5 Customer Experience Tips for Subscription Businesses

Category: Customer Experience

5 Customer Experience Tips for Subscription Business (and Everyone Else)

man with packageAs our CEO Brad Birnbaum explains in his latest piece for Forbes, subscription businesses are posed with a unique challenge. Because their customers don’t actively interact with the brand on a regular basis unless there’s an issue, they need to work extra hard to stay connected and grow their loyalty and Lifetime Value.

Customers should become more invested and engaged as the length of their subscription grows. This requires agents to be well-versed on the product and offerings so they can take on a more active, consultative approach to build deeper connections. They need to be proactive, instead of reactive, anticipating need and reaching out before a problem arises—as customers are more likely to cancel than put up with a bad subscription experience.

While the same is true for any business, it’s the most pressing for subscription companies. Let’s look at some ways agents can go the extra mile to improve the subscription, or any, experience:

1) Collect Information:

The more you know about your customers, the better you can make your experience. If a customer’s profile isn’t completely filled out, agents should be prompted to get those answers during a routine interaction. Or, they could reach out with an example of how they could better customize the customer’s experience if their profile was completed. All of this data is the first step to helping agents become more active and engaged consultants.

2) Use Foresight:

If the weather in the forecast is set to cause a delay for customers in a particular area, you should be able to proactively reach out to those affected and give them the option for an earlier delivery. Customers will appreciate your foresight, and giving them say over when their items arrive is far preferable to waiting for an angry call asking when their order is going to be delivered.

3) Ask Questions:

If a customer’s behavior changes, such as pausing their delivery, then that’s a great chance for agents to engage with them and learn more about their habits. Maybe they’re going on vacation? If that’s the case, you can offer to ship it to this different location for no extra cost. This both teaches the customer about a feature they might not have known about while showing that you care about their individual experience and keeping their subscription top-of-mind.

4) Respond Faster:

In the event of your customer downgrading their subscription tier or asking to cancel, it’s important that your agents are able to get all the information they need ASAP. If you can automate your chat to send a conversational form asking what’s the reason and how can you help, then customers who might still be on the fence can provide more information and help your agents convince them to stay subscribed.

5) Reward Loyalty:

Brands like Bespoke Post and Boxycharm reward loyal customers by occasionally giving them more valuable items in their boxes. The longer they stay subscribed, the more frequent these surprises are. This incentives customers to keep subscribing, and adds real value to their experience.

Kustomer quoteBut even if you’re not a subscription brand, increasing customer Lifetime Value is a crucial part of the experience strategy. This is why more and more brands are adding a subscription model every day.

For example, the clothing marketplace Material World has streamlined their business model, going from a place where customers can find second-hand luxury items, to adding a subscription box stream to connect with customers who want a continual, unique, and low effort experience. Customers can exchange their old clothing and other items for a new outfit made up of pre-owned items from luxury brands each month using this new service.

It’s not just new brands experimenting with adding subscription—even strongly established brands like Sephora and Glossier are cutting into Birchbox’s market share by offering recurring subscriptions of their products. Now, even Starbucks has a subscription vertical.

Understanding your customers and increasing their loyalty with a great customer experience is a worthwhile endeavor for every kind of brand, whether that’s with a subscription model or with next-level CX.

As old and new brands catch on to the benefits of a subscription model, the ranks of delivery boxes will only grow, but the ones that will truly last will be those that understand their customers and use great service and customer experience to ensure their loyalty. Read Brad’s full overview of CX for Subscription businesses in Forbes here.

Written by Kustomer
Learn more at https://www.kustomer.com/

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