[Stripe Japan Co., Ltd.] Announcing the latest report on subscription business!
*Stripe Japan Co., Ltd.*
Press release: September 17, 2024
**
Announcing the latest report on subscription business!
*~Investigating the status of the rapidly expanding subscription market~* – 73% say they are considering expanding their pay-as-you-go plans in the next 12 months
– Japanese companies are the most dissatisfied with the speed of existing subscription processes out of nine countries
Stripe, an economic infrastructure platform for businesses
is pleased to announce its new Subscription Business Market Trends Report, which examines the current opportunities and challenges in subscription businesses around the world. In this report, 9
We conducted a survey of more than 2,000 leaders of companies developing subscription businesses in countries.
The subscription market continues on a healthy growth trajectory, and in Japan, the domestic subscription market will reach 1 in 2025. It is predicted* to exceed trillion yen. Additionally, subscriptions are being used in a variety of fields, and as a result, diverse needs have arisen. Companies operating subscription businesses that responded to this survey
73% in the future 12
We have learned that the company is considering expanding its pay-as-you-go plan offering in the coming months and plans to trial a more flexible subscription plan. 69%
of business leaders are looking for more flexible pricing models (pay-as-you-go plans and tiered pricing)
However, existing billing systems cannot accommodate these complex pricing models and lack the flexibility to support pricing strategies.
In addition, as many subscription businesses are being developed, nearly half (49%) of companies plan to acquire new customers in the future.
We learned that they are considering investing in global expansion within 2020. However, 52% of business leaders doubt whether their existing billing system can effectively support their international growth strategy.
of businesses are dissatisfied with the speed of the subscription process. In Japan alone, it was 60%, which was the subject of the survey9
We found that consumers in the following countries** are most dissatisfied with the speed of the subscription process. 69% of businesses see billing systems as hindering growth
of companies plan to reconsider their billing software as part of their global expansion plans, including 68% in Japan.
of companies are considering implementing new billing software.
In addition, this report describes the “leaky bucket”
” This also points out that unintentional cancellation remains a persistent problem for subscription businesses. Unintentional cancellation occurs when a user unintentionally stops using a service or subscription, for example due to unpaid credit card payment. past 40% of companies experienced an increase in unintentional
cancellations in the past year
However, many lacked comprehensive data to quantitatively visualize lost revenue. 43% of companies
The amount of opportunity loss due to unintentional cancellations and payment failures is unknown, and 79% are retry attempts to reduce the number of payment refusals.
They admit that they do not have policies or other measures in place.
Daniel Heffernan, CEO of Stripe Japan Co., Ltd., said:
“Subscription businesses are an effective way to maximize revenue and increase customer lifetime value at a lower cost than acquiring new customers. There is a shift to billing based on volume. The same trend can be seen in Japan. Implementing pay-as-you-go is complex and requires capturing usage data in real time, linking it to prices and customer charges, and connecting it to all other systems. To reduce that burden, Stripe
Now, pay as you go with Stripe Billing
In response to this, we have made it possible to obtain all kinds of usage data and conduct business analysis. ”
To help businesses of all sizes accelerate revenue growth, reduce churn, and easily grow globally, Stripe launched Stripe in 2018. Billing It has been.
Nikkei Shimbun Masao Saga, Deputy General Manager of Platform Division, said: “Stripe has always had a strong presence in the engineering community, and I have a strong personal interest in Stripe.
Our services are highly scalable and allow us to offer flexible billing plans. ”
Fox Sports Mexico provides sports programming
Israel Gomez, Vice President of Technology and Operations at
He said:
“Stripe Billing gave us the tools we needed to provide a more convenient and easier subscription experience.
’s superior customer experience has significantly increased customer retention and subscription revenue. ”
said Nadia Ali, Chief Financial Officer (CFO) of AI image generation service Midjourney.
“Stripe’s Smart Retries is extremely effective in dealing with involuntary cancellations.
, which uses machine learning to retry credit card payments at the optimal time. This is extremely important to us as a subscription business. ”
Click here for details on this report.
* https://stripe.com/jp/lp/trends-insights-subscription-leaders*
[Survey overview]
・Survey method: Internet questionnaire
・Survey implementation agency: Milltown Partners
・**Target areas: Australia, Canada, France, Germany, Ireland, Japan, Singapore, UK, USA
・Target: N=2021 business leaders who earn revenue from subscription business (N=212 in Japan)
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*About Stripe*
Stripe is a company that builds financial infrastructure for businesses. Millions of companies, from startups to global
enterprises, use Stripe.
Our payment platform not only processes payments, but also programs funds in real-time to grow revenue and accelerate new business development. Headquartered in San Francisco and Dublin
At Stripe, our mission is to grow the GDP of the internet.
For more information, please visit https://stripe.com/jp.