Report: Subscription Companies Deploy Best Practices in Tough Economy 

Subscription companies are looking to deploy best practices as they deal with an economic downturn.

That’s one of the findings of a new report released by global payments and technology company FlexPay and PYMNTS.

The State of Subscription Business: Best Practices and Business Performance Drivers” found that 59% of subscription businesses say an economic downturn is the top challenge they expect to face in the next 12 months. Other challenges include attracting and retaining customers and dealing with cost increases, FlexPay said in a Tuesday (Jan. 10) press release.

“This report is an important resource for subscription companies to learn about best practices that every company can implement, which can improve operational efficiencies, and lead to accelerated revenue growth and higher profitability,” FlexPay Senior Vice President of Marketing Steve Arentzoff said in the release.

The new report, based on a survey of 200 subscription companies, provides a comprehensive overview of the subscription industry together with insights into key trends and best practices, according to the release.

It also identifies actionable recommendations that companies with recurring billing models can implement to improve operational efficiency, increase customer retention and accelerate revenue growth — all of which are key at a time when both the economy and customer growth are slowing down, the release said.

The report offers critical findings correlated with high-performing subscription companies, including the top metrics they use, the organizational structure under which they operate, the importance they place on measuring and managing lifetime value (LTV) and the ways they overcome problems in payment systems that can cause customer churn.

A payment decline feels like a slap in the face to subscribers, especially when it’s the result of a processing mistake on the part of a merchant or issuer, FlexPay Founder and CEO Darryl Hicks told PYMNTS’ Karen Webster in an interview posted in October.

“There are only three things that can give you an unassailable lead in the marketplace: how you sell, which is all about how you outthink the marketplace; how well you perform and deliver on your promise; and how well you collect your money. Everything else is noise,” Hicks said.