As “subscription fatigue” sets in and subscribers look to cancel or move on, subscription providers must be ready to adopt different strategies to retain customers.
While it rocked the economy and forced many businesses to shut down, the pandemic served as a catalyst to leverage the subscription business model globally. In Brazil, subscription-based businesses have grown by 167% during the last four years.
The movement flowed seamlessly, especially for physical products: whatever consumers needed on a remote and recurring basis, they could just sign up for a subscription-based model and voilà – no need to worry about overdue payment or out of stock items.
However, despite the forecast of 2 billion active subscriptions worldwide to on-demand streaming services by 2025 – a 65% increase if compared to 2020 – a counter phenomenon has taken place: the so-called “subscription fatigue.”
Subscription fatigue means that a customer who had previously signed up for several subscription services feels overwhelmed, and suddenly, they decide to cancel everything, thus increasing churn rates.
While this may be a concern for various countries, niches, and business models, it’s believed that recurring payment will only increase in Brazil, as we have discussed here in the blog the main reasons why.
Avoiding Subscription Fatigue
Whether you’re selling to Brazil or to other countries inside or outside LatAm, there are some tweaks and strategies businesses can use in order to boost subscribers’ loyalty to their brands.
- Deliver value
With repeated charges to the payment alternative of their choice, no further action needing to be taken, and a periodic delivery to look forward to, recurring payment models have so many more options to create value and develop a long-lasting relationship with customers than average e-commerce or brick-and-mortar shops.
- Give your customers control
Despite this growth, not all consumers are happy with their subscriptions – nearly two-thirds of streaming subscribers feel that the content they’re paying for isn’t relevant. Providing a customized experience is essential to avoid subscription fatigue.
The more you allow your customer to customize their own experience, like giving them the power to control their plan options, payments and features, the more you’re likely to achieve greater customer satisfaction and engagement.
- Focus on customer experience
The subscription streaming space is becoming more competitive, and consumers are asking for easier ways to seek out and enjoy new content and services in a curated environment.
Providers who want to thrive will need to think of different and creative ways to engage with their customers.
- Hassle-free payment experience
Last but not least, sits the payment experience. After all, none of the strategies above would work if payment fails or customers aren’t happy with the payment options available.
In Brazil, customers are twice as likely to shop for a specific product with a merchant who offers the payment method of their choice.
A Comprehensive Subscription Management Solution
With the subscription-based market in mind, aligned with an extensive knowledge about the particularities of the Brazilian market, PagBrasil has developed PagStream®, a unique solution that handles all your subscription payment systems.
We want to help digital businesses focus more on sales and marketing strategies and less on developing and maintaining payments. Our solution is hassle-free with a ready-to-use setup, with completely customizable rules.
Whether you are a streaming platform, e-learning website, SaaS, subscription club, or something else, your business can benefit from our comprehensive payment solution. If you wish to learn more, contact one of our team members!