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Transform D2C Subscription customer care frustration into retention using Hi5

Written by Sonia Zieleniewska | Apr 2, 2024 9:05:18 AM

Does providing customer support feel like a liability or operational burden for your business? If so, it’s time to rethink its role. D2C customer support is more than just handling user inquiries—it’s a strategic asset that enhances the overall subscriber experience, drives product development, and strengthens market competitiveness for your D2C subscription business.

This blog explores how prioritizing customer service can transform your D2C subscription business. We also highlight how Hi5, a modern SaaS solution powered by AI-driven automation, simplifies support complexities. Use it to turn customer support into a competitive advantage for your D2C platform!

 

Why Innovative and Effective Support is Critical for Your D2C Business

 

Customer support is a crucial function for D2C subscription businesses, ensuring seamless access to products or services while resolving user inquiries. However, its role extends beyond just issue resolution—it is a strategic imperative.

With an increasingly competitive market offering numerous subscription options, poor customer support can quickly lead to subscriber churn.

Here’s why customer support plays a key role in D2C subscription success:

  • Efficient support influences user satisfaction with the service, which impacts loyalty. 

While using D2C subscription platforms, users often face issues such as technical glitches or problems with free trial coupons, prompting them to seek support. In these moments, quick and effective responses not only resolve their concerns but also enhance their overall experience and perception of the service. This, in turn, increases the likelihood of repeat subscriptions—an essential factor for D2C success. On the other hand, poor support can leave a negative impression, weaken customer loyalty, and heighten the risk of subscriber churn.

80% of customers feel the company's experience is as crucial as its products or services.

83% of customers agree they feel more loyal to brands that respond and resolve their complaints quickly

65% of customers said they have changed to a different brand because of a poor experience.

  • Support data presents a goldmine of data to navigate product improvements. 

Customer support is more than just resolving user inquiries—it’s a critical driver of loyalty, retention, and business growth in the D2C subscription space. By analyzing customer support interactions, businesses can gain valuable insights into common pain points, identify areas for improvement, and enhance the overall subscriber experience.

72% of companies believe they can use analytics reports to improve the customer experience.

80% of companies use customer satisfaction scores to analyze and improve customer experience. 

  • Raises marketing competitiveness 

Providing excellent support raises market competitiveness by building a unique advantage against competition. When customers are happy, recommendations are heavily impacted. 

Consumers who rate a company’s service as “good” are 38% more likely to recommend that company. 

For 86% of consumers, good customer service turns one-time clients into long-term brand champions. 

 

Bottom Line: Excellent support impacts user satisfaction and operational efficiency for D2C subscription businesses. This enhances the subscriber experience and results in a boost in subscriber loyalty and retention. Retained subscribers mean reduced churn. This is especially important for a subscription-based business like  D2C subscriptions, where the business models demand repeat customers to ensure business continuity and growth. 

 

Unsurprisingly, Bain & Company estimates a potential to easily grow revenues between 4% and 8% above the market when prioritizing better customer service experiences. 

 

Good to know: How RED+ clocked in 504% annual MRR growth.

A part of their strategy was delivering excellent experiences at every touch point, including top-notch support. They kept a close tab on customer support analytics. Some support-related aspects they regularly tracked included why customers reached out and the number of open tickets. These flagged issues required more attention and couldn't be solved immediately. This worked brilliantly for them, and currently, their service inquiry rate (complained rate) is only 0.65%, which is quite impressive as the industry benchmark stands at around 3%.

 

Discover the free guide to D2C customer care

 

What are the unique support needs of D2C subscription businesses?

When it comes to a D2C subscription service, customers often face various frustration points, such as technical issues, billing problems, and content-related concerns. As a subscription provider, you need to establish a support infrastructure that specifically addresses these challenges. Some key needs include:

  • Round-the-clock availability: Since subscription services are accessible at any time, customers expect support to be available 24/7. Limited support hours that don’t align with service availability can lead to customer frustration.

  • Multilingual support: D2C subscribers can come from anywhere around the world. It’s crucial to ensure that support is available in the local languages of the customers, making it easier for them to resolve issues and get the help they need.

  • Multi-device support: D2C users may access their subscriptions on a variety of devices, from mobile phones to desktops. Providing support that works seamlessly across all these devices is essential for a smooth user experience.

  • Urgency in resolution: Long wait times, repetitive troubleshooting steps, or lack of personalized attention can leave customers feeling unheard and frustrated. Ensuring quick and efficient resolution is key to maintaining customer satisfaction.

  • Well-trained personnel: Users may encounter a variety of issues, from technical glitches to billing errors. Your customer service team must be well-trained with the knowledge and skills to resolve issues efficiently, providing users with quick, accurate solutions.

Enter Hi5: The Game-Changing Customer Support System for D2C Subscription Businesses

Hi5 is a comprehensive customer support solution tailored for D2C platforms and their subscribers. Designed specifically for the D2C industry, it combines advanced technology and industry expertise to deliver 24/7 availabilityand the ability to serve a diverse, global audience with different cultural needs. By leveraging Hi5, you can outsource effective, responsive customer care to market experts and focus on growing your business with peace of mind.

Benefits for D2C Subscription Businesses Using Hi5:

  • 80% self-serving rate

  • 40% reduction in contact rate

  • 76% chatbot deflection rate

  • 50% cost reduction

  • 85% increase in customer satisfaction

  • Savings of thousands of hours

Hi5 is built to scale with your business and is SaaS-based, allowing for quick and seamless deployment with predefined flows and help center structures.

 

Key Features of Hi5 That Make It the Best Support Solution for D2C Businesses

  • Branded Help Center: A user-friendly hub featuring FAQs and video tutorials, enabling a 78% self-resolution rate. This saves thousands of support tickets and reduces costs (the industry benchmark cost for tickets is around 15 USD).

  • Advanced Chatbot Capabilities: Hi5’s chatbot can handle a wide range of inquiries—from account issues to content access—backed by a comprehensive knowledge base developed from extensive interactions with major D2C providers.

  • Expert D2C Support Team: Hi5’s team achieves an 80% one-touch resolution rate, delivering fast and efficient solutions, supported by years of industry expertise and assistance available in 29 languages.

  • Real-Time Analytics: Hi5 provides businesses with a 360° view of customer interactions, enabling data-driven decisions. This includes insights into transaction history, contact reasons, and more. The platform also offers an automated inquiry funnel with smart reporting and real-time patterns, allowing businesses to quickly resolve emerging issues.

  • Efficient Refund and Chargeback Management: Hi5 integrates with payment providers to minimize chargebacks, ensuring smooth financial operations for D2C businesses.

Want to transform your customer support into a retention machine?