¿How to manage plan updates and cancellations in your subscription business?

Learn how to change plans and cancel subscriptions in a few clicks, taking subscription management in SaaS and e-learning companies to the next level.
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Managing different subscription plans or upgrade options is part of the ABCs in a subscription business. However, plan changes can be complex in terms of technology or operations, in order to create the subscription experience that your customers need.

Therefore, being able to update customer plans in a single click (without the need of unsubscribing), automatically charging proportional fees, or instantly canceling memberships are challenges that every SaaS or e-learning business – two well-known use cases – should attend to.

Your customers, in search of the plan that best fits their needs, may often require an update (upgrading or downgrading), so the simplicity and flexibility of this "transition" will improve their experience and increase their loyalty.

So, how can you handle different plans and manage subscription updates or cancellations efficiently?

Spoiler alert: Rebill provides you with all the tools to create the best subscription experience…

Why should you offer upgrade options?

Beyond the revenue predictability and customer retention rate that a subscription model itself provides, offering more than one plan guarantees some additional advantages:

  • More customization, with subscription plans tailored to different needs and budgets, allowing you to reach a larger number of users and potential customers.
  • Higher user expectations: the customer will usually be "seduced" by better options and the possibility of accessing more benefits (more products, to continue using the service after a free trial, etc.).

In addition, you will be able to segment your subscribers more accurately (by budget, needs, etc.) and, if a user needs a plan update, you can easily detect it to offer an upgrade.

How to take advantage of all these benefits with Rebill?

3 steps to create flexible subscription plans

Rebill is a tool to simplify the payment and subscription billing management in your business. Learn how to create your plans and prices, and also update your customer subscriptions in just a few clicks.

1. Create your products and prices

First and foremost, you and your business must answer: What is your best pricing model? How many subscription plans should you offer? Will you offer a free initial plan to then "seduce" customers with paid memberships and greater benefits?

For all these cases, Rebill brings you the ideal solution, and the first step is always the same: create a new product and, within it, different subscription options with the prices you want.

If you want the initial plan to be "freemium", you can establish that this first subproduct (called "price" on Rebill platform) is free.

2. Group 2 or more products and create upgrade options

With your pricing strategy defined and your products and prices already created in Rebill, it's time to group those products that you want to set up as "subscription plans". This step is extremely important, as the products within the same group will be "connected" to each other.

This means that, if you have a group with a "basic", "premium" and a "signature" plan, it will be easy to move a customer from one plan to another (from "basic" to "premium", for example), without being necessary to unsubscribe previously.

This step can make a real difference for your users, by providing them with an agile and frictionless subscription experience.

The result: an instant solution for your customers, which will directly impact a higher retention rate and customer loyalty.

3. Change subscription plans easily and efficiently

You are now able to offer your users a plan upgrade, cause doing so only requires a couple of clicks! This is a key factor for any multi-plan subscription business, where revenue and growth will be boosted if a greater number of recurring customers are subscribed to the higher plans.

In Rebill platform, you can find this option in the "subscriptions" section, where you will see the whole list of subscribers and you only have to click on "change plan" to make this update (be it a plan upgrade or downgrade).

The biggest challenge, in this case, is the proportional fee to be charged to your customers when changing plans: what happens with the credit balance corresponding to the period using the previous plan?

Continue reading to find out the answer…

How to charge proportional costs to your customers when updating plans?

Rebill also solves the apportionments or proportional costs you need to charge in every plan update. This process is fully automatic and, before an update is completed, you will view the calculation: what is the fee to be charged to your subscribers considering the cost of the new plan and the difference?

Instantly after the plan change is confirmed, the apportionment will be charged automatically, so your customer will be "up to date" and ready to start enjoying their new plan.

From the second payment onwards, the total cost of the new plan will be charged on the date you set.

How to cancel subscriptions?

Although the "happy ending" for any subscription business is more customers updating their plans, your business must also be prepared for the less desired outcome: subscription cancellation. However, if you solve this request quickly and efficiently, that customer may return in the future.

You can do so with Rebill by accessing the "customers" section, where you can freely modify your user’s recurring subscriptions, and among these modifications, you can switch a subscription from "active" to "paused" or "canceled".

The good news for your business: if your customer changes their mind and wants to return, you can reactivate the subscription at any time!

Choosing a successful pricing model is as important as knowing how to manage it: create flexible subscription plans (easy to modify) and you will see the difference in your business revenue and growth, with more stable and loyal customers over time.

Visit our website to learn more about our products and solutions or directly book a Demo with us.

Nicolas Scannone
Head of Content at Rebill
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