As businesses move full-speed ahead with digital transformation, collecting insights that can improve serving their customers, gaining deeper control over the subscription business model is an area that many are zeroing in on. Wednesday, a new update to Oracle’s Subscription Management platform—under its Advertising and Customer Experience umbrella—offers companies an improved way to gain information from customers and increase the efficiency of subscriptions, which it says will lead to cost-cutting as well as an improvement in current customer interactions.
In the era of COVID-19, many businesses turn to subscription models because of uncertainty; a recent report showed that in the fall of 2020, “subscription revenue grew by more than 350% through the past seven and a half years.”
Oracle’s Subscription Management boasts that it can give companies a heads up on account health, drawing from information related to finance, supply chain and customer experience applications.
“Over the last 12 months, many organizations have embraced subscription business models to grow recurring revenue streams while enhancing customer experience,” said Katrina Gosek, vice president, product strategy, Oracle Advertising and Customer Experience (CX), said in the press release. “The latest updates enable businesses to quickly address issues that lead to customer churn and take steps that enhance the subscription experience to improve the likelihood of renewal.”
Oracle’s Subscription Management will use an AI-based model to give a more clear view of why customers may or may not be renewing, which can help sales reps address issues before they lead to a cancellation. It will also create ways to connect to at-risk customers, as well as keep current loyal customers informed about their accounts.
The platform will also generate reports for businesses, highlighting “monthly recurring revenue (MRR), most frequent product upgrades and downgrades, annual recurring revenue (ARR) and total contract value (TCV) by account and product, and average revenue by customer help organizations gain greater insight into customer activity,” the press release states.
Customers using the platform will have greater control over managing their subscriptions on their own, which is another cost-cutting feature.
Finally, service technicians get the chance to view rates, discounts, and other offers that subscribers are offered, and can instantly give new offers to entice customers.
Perhaps one of the best features is greatly reducing the time for processing subscriptions.
One customer explained: “With Oracle Subscription Management, we have reduced our subscription processing time from several days to hours, which has enabled us to focus more on value-driving initiatives, create new business opportunities, and most importantly, provide an outstanding customer experience to our subscribers,” said Trevor Persaud, director, revenue cycle at Edmunds, said in the press release.