What Challenges Do Businesses Face with Online Subscriptions?
While the subscription model offers numerous advantages, it also presents challenges. One significant issue is churn rate, which refers to the percentage of subscribers who discontinue their subscriptions. High churn rates can undermine the stability of recurring revenue.
Additionally, businesses must invest in robust subscription management systems to handle billing, renewals, and customer support efficiently. Ensuring data security and maintaining customer trust are also critical, especially as privacy regulations become more stringent.