Subscriptions form the backbone of many SaaS business’ revenue streams. However, as important and profitable as they can be, the implementation of subscriptions is a complex process. There are multiple factors to consider, such as pricing, licensing, discounts and incentives for potential customers. With this in mind, FastSpring is publishing a three-part blog series with the aim of highlighting the benefits, challenges, and ways to implement a subscription model.
The risks and rewards of subscriber retention
In our previous blog post, we discussed the market trends towards and the benefits of a subscription model for SaaS companies. In today’s blog, we’ll be focusing on the challenges your business might face in implementing a subscription model. Specifically, we’ll take a look at discounts and free trials, two of the ways to increase incentive to subscribe.