into digital commerce portals in order to help increase the cross-sell and up-sell benefits in maximizing self-service of customer buying experience.
There’s a percentage of enterprises that offer products through the subscription model which seems to be growing. It is likewise essential that the business will modernize the process and should consider evolving to be able to adopt new technologies in order to compete effectively and to likewise sustain growth. AI will likewise help in growing your subscription-based business to thrive.