It’s probably safe to assume that we all use some kind of software or app sold as a subscription model, such as a time tracking app or social media management solution. The 2021 G2 Software Buyer Behavior Report shows that companies use on average 11 software solutions and intend to buy 9 more this year.

Subscription management vendors should focus more on retention

Buying software is easier than ever due to cloud computing, which makes it more accessible, doesn’t require installation and significant upfront investments, and buyers can cancel their subscriptions. This also means that companies can now replace software easier, making it difficult for vendors to keep customers.

As a result, subscription management software isn’t enough anymore for software as a service (SaaS) vendors. Retention is the new battleground in SaaS, which is why Chargebee recently acquired Brigthback, a provider of “automated solutions to increase customer retention and lifetime value.” It’s also worth mentioning that Chargebee also acquired RevLock, a subscription revenue management platform, in October 2021.

Why does Chargebee need Brightback?

The main players in the subscription management software market already offer some features for retention, such as churn management. Still, they focus on a reactive approach rather than a proactive one. For instance, companies try to keep customers when they cancel, but what if they could identify detractors earlier? Or help users cancel or pause subscriptions, which makes them more likely to try it again, according to Brightbook’s 2021 State of Industry: Customer retention in subscription businesses report. The report also shows that buyers are less likely to recommend a product or service or try it again if the provider makes it difficult to cancel.

Brightback can help with the challenges mentioned above and more, such as automated workflows to create dynamic offers and personalized incentives and insights to identify why customers cancel and how to win them back.

We expect to see an increased focus on retention in the subscription management market through acquisitions or new features developed by subscription management vendors.

Edited by Jigmee Bhutia