Subscription Services Can Revamp Business But Challenge Contact Centers

The vendor focuses on omnichannel subscription services and powers more than 75 brands. Bigcommerce provides services from Web site design and secure shopping carts to experienced marketing gurus who help wedge both start-ups and established corporations into new subscription markets. The Australian-based company raised $75 million in funding and now has a client base of more than 50,000 merchants in more than 130 countries.

Cost becomes a consideration as firms put new front-end and back-end systems in place. These solutions usually are offered as on-premises or cloud systems. They often include fees ranging from thousands to millions of dollars (either set upfront fees or monthly costs) as well as usage fees (usually 1 percent to 3 percent) for each transaction. So enterprises need to be clear about the costs as they implement subscription services.

Interest in subscription systems is rising. The traditional method of selling products is giving way to a rental model in new markets, such as consumer goods, clothing, and transportation. While subscription services have the potential to empower businesses and consumers, the infrastructure needed to support them is in a nascent stage of development. Consequently, businesses adopting this approach must be willing to take on more development and support work up front than they have when marketing established goods and services. If they do, they may be handsomely rewarded for their efforts.

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Paul Korzeniowski is a freelance writer who specializes in technology issues. He has been covering CRM issues for more than a decade. He is based in Sudbury, MA, and can be reached at paulkorzen@aol.com.

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