Strategies for growing B2B subscriptions
So you already have a B2B subscription product – congratulations! But how do you continue to grow your revenues over the medium term? Which new segments could you target? How can you ensure you sustain your renewal rates as market needs change? And how will your subscription product evolve?
Renewd invited me to participate in a panel discussion with other B2B subscription experts from organisations like Agribriefing, FT Specialist and Environment Analyst. In the last few years I have helped several publishers develop first-time subscription propositions. I also chair B2B marketing, which has an established enterprise subscription business. This got me thinking about the challenge of second stage growth.
How to embed the voice of the customer
You may have used in-depth research to develop your initial subscription product proposition, but the needs of business decision-makers keep evolving. How do you ensure that your product keeps pace? For a proposition like Propolis from B2B Marketing, which includes online communities and in person events, we can collate the latest business challenges shared by delegates at our events and incorporate solutions into our content. And use our conferences and round tables for informal product feedback.
For more data-driven subscription products, you may need to schedule a series of 1-1 customer meetings, to explore their world and uncover new needs. Not all users in your customer set will behave alike, so consider developing personas and ensure you interview a representative cross-section. Beware of focussing on product features. Your task is to uncover your customers’ “jobs to be done” and then create products that make their work lives easier.
Engagement analytics can help you spot which features are being used by which segments of your user base. And they are essential to spot those at risk of lapsing. But they only measure activity and cannot identify where users believe value lies. Some senior users may only access content a few times a year, but for them, the value justifies the subscription fee.
A cross-functional product team can then consider the qualitative and quantitative feedback from customers and interpret how the product should evolve.
Evolving a product for new customer groups
The underlying principle for product development is to stay focussed on your customers’ key challenges. Better to solve one problem excellently than offer a “kitchen sink” of features of marginal benefit. Media businesses are particularly prone to chucking in extra content that they have available. This can render a subs proposition unwieldy and make it harder for customers to appreciate the value of the whole package.
Are there adjacent markets that would also value your content? Many publishers have discovered that financial and advisory firms are also willing to pay for content covering a specific industry sector that they serve. You may need to tweak the product emphasis and the marketing but this can unlock a new growth opportunity.
Or can you expand geographically? There are pitfalls here if part of your proposition is based in in-person events. You may need to add virtual or digital content or even launch dedicated in person events in new territories or regions.
Managing a subs product and its customer base as you grow
In a product’s early days you may be grateful for any customers. But as your understanding of what drives value evolves, you may decide that some segments of your customer base will not continue on your journey with you. SMEs or certain segments may be more prone to churn, and not support building long term value for your organisation.
Not all sales are equal. Identify the profile of the customer types that value your content, are engaged with your product, and will grow with your business. Focus your marketing, business development and product development on these segments to maximise your renewal rates and subscription yields. Some organisations pay sales teams a higher commission on securing customers in strategic target segments than in lower priority groups.
Strategies for growing B2B subscription revenues
In summary, start with customer needs, be open to adjacent segments, and tailor your product to suit your strategic segments.
- Embed the voice of the customer through 1-1 conversations as well as analytics
- Exploit any in person events that customers attend to understand their challenges
- Stay alert to emerging segments who may be interested in your content
- Explore opportunities for geographical expansion – but be aware product may need to evolve
- Evaluate which customer segments will provide long term value and develop your product to match their needs
- Reduce your dependence on customer segments who show high churn
Do you have an established B2B subscription product that you want to grow? Feel free to get in touch to discuss your strategies over a real or virtual coffee.
About the author
Carolyn Morgan has acquired, launched, built, and sold specialist media businesses in print, digital and events. She now advises niche consumer and B2B publishers on developing new products and digital revenue streams as a consultant and NED.
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