We all know the adage, a bird in the hand is worth two in the bush. When evaluating your company’s subscription sales approach, can you take advantage of that concept?

Many sales reps focus their energies on bringing in new customers, and they should. But don’t overlook the potential for increased sales opportunities from customers you already have.

Keep winning new deals 

As a subscription business, you need to keep up your new-sales numbers. However, offering new add-ons or extensions to your existing customers is just as important. As a business goal, you can aim for a healthy mix of generating new and “add-on” recurring revenue. A strategic balance of the two will ensure continual profits for your business.

Increase subscription add-on revenue

  1. Begin with the data

To understand the factors generating your revenue, start by tracking your renewal and add-on sales to current customers. What is your income revenue from new customer subscriptions vs. that of add-ons and renewals from existing and even long-time customers? Designate codes so you can quickly analyze the data. For instance, you’ll want to look at new subscriptions, add-on subscriptions, downgrades, or upgrades. Use reason code-based reporting to segment your revenue into distinct categories.

  1. Provide additional complementary services and products for your core subscriptions

Even while you concentrate on your new subscription offerings, make note of your customer’s present as well as potential future needs. If they buy new software, they will likely appreciate access to e-learning portals or reporting add-ons that will increase the value of their solution. Creating memberships or partner programs can also drive add-on revenue. For example, customers could opt into a membership offering perks or free delivery support – think Amazon Prime. Added capabilities extend the core value of your subscription offerings and add more recurring revenue to your bottom line.

  1. Use technology to scale upselling capabilities

Depending on your clientele, B2B or B2C, you can direct technology to identify additional upselling opportunities. Consider a few options:

  • Empower sales success with options to add additional items to the original quote. Guide selling by showcasing add-on products that your customer could use. Convince the client by showing the benefits and feature surrounding service plans (support/maintenance/memberships). Ensure your reps understand the value of cross-selling and upselling, and give them the tools they need to do it effectively. They shouldn’t miss opportunities to sell more as the CPQ flow guides them to ask the right questions.
  • Enact a process to create new opportunities based on existing subscriptions. Products and services that could be added to the customer’s portfolio would be flagged and identified as opportunities which can then be presented to the customer as a promotion.
  • Establish a process that will identify all subscription plans expiring in “x” days. When subscriptions are up for yearly renewal, create an opportunity that quotes a 3-year plan discount or cash-back option. Current customers can be put on a “subscription chain.” That will benefit both the subscriber and your company.

Add-ons are a win-win. You can offer your customers what they need with the increased convenience of one-stop shopping. Smart companies can increase their subscription sales by an impressive 10 percent to 25 percent or more simply by effectively selling add-ons.

Do your reps hesitate to offer subscription add-ons?

Some sales reps may feel that nudging a customer to make additional purchases will kill the sale completely. However, research shows that once a customer has agreed to buy, getting them to purchase complimentary add-ons is far easier and more profitable than finding a new customer.

Make your subscription business smarter

LISA, Bluefort’s License and Subscription Automation product suite, makes subscription businesses work better. LISA Reach is an application for customer service and sales teams, empowering them to drive digital sales processes with B2B or B2C customers. It provides the tool your reps need to accelerate selling subscriptions.

LISA is the only end-to-end subscription product suite built for Microsoft Dynamics 365. We can help you streamline your subscription operations, get teams working more efficiently, and design awesome customer journeys that will unlock revenue potential and enable growth.Top of Form

Download the PDF: Lead to cash full cycle here: https://bluefort.eu/news/stop-throwing-revenue-in-the-garbage/

If you’d like to know more about Bluefort’s technology solution that makes it easy to manage and scale subscription businesses, contact our experts at Bluefort.

By Bluefort, bluefort.eu

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