Companies like Netflix and Spotify are able to cultivate cohorts of customers who continue to submit additional payments over time for two interdependent reasons: Customers frequently use the service, and the service is frequently updated.
Adopting a subscription business model means making changes. That's not just changing how you price your products and how you interact with your customers. You also need a new way to relate to subscription metrics.
To give you some context for some of the costs you might not expect in the area of billing and payments, we wanted to focus on the payment processing capabilities required to grow online revenue and the development resources needed to make sure everything is functioning smoothly.
To effectively collect payments in a secure manner, you must, among many other things, open up merchant accounts, put payment gateways in place, manage contracts with global payment service providers, comply with PCI DSS, and abide by global taxation requirements. When you handle all these things on your own, you are acting as your own merchant of record (MoR).
Whether your online sales strategy is nice or naughty over the next few months will determine whether you wake up to a stocking stuffed with shiny new subscription revenue ... or an inert, lusterless lump of unengaged users.
The road to global subscription success is paved with knowledge and understanding. Beyond creating seamless customer experiences and implementing complex billing scenarios, you also have to know what compliance issues you will face on your road to global customers and understand how to mitigate that risk.
In this video, cleverbridge Co-Founder Craig Vodnik explores the complexity of subscription billing models.
It's easy to overlook important costs when comparing in-house and outsourced subscription billing solutions. In order to determine your true costs, you need a full cost breakdown and clear visibility into everything that global subscription billing entails.
Taking your business global is filled with complexity. The challenges complying with tax and privacy laws multiply with each new market you enter. Recently, cleverbrige Co-Founder Craig Vodnik sat down with Technori's Scott Kitun to discuss when and how companies should address their global tax and privacy compliance.