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Subscription Billing Blog

How truth and channels affect customer communications and subscription billing

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Customers have always expected honesty from their service providers. One could even argue that advances in technology and evolved payment models - such as subscription billing practices - have made consumers even more critical of the businesses they interact with. Customer service, value and ease of use remain their highest priorities.To see this point illustrated in the real world, one…

How subscription billing can put an new spin on an old product

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Young adults and their parents will remember trips to the doctor's office as a child. The waiting rooms were often filled with bright, colorful toys like building blocks and bead roller coasters. Scattered among these knickknacks, one could always find the popular children's magazine Highlights. Now, the magazine is shifting from its printed roots, heading into the modern era with…

3 tips for using a subscription billing model to increase customer retention

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Keeping a healthy number of customers carries more weight for businesses in recent years. B2B International, a market research firm, polled B2B marketers across the U.S. and Western Europe and found companies were more attuned to customer retention in 2015 than in 2014, eMarketer reported. The study was conducted during October and November 2015 and spanned businesses in a variety of…

Amex-backed subscriptions head for a cliff

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Last year Costco announced that they were terminating their partnership with American Express and would no longer accept Amex at their stores nor would they issue Amex cards to members. This was seen as a big blow to American Express, as the Costco cards make up about 11% of their issued cards.  All Costco Amex cardholders will be issued a…

New vs. existing: Why companies on a subscription billing model should shift their customer strategy

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The matter of customer retention versus acquisition is one that's often debated. Studies show it's more costly for a business to recruit new customers than to maintain healthy relationships with older ones. However, every professional knows neither group can be ignored, especially when the business runs on a subscription billing model. Older customers sustain a company, and acquiring new ones…

Why businesses should be clear about subscription billing and customer communication

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Businesses adopting a subscription billing model must clearly define their terms and conditions to avoid negative press and multiple chargebacks. According to Business Insider, Kate Hudson's athletic line Fabletics and its parent company JustFab are under fire for misleading communication. Fabletics provides inexpensive fitness wear on a subscription basis: Consumers pay a fee and get a personalized outfit each month.…

How the founder of the Discovery Channel used subscription billing and quality content to avoid ads

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One content provider found great success switching from television to online content on a subscription billing model. John Hendricks first began his foray into video with the Discovery Channel, which launched in 1982. Hendricks eventually became chairman of the network's parent company Discovery Communications before leaving for a new project in spring 2014. That venture, CuriosityStream, launched in March 2015. Streaming…

How subscription billing can save a popular music provider

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The online music service SoundCloud has struggled with various issues since its beginning. In the past, the company came under constant fire over the fact that none of the music is provided was licensed. Numerous lawsuits from record companies like Sony and Universal forced SoundCloud to divert most of its funding from increasing its brand to paying legal fees. These…

3 factors to consider when choosing the right payment services provider

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Selecting a payment service provider is one of the most important decisions for online B2B or B2C companies today. Many organizations make the mistake of choosing the most budget-friendly option without regard to key factors that can have a major impact on their business. While such a choice might pay off initially, selecting a bargain service provider ultimately leads to wasted…

What service providers can learn from Autodesk’s switch to subscription billing

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Autodesk, provider of design and 3-D modeling technology since 1982, is changing to a software as a service subscription billing model. Previously, customers could only use the company's technology through expensive licenses and desktop-only applications.According to Digit, Autodesk stated in its press release that a SaaS business model improves customer experience by simplifying the purchasing, deployment and troubleshooting processes. The new…

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