?? Staying ahead of the curve with subscription-based product management

As consumers continue to shift towards subscription-based business models, product management is changing. Subscription-based models, in which customers pay a regular fee to access a product or service, are becoming increasingly popular across a wide range of industries. This shift is having a significant impact on the way products are developed and marketed.

To keep up with this trend, product managers must adjust their strategy to focus on customer retention and long-term relationships, rather than one-time sales.

For example, companies can make use of loyalty programs and customer relationship management (CRM) software to track customer preferences and reward customers for repeat purchases.

?? The Key to Subscription-Based Product Management: Retention

One of the biggest challenges of subscription-based product management is retention. With a traditional product, the goal is to make a one-time sale. But with a subscription-based model, the goal is to keep customers paying month after month. This means that product managers must focus on creating a product that is valuable enough to keep customers coming back, and on developing strategies to retain customers over time.

Retention strategies must be continuously evaluated and adapted to ensure the product is providing customers with sufficient value and a good overall experience that will keep them coming back.

The customer retention rate (CRR) is calculated using the following formula: CRR = ((E-N)/S) x 100, where "E" is the number of customers at the end, "N" is the number of customers acquired during the period, and "S" is the number of customers at the start. [What is customer retention? - Salesforce EMEA]

For instance, customer loyalty programs can be used to reward customers for their loyalty, such as providing them with discounts or exclusive access to certain products.

?? Subscription-based Model and Data Analysis

Another important aspect of product management in the future is data analysis. Subscription-based business models generate a lot of data about customer behavior, and it's essential for product managers to use this data to understand customer needs and preferences. By analyzing data on customer usage, product managers can optimize their products and develop targeted marketing campaigns to retain customers and attract new ones.

In addition, product managers should monitor customer feedback and surveys to ensure that their products are meeting user demands and expectations. This is especially important for subscription-based business models, as customers can easily switch to competitors if their needs are not met.

For instance, customer feedback can be monitored through customer service tickets, customer surveys, and customer review platforms, such as Amazon or Capterra.

?? Let's discuss! How do you see subscription-based business models impacting product management in the future? Share your thoughts in the comments!