Recently, CardNotPresent published findings from a study that show that global, cross-border e-commerce will triple from $300 billion in 2015 to $900 billion in 2020, accounting for about 22% of all e-commerce sales. The study, conducted by international shipper DHL, also reported that targeting international audiences can increase an online retailer's sales by 10-15%.

The New Zealand economy is one of the fastest growing in the world and is notable in a couple of ways. For example, according to the Ease of Doing Business Index for 2016, New Zealand ranks second overall out of 185 countries. The country has sizeable manufacturing and service sectors, and a highly efficient agricultural sector which accounts for approximately one-third of real expenditure GDP. Their economy depends heavily on international trade.

For any business, setting a price for what they sell is a key piece of the revenue and profit puzzle. Subscription businesses have the added task of determining not just price points but the billing model they will use. For example, many subscription businesses have a fixed recurring model (same price every time). SaaS companies have a slightly more complex model which requires that they charge for each user accessing the service, often at a prorated rate. And some businesses—usually high-volume transactional services—will find that a usage-based model is the most appropriate and beneficial.

Gift Subscription is not just a holiday buzzword for subscription businesses, it’s a smart customer acquisition strategy. Using the psychology of ‘social proof,’ a gift subscription given between friends or loved ones puts the gifter’s stamp of approval on the product or service, making the recipient more likely to use the gift and convert to a paying customer.

As subscription based-businesses continue to evolve, they’re seeking greater control and flexibility in terms of the plans they are able to offer their subscribers and how they’re priced. A one-size-fits-all approach rarely works in any business, and subscription businesses are no exception. Customers want to know they’re getting value, and merchants want to be better able to set prices that reflect the value of their product or service. Doing this well ultimately leads to increased customer satisfaction and reduced churn.

In 1965, American families began clipping coupons en masse and marketers realized how coupons convert prospects, upsell customers, and encourage brand loyalty. In 1990, the internet begat the era of online coupons, making it easier than ever for subscription-based and other businesses to reach an online audiences with their promotions.

In our first post in this series, we discussed how important it is for marketers to know their customers, in particular when designing campaigns and incentives to promote their business and bring in new subscribers. In today’s blog, we present ideas for the specific kinds of promotional campaigns merchants create to achieve different goals and how to use Recurly’s coupon functionality to create the right incentive.

There’s a rule of thumb when it comes to marketing: know your audience. This is a great rule in general, and it’s an essential rule for merchants designing a discount campaign to promote their subscription business.

Know your audience. Merchants need to know how their customers interact with their product or service. Is it an essential in the customer’s life or business, a necessary commodity, or more of a fun indulgence? Are customers highly loyal and highly engaged, for example, posting unboxing videos to YouTube when their box-of-the-month arrives? Or is the product or service providing a convenience that customers appreciate and will pay for?

The joy of taxes! Not only do you have to levy them, you have to report them.  Merchants will be required to register for VAT in all EU countries where they sell a digital service. With VAT, you’ll thankfully have registration filing options, but you may want to review your product pricing strategy before choosing.  

We’ve talked about the new EU VAT rate changes for digital services, which will now be based on the purchasing customer’s country.  Where things become more complex for merchants is in the area of compliance.