Subscription model-based businesses can face spikes in demand throughout the year. While many companies experience a surge in sales, this time of year also brings unique challenges for order management. Whether you are running a meal kit service, software subscription, or eCommerce membership model, managing customer expectations while scaling operations can be difficult. 

It only takes one missed shipment, wrong order, or billing issue that can lead to frustration, cancellations, and negative reviews, ultimately harming your business. Among the most important issues to keep an eye on are: 

• Increased Volume: Subscription models often experience a significant increase in both new subscribers and recurring orders. This can be challenging to handle and maintain normal operational standards unless you have scalable systems in place. 

• Inventory Management: In the case of physical product subscriptions, it can lead to a shortage of some inventories, delayed procurement, or overstocking of unwanted products. Ensuring that you have the right balance of inventory is crucial to avoiding disappointing customers and losing revenue. 

• Delivery Delays: Shipping companies can get overloaded, leading to delayed deliveries. Subscription businesses must anticipate potential carrier delays and adjust their timelines or communicate these changes effectively to customers. 

• Gift Subscriptions: The holiday season often brings an increase in gift subscriptions, which come with specific expectations for delivery time, custom messages, and recipient management. Handling these complex orders without error is the key to better customer satisfaction. 

Best Practices for Subscription Models

To meet the challenges of the holiday season, subscription model-based businesses need to scale their operations efficiently. Here are some strategies to consider: 

• Automate Where Possible: Automation is key to managing an increased workload. Invest in order management systems (OMS) that automatically process renewals, update stock, and track shipping. Automating inventory management helps avoid shortages or overstock issues, while automated billing processes reduce the likelihood of payment errors. 

• Flexible Fulfillment Strategies: Leverage a mix of fulfillment options such as partnering with logistics providers or using third-party warehouses. Having diverse fulfillment centers can help reduce delivery times and avoid bottlenecks in specific regions, which is especially useful during peak shipping periods. 

• Update Shipping and Return Policies: Be transparent about shipping times, especially if there are known delays from courier partners. Ensure that return policies are clear, flexible, and accessible for customers during the holiday season, particularly for gift subscriptions. 

• Offer Incentives for Early Orders: Encourage your customers to place holiday orders early by running special promotions, free shipping, or other perks. This can help spread demand and relieve the last-minute rush, allowing your fulfillment operations to run more smoothly. 

Maintaining Customer Satisfaction  

Keeping your customers happy is important, especially during high-stress periods. Here are some best practices to ensure your customers stay happy: 

• Clear and Regular Communication: Keeping customers informed is essential. Notify them of any expected shipping delays, order status updates, and promotional periods by way of email or SMS. Transparency builds trust and reduces frustration. 

• Personalized Communication: Offering personalized messaging can add a special touch. Tailor communication based on the customer’s order history, subscription length, or preferences. 

• Gifting Experience: Many subscriptions are gifted during the holidays. Offer personalized notes, gift-wrapping options, and a clear explanation of how recipients can activate their subscriptions. Proactive communication is key to guarantee that orders are delivered on time. 

• Resolve Issues Quickly: With the increased volume during peak periods, mistakes may happen. Proactively address any issues by offering quick resolutions, whether through refunds, replacements, or credits for future services. Customers are more forgiving when they see prompt and empathetic action. 

Want to learn more about smart order management? Watch our breakdown! Or speak to an expert!