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6 Challenges for Subscription-Based Companies and How an Outsourced Call Center can Help

Posted by Randy Clapp on Aug 23, 2019

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From Spotify, Amazon Prime, to daily newspapers and what we eat for dinner, subscription-based companies are a huge part of our lives.

In fact, according to a survey released by American consulting firm McKinsey in 2018, the subscription e-commerce market has grown by more than 100 percent each year over the past five years.

To put into scale just how much this industry has grown in recent years, the largest such retailers generated more than $2.6 billion in sales in 2016, up from a mere $57 million in 2011.

However, despite the industry’s huge growth, subscription-based ecommerce companies still face challenges when it comes to customer acquisition, churn, rate, the ease of cancellations and delivering a superior customer experience (CX).

Thankfully, that’s where the expertise and resources of a nearshore call center comes in. Here are the six challenges that your subscription-based company can overcome by customer service outsourcing:

Acquiring new customers: The acquisition of new customers is one of the major challenges facing subscription-based companies. This is largely down to poor conversion rates when a customer phones into your business.

Scaling up for cyclical demand: While subscription-based companies do not have the conventional challenge of seasonal demand that many companies contend with, it’s likely that your company does have a type of seasonal demand when it comes to your cycle of billing - something known as cyclical demand. Since you don’t have the resources to scale up, this period of time puts increased pressure on your customer service representatives and leads to poor customer service.

The costs and time associated with call repetition: Call repetition not only leads to frustrated and dissatisfied customers, it also wastes the time, money and resources of your company. Unfortunately, most subscription-based companies don’t have a strategy in place to reduce call repetition.

Saving the sale: More than one-third of consumers who sign up for a subscription service cancel in less than three months, and over half cancel within six months. That’s why it’s crucial your agents are able to save the sale when a customer calls in to cancel - unfortunately, this is an ongoing challenge for most subscription-based companies.

Upgrading customers for additional revenue: Your subscription company relies on the upgrade of current customers to increase revenue. A customer-focused and personalized customer service program of an outsourced call center will help your business grow in this regard.

Offering 24/7 customer support: Customers are demanding increased convenience and now expect to be able to get in touch with your organization on any day of the week, and at any hour. Despite this, it’s unlikely you have the in-house resources to offer round-the-clock-support.

How can an outsourced call center help address these challenges?

An outsourced contact, such as Advantage Communications, will help you address these challenges through state-of-the-art technology and expert customer service strategies that are designed for the unique needs of your business.

A high-quality outsourced call center will help your company address these challenges through:

Want to learn how an outsourced call center will help your subscription-based company address these challenges? Read our new ebook, titled ‘The Secret to Growing Your Subscription-Based Company’, for more information or contact our team of experts today.

Download Subscription-Based Company eBook

Topics: Customer Service Trends




Randy Clapp

Written by Randy Clapp

Randy Clapp has sold over $1 billion in the services industry working with leaders such as Hewlett-Packard, Electronic Data Systems, CompuCom and Avis Rental Car. He received EDS’ Inner Circle Award as one of the company’s top 100 performers, as well as the Top Leader Award with CompuCom. He earned his Bachelor Degree in Business Management and Economics from Northwood University. Randy Clapp attributes his success to: “…showing clients how to make or save money in ways they never thought possible”.

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