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4 challenges subscription services face

Reliable fulfillment is essential to a successful subscription company.

A subscription-based business has tremendous opportunities to build a loyal base of customers and grow over time. However, to achieve lasting success, the organization must first overcome a number of challenges. With wise strategy and the right technology solutions, leaders can push their organizations forward, consistently delivering high-quality subscription boxes.

1. Building a base of customers

"Each aspect of a company's operations should be calculated to keep people engaged."

To thrive in the long term, a subscription company must go beyond convincing consumers to try products with an appealing marketing campaign and keep them buying for many months to come. Achieving that goal means providing not only items that people want, but also a remarkable customer experience with every delivery and interaction. Each aspect of a company's operations, from the way products are packaged to how customer service representatives respond to any problems that arise, should be calculated to keep people engaged in the relationship.

By making the connection with customers a top priority, the business can maintain high retention and also bring in new subscriptions. After all, positive word-of-mouth and enthusiastic posts on social media are some of the best advertisements.

2. Establishing billing policies

While subscription companies have a major advantage over other ecommerce businesses because of their recurring payment model, that approach can also bring challenges. Some of the most common business problems faced by these organizations involve setting up effective billing policies. Drawing on strategic thinking, marketplace knowledge and a secure payment processing solution, leaders can bring in consistent revenue while maintaining positive relationships with consumers and complying with applicable regulations.

3. Maintaining reliable fulfillment

One of the most important aspects of making a subscription-based business work is getting packages to people's door in a timely fashion. As a company expands, meeting that need can become extremely complicated. An order management system simplifies the process of gathering the necessary information, tracking orders and communicating with customers.

4. Scaling up inventory

In the early days of a subscription company, managing inventory is often a simple matter. However, as the business acquires more customers and offers more options to maintain their interest, it must have the warehousing space and distribution arrangements to keep up with demand. With a robust inventory management system, organizations gain insight into the products they have on hand and take control of logistics.

Establishing a lasting business around subscription boxes can be both challenging and highly rewarding. SFG offers a variety of solutions designed to give companies a solid foundation, backed by decades of expertise.

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