by Success in subscription means customers stick around and spend more. And repeat. Simple to say. But keeping clients hooked and compounding growth is easier said than done.
Who is the equivalent of your Chief Subscription Officer?
If the answer is the CEO, then they’re looking at all revenue, not just annual recurring revenue.
If it’s commercial directors, then there’s only so much agency they have on the rest of the organisation. I think there’s a gaping hole in the set up.
In the absence of that role, how do you decide how to grow your subscription business?
Ask a group of b2b subscription leaders in a room and, if the answer isn’t “it depends” then the response will be a version of, “Increase pricing! More sales! More product!”
In fact it often plays out as, “More product so we can increase pricing. And more sales.“
That doesn’t mean it’s wrong. But more of anything comes at a cost. The cost of…
- More product = feature bloat
- Increasing price = restricting market
- More sales = buying churn
The system needs balancing. And leverage means working out where to intervene in the system. There are lots of points where you can intervene. Especially if you haven’t defined the system.
What is the most effective lever to pull?
Changing the goal of your system and flicking a switch on the mindset of your team. Get these interventions right and you have a magnet for customers and for talent. Where success breeds success.
‘Changing the players in the system is a low-level intervention, as long as the players fit into the same old system. The exception to that rule is at the top, where a single player can have the power to change the system’s goal.’
Donella Meadows
Is subscription all, or most, of your business? If it is, then the goal of the system is improving revenue retention.
Compounding growth is the lifeblood of your organisation.
This goal links to the need for your solution to have an impact on your customers business.
What must be true to create customer impact?
- The product must be effective.
- The team must understand how to use the product to solve customer problems.
- And the customer must see measurable results to stay on the hook.
There is no Chief Subscription Officer…yet
There is no listing for a a Chief Subscription Officer on Linkedin. But in the absence of the role…
Who is the single player in your organisation who will change the goal of the system and alter the mindset of the teams? What would make a Chief Subscription Officer the secret weapon for subscription success?
Because I can’t find a CSO to interview, I used a prompt to interview myself about this topic. It’s a fun process.
Here’s the summary of our conversation about what’s on the mind of a hypothetical Chief Subscription Officer.
Unpacking the Subscription Game
B2B subscriptions are not like your regular subscriptions. There is no single point of sale. There is no monthly cadence.
This means navigating different decision-makers, influencers and many end users in your customer base. And creating alignment across your own team. With little in the way of clear answers about what makes for subscription success.
In B2B subscriptions, the legacy mindset is 80% experience, 20% science and art. Meaning it’s hard for this knowledge to flow around the organisation.
Showcasing Our Winning Streak
This is about established subscription brands. This means there should be power in showcasing successes and evidencing social proof.
The intelligence about retention and high value customers is used to pursue expansion revenues and new clients.
Finding Our Perfect Match
Like matchmakers of the business world, we pair our product with the ideal customer.
We identify the right fit to make sure our solution is a bullseye for our customer’s results. We are a “must-have” solution. Nothing less.
Keeping the Momentum: Retention and Expansion
The momentum for our business is revenue retention. But by focusing on creating value to fuel in account expansion, retention takes care of itself.
Think new user groups, fresh use cases – it’s like adding extra toppings to a pizza. It keeps things interesting and keeps customers hooked.
Team Synergy: Everyone Scores on Revenue Retention
We’re shaking things up by measuring all teams based on revenue retention. Why? That’s the goal of the system. So it’s everybody’s goal.
Striking the Right Note: Balancing Growth and Poise
Sustainable growth is chasing new customers, balancing growth, improving product, delivering killer results. And ensuring our team is in sync.
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