In April 2023, Twitter’s CEO Elon Musk transformed the social networking site’s “blue check” from a badge for VIP users to a monetized status symbol. The step enables subscribers to unlock premium features, including tweet edits, custom navigation, and 1080p video uploads. 

While the move was met with some criticism, it has undoubtedly created a massive revenue stream for the company. Facebook and Instagram are also hopping on the bandwagon, with their parent company, Meta Platforms, poised to launch a subscription service called “Meta Verified,” offering exclusive features such as account protection and direct customer support.

With these social media giants leading the charge in revolutionizing business models through subscription programs, it’s clear that 2024 will be a year where customer loyalty takes center stage. But at the heart of this transformation lies an often overlooked yet equally essential element: customer service (CS).

Let’s delve deep into the critical role that customer service plays in strengthening customer loyalty for subscription-based products and services.

Understanding the Subscription-Based Business Model

A positive brand experience facilitates meaningful connections, inspires customers, and leaves a lasting impression. But will a single interaction be enough to sustain brand loyalty?

Research shows otherwise. Of the 85% consumers who considered their buying experience positive, only 75% will remain loyal to the brand (a 10-point discrepancy). In short, a positive customer experience (CX) alone is no guarantee that your customers will stay with your brand in the long run.

Companies can bridge the gap by introducing a subscription-based business model. The subscription model (loyalty or rewards program) lets customers access a product or service by paying a membership fee, usually monthly or annually. Depending on their desired feature inclusions and packages, they can also choose from various subscription plans.

Beyond paying for exclusive content or perks, subscriptions provide a personalized and curated brand experience. Take Netflix, for example. Its subscription video-on-demand model offers access to a vast library of movies and series, available anytime and anywhere. Moreover, Netflix utilizes sophisticated algorithms to suggest tailored content based on subscribers’ viewing history.

When customers derive substantial value from their subscriptions, their loyalty solidifies, reducing the likelihood of turning to competitors. This not only secures ongoing revenue streams but also fosters the growth of a loyal customer base.

7 Key Advantages of Customer Service in Achieving Customer Loyalty for Subscription-Based Products

As subscription models continue to reshape consumer interactions, businesses can no longer ignore the importance of an exceptional customer experience in retaining customers and driving business growth. 

But with so many companies promising the same thing, how can you stand out? How can you transform your loyalty program from “ordinary” to “extraordinary?” We recommend integrating exceptional customer service solutions. 

Retention and Loyalty

A subscription plan isn’t a one-time purchase. Customers must periodically renew their membership even after subscribing to maintain exclusive access. 

But what happens when their payment doesn’t go through due to technical glitches on your end? The customer will contact your company, hoping for a quick fix. For instance, no one picks up and responds to their complaint. Or worse, the employee who takes their call lacks the proper skills to address their concern.

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Next thing you know, your customer cancels their subscription and switches to a brand with reliable customer and tech support.

Preventing such mishaps is possible by outsourcing a customer service team renowned for delivering top-notch customer care. With a focus on customer resolution and vast experience in addressing client needs, this team consistently provides the support you need without fail. In turn, subscribers will stay and advocate for your business, fueled by their favorable experiences with your customer support.

Addressing Issues Promptly

Speed is critical when it comes to resolving customer concerns. No matter how much effort you invest in improving your products and services, it becomes futile if you can’t promptly address your users’ issues.

We have the stats to prove this:

• Over half (52%) of customers want quick resolution
• 80% expect more immediate responses from brands

A delayed response not only undervalues your customers but also gives them the impression that their issues are not a priority. Consistent delays can ruin their trust in your company and ultimately increase the likelihood of customer churn.

To keep this from happening, you can outsource your customer service. Renowned for their first-contact resolution prowess, reputable outsourcing providers can promptly settle customer concerns in just one call. They also provide omnichannel solutions, allowing you to resolve customer issues seamlessly across both traditional and digital channels.

Upselling and Cross-selling Opportunities

Say you own a pet store known for selling affordable yet quality pet supplies. One day, you’ve decided to expand your revenue streams by encouraging your existing customers to upgrade their purchases and buy additional non-essential products without sounding too sales-y.

The most strategic way to achieve this is through a subscription-based program. Here, you can flawlessly redirect your customers into buying items to complement their original purchase (such as buying a pet bowl on top of their pet food). You can even personalize your recommendations and encourage them to buy a similar but better product.

Exploring these cross-selling and upselling opportunities can unlock untapped revenue streams for your business. Research shows that most salespeople who upsell (91%) and cross-sell (87%) generate an average of 21% of their company revenue.

You can maximize this gold mine by entrusting customer service to an expert team. Outsourcing firms keep comprehensive customer data, enabling them to customize your clients’ orders and effortlessly promote your complementary services or products that align with their needs. 

Feedback Collection and Improvement

Gathering customer feedback may seem daunting, especially when you don’t know what to expect or how your customers will react. 

But sometimes, to grow, we need to face the bitter truth. While negative feedback can hurt our ego, we should always take it constructively and use it to find our weak points, allowing us to make the necessary adjustments to improve our brand. Moreover, we’ll also learn how our customers feel about our brand, not just what they think about our offerings. 

Consider this statistic: 74% of customers maintain high expectations from a brand, particularly in how they’re treated. To boost customer retention, you must have a strategy to know whether your subscribers are satisfied with how you serve them. To do so, you can turn to an outsourced customer care team.

These customer service experts have been trained to empathize with your customers, understand their pain points, and extract data regarding necessary product enhancements. They also play a pivotal role in assessing your business performance, providing insights into customer satisfaction scores (CSAT), and suggesting actionable steps to elevate the overall customer experience.

Competitive Edge

As costs and interest rates continue to soar, sell-to-forget business models will soon be a thing of the past. With so much fierce competition dominating the market, increasingly more companies will evolve to find areas where they can expand revenues and make a difference. 

We’ve established that subscription-based ordering drives customer loyalty. But what is the most direct cause of customer loyalty? Customer experience is critical in fueling lucrative sales and cultivating a solid customer base.

Securing a pool of loyal customers helps you shift focus from customer acquisition, a costly yet non-sustainable business practice, to its more strategic counterpart, customer retention. This forward-thinking approach not only maximizes returns it also creates a passive income stream, mitigating the impacts of economic downturns.

However, ensuring customer satisfaction has become a formidable task in today’s consumer-driven market. It necessitates exceptional customer service teams capable of building personalized connections with subscribers. This, in and of itself, is a unique selling proposition that sets you apart in a hypercompetitive landscape, positioning your business toward sustainable success.

Building Trust and Satisfaction

When customers make purchases, quality, and cost aren’t the only things they look for. They want a brand they can resonate with; otherwise, they would unlikely subscribe to your plans and programs. 

How can you achieve a consumer-friendly image with which people would gladly do business? By improving their user experience and convenience. In doing so, you can optimize the signing-up process of your plan and introduce no-friction order adjustment actions.

Building an emotional connection is critical to establishing customer trust — an area where customer service professionals excel. Agents can showcase cultural sensitivity, brand transparency, integrity, and reliability in handling customer complaints to help foster a long-term relationship and increase the likelihood of repeat business.

Mitigating Churn

Customer churn in the U.S. amounts to a staggering $136 billion annual revenue loss, significantly impacting the bottom line. To counter this challenge and reinforce your value, revitalizing customer loyalty strategies is a must.

The first and arguably the most critical step is prevention. Instead of focusing solely on your customer loss, outsourced support agents can identify about-to-churn customers and perform damage control. For instance, if your clients haven’t joined their membership program, they can gently nudge them and shoot a simple “We miss you” or “Here’s our new items” email to spark a connection. Moreover, an outsourced customer service team can initiate conversations to understand why customers are drifting away to prevent potential customer turnover before it even happens.

Leveraging Outsourcing to Elevate Customer Service in Subscription-Based Products

Behind every successful subscription-based business is a team of skilled customer agents trained to generate profits, build customer loyalty, and curb customer churn.

However, in the face of crippling staff shortages within the country, companies in the U.S. find it increasingly difficult to keep pace with the rising demand for customer service. The answer lies in outsourcing, which allows local businesses to tap into a deep pool of global talent for a competitive edge in a tight labor market. 

What are the benefits of outsourcing customer service experts for your subscription programs? Let’s find out.

Scalability and Flexibility

Outsourcing allows businesses to scale their customer service operations based on demand fluctuations without extensive internal restructuring. This flexibility ensures efficient support even during peak periods when the volume of touch points spikes.

As your business grows, the capacity to seamlessly scale your resources up or down becomes necessary. Suppose your clients are unhappy with your in-house support team’s services, which would require you to find an immediate replacement. Outsourcing can expedite the process — no need to undergo costly recruitment and onboarding cycles. Your BPO partner will do the work for you. 

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Access to Specialized Expertise

Outsourcing partners specializing in dedicated services often boast unique skills and extensive experience delivering customer support across diverse industries and technologies. This specialized expertise significantly enhances service quality and expedites issue resolution.

Outsourced call centers also offer a network of proficient support staff equipped to address diverse customer needs. These agents possess technical proficiency and excel in nurturing customer relationships while efficiently managing inquiries. Moreover, call centers can access extensive data and sophisticated analytical tools, facilitating customer growth and overall business development through informed insights.

Cost-Efficiency

With expenses beyond salaries, upsizing your workforce will undoubtedly take up a sizable chunk of your financial resources. The preliminary costs alone, such as job advertisements, will already drain your budget. Add the cost of infrastructure, equipment, training programs, and other overhead expenses; you may rack up more liabilities than you expect.

Considering the average cost-per-hire in the U.S. hitting about $4,000, it’s no wonder more than half of executives (57%) seek outsourcing as a cost-reduction strategy. Fortunately, investing in customer service outsourcing can relieve these financial burdens, allowing you to channel your funds to more profitable business initiatives, such as marketing or research and development. 

24/7 Support

Addressing low work morale is critical as more employees (77%) report disengagement. Neglecting this issue comes with a hefty cost, as indicated by the Gallup study, which estimates that low employee engagement can sap 9% of the global GDP ($8.8 trillion). So, if we want our employees to perform at their best, heavy workloads and excessive work hours are off the table.

But how can we ensure that our employees can reach us beyond work hours while ensuring the well-being of our in-house employees? The simple answer is outsourcing.

Customer support outsourcing empowers your company to connect with your customers 24/7, wherever they may be. Additionally, it alleviates the strain of extended work hours on your in-house employees, fostering enhanced customer engagement and reducing employee turnover.

Fuel Your Subscription-Based Revenues With Exceptional Customer Support

➡️ Build My Outsourced Team. Go On! Let’s Do This!

At the core of a successful subscription-based business lies customer loyalty, a pivotal driver for growth in this business model.

SuperStaff, a prominent outsourcing provider, integrates customer engagement strategies into your operations, paving the way for an elevated customer experience and increased customer retention.

We set impeccable standards for our customer service, ensuring that we only deliver quality care and proactive guidance to your clients. With a specialized team, scalability, cost-efficiency, and 24/7 support, we provide exceptional service while allowing your business to focus on growth. Our deep pool of highly-trained customer support agents lets us easily earn customers’ trust and propel your business toward unprecedented success.

Reach out to us and take the first step toward maximizing your subscription-based revenues today!