Authored by: Kevin Cancilla

The video game industry is ripe for subscription-fueled growth. Games that are monetized through in-game purchases and single-disc sales (a surprisingly large business but rapidly becoming a thing of the past) are both poised to be replaced by gaming platforms that offer a large selection of games for a relatively low, recurring fee. Gamers may have their favorite titles, but they also crave variety which they can get from the gaming platforms that offer tens or even hundreds of games.

Following this trend, and as massive names such as Google and Apple enter the mix alongside…

Authored by: Kevin Cancilla

We live in a mobile world. Desktop applications take a back seat to mobile-focused software. More than three-quarters of Americans (77%) own a smartphone, and for many of them, mobile devices are attached to their hips.

Consumers favor accessibility, simplicity and speed above all else, and mobile delivers that in droves.

For many people, mobile devices are their primary connection to the internet. Two-thirds of consumers consider their smartphones to be the most important device they have to access the internet. And for many it is their preferred way to access accounts and services.

Conversely, only…

Authored by: Michael Isaacs

Customer cancellations are a fact of life for subscription businesses. No matter how good your services are or how competitively you price them, you will have to contend with customer churn.

Cancellations don’t need to be entirely negative experiences for subscription-based businesses, however. Every instance of customer churn can be a learning experience, an opportunity to better understand your customers and what drives formerly satisfied users to cancel their subscriptions. Those insights can help you improve your products and services; optimize your business; and predict, prevent and reduce customer churn in the future.

Here are six…

Authored by: Kevin Cancilla

The subscription business model has become the new normal. Companies of all types — from disruptive startups to traditional businesses — have adopted subscriptions for the promise of open-ended recurring revenue. But how can those subscription businesses measure performance? The old metrics for financial reporting that worked before might not have the same usefulness. Here are the top metrics every subscription business needs to track.

1. Monthly Recurring Revenue (MRR)

Perhaps the most essential metric for subscription businesses is MRR: a depiction of the dependable revenue the company can bank on month to month.

The equation is relatively simple: Take the…

Authored by: Vindicia Team Blogs

Payment Services Directive 2 (PSD2) is a new regulation that applies to subscription businesses located or acting in the European Union (EU). Critical information with respect to compliance with PSD2 can be found at the European Payment Council’s site regarding PSD2.

What is PSD2?

PSD2 takes effect on September 14, 2019. This regulation impacts subscription businesses whose acquirer is in the EU or acquirer has EU license and which are transacting online with customers’ credit card whose issuer is also in the EU.

PSD2 applies to all online transactions, including payments made via credit cards and alternative payment…

Authored by: Kevin Cancilla

Subscription businesses operating across state lines must be highly attuned to the various legal restrictions regarding the industry. Subscription business models have grown increasingly common in the past few years; the subscription e-commerce market alone increased more than 100 percent between 2013 and 2018, per McKinsey & Company.

Lawmakers are enacting regulations to ensure that subscription businesses do not take advantage of their customers. Many of these regulations are being legislated at the state level, complicating compliance for businesses selling across state borders. …

Authored by: Uri Gurevitz

A subscription-based billing model is an enticing prospect for new enterprises and established organizations alike. However, adopting or switching to a subscription-based model comes with some uncertainty and unease due to unfamiliarity with the business model and what needs to be done to succeed.

Vindicia’s Customer Success teams assuage these fears both for new subscription businesses and for established organizations trying out or transitioning to a recurring revenue-based model. Vindicia’s Customer Success teams guide merchants on all aspects of deploying and optimizing subscriptions to promote profitability.

Why Organizations Fear Billing Change

Just consider all of the different ways in which a…

Authored by: Kevin Cancilla

A positive user experience is essential to growth and success for any subscription-based company. Consumers have many options at their fingertips, and they aren’t going to look solely at the quality of the product or service — they’ll also look closely at the customer experience. One bad experience, in turn, could prove to be the catalyst that sours an otherwise satisfied, paying customer and takes revenue off the table.

Of course, subscription-based companies do all they can to avoid such missteps by designing highly intuitive interfaces for streaming platforms, offering expedited shipping, saving purchase history for…