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How can Brands Benefit from Using Subscription Services

Category: Growth

How can Brands Benefit from Using Subscription Services

How can Brands Benefit from Using Subscription Services

The subscription-based revenue model is fast emerging as one of the most sought-after option for businesses. While the model has been around for quite some time, its popularity has sky rocketed in recent times, owing to advancements in technology and changing consumer preferences. The subscription model has proved to be successful for various services such as health clubs, magazines and newspapers in the past, but now it has been extended to several other segments as well. Here are some of the main benefits offered by subscription model.

Promotes Customer Loyalty

Subscription model is highly customer centric and provides robust value to the clients. This proposition, in turn, promotes customer loyalty towards the business as it helps in building long-term relationships. Automation of the purchase process leads to brand awareness while the convenience of the model prompts customers to come back. The model also offers various other benefits such as flexibility and savings. As the customers are required to sign up and then set up the schedule only once, it also saves time for them. A subscription-based model promotes accountability as well, since the businesses are required to ensure that they keep providing their products and services at existing standard of quality or exceed that.

Scalable

The subscription-based model is not only good for customers, but it is highly convenient for businesses as well. One of the biggest advantages of this system is that it is very flexible. As the business grows and the customer base expands, the revenue model should be able to accommodate higher volume. This feature is beneficial for the customers as well since they can adjust their purchases without undergoing additional paper work. This model is suitable for scalability as it is easy to set up and understand. The companies may plan their work load in advance since they can predict the demand in a more reliable manner. Such forecasting may also help businesses in designing their marketing strategies in a way that their operations become more efficient and economical.

Budget Friendly

This revenue model helps both the businesses and clients in the budgeting process. As the businesses have useful data in the form of predictable revenue stream, the process of forming plans and budgeting becomes a lot easier and more robust. They are better able to form their expansion plans and strategies. Similarly, customers are also aware of their future expenses and are assured of no surprise escalations; they can design their personal budgets well in advance. They are also able to exercise better control over their expenses. The predictability associated with this revenue model makes future planning more convenient.

Economical

The subscription-based revenue model also tends to be more economical as it allows businesses to acquire customers for a longer period of time, thus reducing the costs related to customer retention. Once the customer has subscribed, the business may then focus on providing them with the best possible experience through their products and services. The model is economical for customers too as they are assured of a flat rate for a fixed period of time. Many times, such a model also allows the business to achieve economies of scale, which may then be passed on to the clients. The subscription model has also been found to offer higher margin and thereby bigger profits.

Value-Added Service

While the subscription-based model is related to revenue management, it offers a host of other services as well. The data provided through subscription plans can help you carry out better analysis. You can get detailed information about the type of subscriptions which become more popular and the various criterion used by the customers to make their decisions. With the help of such data, the business may tweak their marketing and operational activities. It can also aid the funding process of nascent firms as they can get more reliable data about their future revenue and expenses, thus providing better business valuation.

The subscription-based model is now prevalent in almost all the business segments. The model helps in optimizing customer acquisition and retention costs, improving the margins for the organization. However, it is important to design the subscription model as per the features of your target market.

What Does the PayTabs Payment Platform Mean for Your Business?

What Does the PayTabs Payment Platform Mean for Your Business?

Online payment gateways are vital for the smooth functioning of e-commerce companies. Without this service, e-businesses would not be able to able to accept and process payments from their clients, thus jeopardizing the growth of their operations. It is highly crucial that internet businesses pick their payment gateway providers with utmost care as any snag in such services may cause massive losses to not only the business itself but also to its clients. With PayTabs, you can ensure that you get the best services at just the right price. Following are some of the ways in which PayTabs can help you in boosting your business efficiency.

Integrated Services: PayTabs offers a one-stop solution for your payment processing requirements. Its system is highly adaptive so as to ensure that you are able to customize the operations to meet your requirements. The service can be easily integrated with your website and provides seamless offerings. The system allows you to accept payments in 168 different currencies, making it highly recommended for businesses with cross-border operations. It also comes with a smart dashboard so you can manage different parts of your online business from one centralized place. This dashboard will help you in achieving efficiency as now you can take a quick glance at your different business operations in one place.

Safe and Fast: While deciding on an online payment system, it is important to ensure that it provides encrypted and secured payment processing. This is because online payments involve the exchange of highly sensitive information including bank details, credit card numbers and private identification details. PayTabs is PCI DSS certified, which means that the system provides secure processing services. The system also has anti-fraud measures in place so that you can carry on your business without worrying about falling for scams etc. Owing to its transparent operations, PayTabs has emerged as one of the most reliable online payment processing systems around.

Scalable: Businesses do not remain static, and rather evolve over a period of time. The mark of a good online payment system is one that can grow with your business, with minimal disruption in the operations. The PayTabs system is mainly designed for small and medium enterprises and so is ideally suitable for startups and budding businesses. However, it is also flexible enough to accommodate your requirements when your enterprise has grown to the next level. PayTabs offers straightforward payment systems which makes the transaction process simple and convenient for your clients.

Economical: Online payment processing systems are currently in the growth stage and are being equipped with new features every day. While it is important that your payment processor provides state of the art and modern services, it is also vital to keep the cost factor in mind. Different payment gateways offer different kind of fee plans. PayTabs aims to provide the best possible services at the optimal costs to its clients and therefore offers customizable payment plans. The fees paid to PayTabs covers a wide range of expenses such as set up fees, recurring fees and support fees. The pricing of PayTabs is entirely transparent so that you know beforehand how much you need to pay. With PayTabs, you can avoid facing hidden and surprise charges.

Value Added Services: While the main task of an online payment gateway is to process payments, but these providers may also offer a host of allied services. PayTabs strives to provide a holistic experience to its clients and thus offers different promotional schemes frequently. The payment system collaborates with a wide range of merchants and businesses so as to offer a wide array of value added services to its clients. Such value added services vary from discounted pricing to specialized outreach programs. Your business can benefit immensely from these professionally designed targeted services. With PayTabs, you not only provide the best services to your clients but also grow your business using unparalleled offers provided by the payment gateway.

PayTabs has grown exponentially in a short period of time. With its wide reach and customer centric business model, PayTabs has carved a niche for itself in a highly competitive market. You can also make your business grow with the help of PayTabs and its specialized bouquet of services.

What is Important for Startups – Products or Sales?

What is Important for Startups – Products or Sales?

Whether a business should focus on perfecting its products or on boosting sales is the eternal question faced by entrepreneurs. The dilemma has given rise to the concept of Minimum Viable Product or MVP where instead of trying to wait until the product is in faultless stage, the business decides to market it and continues with the improvement process. Here are some of the thoughts to help you decide whether your business should strive for the perfect product or for higher sales.

  • Focus on Product: It is believed that a large number of companies fail due to different factors related to their products or services. In many cases, the companies launch products nobody had demanded. In other cases, the product may simply not be up to the mark, that it may not serve the function it claims to serve. Therefore, it is important to understand the market and its requirements. The business should then focus on developing a product which can meet the market needs in an efficient manner. The firm may decide to launch the product with certain key features and then may continue to fine-tune it. For startups, product improvement is a continuous, never-ending process.

 

  • Work on Value Added Services: As important as it is to get the product just right to fulfill customers’ requirements, it is also imperative that proper attention is paid to allied services such as logistics, after sales care, etc. For startups, liquidity and funds are highly crucial factors, forcing business to release the product as early as possible. In such cases, the enterprise may enhance customers’ utility by providing them with value added services. Empathetic customer care services can lead to higher customer satisfaction by addressing several concerns and issues. With the help of add-on services, the business may be in a position to launch the product at an early stage and still gain loyal following.

 

  • Business Life Cycle Stage: The decision regarding the product launch is dependent on several factors including the life stage of the business. For a startup, cash inflows are highly important as these enterprises are generally dependent upon outside funding for carrying out their operations. For early stage ventures, it is a matter of survival to get a product in the market so that a steady stream of revenue may be generated. This stream is then used for meeting various expenses of the organization. So, while a mature business may delay the launch of the product till it is perfected, new and fledgling organizations are bound to follow the concept of Minimum Viable Product.

 

  • Test the Market: As a young business, you might be tempted to get your product out in the market. However, apart from the product and its features, it is also important to gauge the maturity of the market. This implies that the market should be ready for the product. Any product, if launched in a pre-mature market, is bound to fail. One of the biggest examples in this regard is the various early attempts made by technology companies to launch smartphones. However, these launches failed as the markets were not mature enough to accept smartphones. Further, the infrastructure required for proper functioning of the phones was also not available. Therefore, ensure that the market is ready for your product.

The crux of the discussion is that a startup requires both a perfected product and sales revenue. It is the striking of balance between these two goals which ensures the long term survival of an organization.

How to Increase Alternative Checkout Options

How to Increase Alternative Checkout Options

For an e-commerce company, offering attractive checkout options to the customers is one of the most challenging tasks. Providing alternative checkout options may help a business in achieving a higher checkout process conversion rate, which is one of the most important metrics for gauging its efficiency. Another advantage associated with providing alternative checkout options is that it helps in controlling the rate of shopping cart abandonment by the customers. Further, smoother checkout process also provides an inducement to the customer to make a repeat purchase with the business.

Following are the main ways online businesses may provide a friction-less checkout experience to their clients and improve their business efficiency.

  • Make Sign Up Optional: It may seem tempting to make sign up necessary for checking out since it can provide you with valuable data but this requirement may put a serious dent in the conversion rate. Instead of making sign up mandatory, make it optional but with some incentive attached to it. For example, you can convey to the customers that the sign up may make the process faster. Another option is to let the customers sign in with alternative accounts such as Facebook or Twitter. This type of checkout can be customized so that the business may harvest the data from the customers’ social media accounts after receiving due permissions.

 

  • Simplify the Process: If you are not convinced about the idea of checkout process sans sign up then you may focus on simplifying the whole procedure. There are several tricks to make it easier and faster for your clients to complete their sign-up process so that they can check out in a smoother manner. You can use simple tools such as making use of Google Autofill which can complete various data fields in a jiffy. You should also ensure that the checkout procedure is simple and is not unduly complicated with a number of steps involved. With each additional step, the likelihood of the client abandoning their shopping cart increases exponentially.

 

  • Use Perpetual Shopping Cart System: There are several ways you can motivate the customers to complete their checkout process. Allow them the freedom to check out for each item separately or to club them together in a cart and then to check out for the entire order. Different eCommerce businesses may adopt different strategies in this regard, mainly depending upon their business and organizational structure. Perpetual shopping cart system is one such technique where checkout page is preserved perpetually if the process is not completed. So, when the customer visits your website next time, they may be tempted to eventually complete their shopping experience.

 

  • Work with Your Payment Processing Partner: If you run your online payment in collaboration with processing partners then it makes sense to receive expert advice from them. PayTabs can help you in simplifying your payment process and introducing alternative payment options for your clients. As an eCommerce operator, you should ensure that you collaborate with those payment processors who are at the helm of technological innovation. PayTabs is such a payment processor as it deploys latest technologies for making the entire process smoother and hassle free. Thus, eCommerce business owners can bring about exponential improvement in their performance and efficiency by collaborating with

 

  • Optimize the Checkout Process: There is no one single way to provide the best services to all your clients. Further, the checkout process also depends on the way your eCommerce business and website are designed. Based on these factors, you may decide to let your customers enjoy a faster checkout with express purchase of individual products, instead of making them collect these items in a shopping cart. At the checkout stage, you may further entice the clients by offering them freebies in the form of discounts, cheaper shipping rates or even free shipping. Discounts may be designed in such a way so that you can tempt the customers to make more purchases to earn higher discounts.

 

With the above methods to improve your checkout page experience, you can bring substantial improvement in your conversion rate and overall efficiency. While most of the measures are internal to any business, external factors such as tying up with the right kind of payment processor may also have magnifying impact on your bottom line.

Ain’t No Mountain High Enough

Ain’t No Mountain High Enough

Thanks to the fact that the fintech industry is still in its early phase of development in the Middle East, it seems to be a given that the companies that make up the industry are those of modest beginnings and spectacular growth thereafter. Yet, investing in this sector of the economy in the region remains to be a risky proposition for a variety of factors, not least of which is the fact that, relative to other parts of the world, the surrounding infrastructure here requires further development and better integration with the financial markets. It would be understandable, therefore, for investment to gravitate toward other industries. But there’s a catch.

Easier and lower-risk investment opportunities may appear to exist outside of the nascent fintech industry, but such “easy” investment opportunities tend to attract the biggest numbers of attempts, which means that only be so many people who can succeed using the same hackneyed formula. That way, some people — scratch that: lots of people — are bound to find out that their returns are ever diminishing and that their resources are ill spent. To make it in the market, therefore, one must learn to ride the wave of constant change that markets so often experience and must learn to take calculated risks to capitalize on the market’s shifting tides.

If we look at the trends in the markets regionally and globally, one thing is as clear as day: fintech’s tide is ever-rising. The surrounding environment of a fintech startup is arguably just as important as the vision and strategy of the entrepreneur. Today, on the other hand, we find that establishing such an environment is written into the government’s long-term strategy. Consider how Saudi Arabia’s forward-looking Vision 2030 explicitly concerned with creating “incentives to foster use of cashless payment solutions,” for instance. As a result of that vision, the Saudi Arabian Monetary Authority has commissioned the giant financial firm Deloitte to oversee the process of turning Riyadh into a bustling fintech city. Relatedly, the economic vision has also resulted in the creation of a consortium of Saudi fintech startups to national banks to international technology powerhouses, all under the banner of “Saudi fintech.”

Saudi Arabia’s initiative, which was announced roughly a year ago, is now working on jumpstarts the fintech scene in the region’s biggest and most important economy. The rapid change and progress it’s experiencing are making host of advantages available to newcomers of tomorrow – not least of which is the fact that they have allies in the policymakers at the highest echelons of government.

The opportunities are there for the taking.

About the author

Mahmood Almahmood is a translator and editor at a national news service. Trained in the social sciences and the arts, he enjoys staying abreast of the business press and analyzing its trends.