AI has unleashed new opportunities for MSPs to improve subscription management and the customer experience. AI empowers organizations to personalize products and services for business customers like never before.
Companies that use AI for predictive analytics can refine product recommendations and align with broader market trends by driving personalized experiences at scale. As the subscription economy expands, AI’s role in enhancing customer experiences will be a key factor in sustaining this growth.
For example, MSPs can use AI to generate insights to determine the most suitable options for specific clients. This helps in developing digital offerings based on customer preferences and spending patterns. It allows MSPs to focus on a more targeted approach to sales that aligns with each customer’s unique profile.
Companies that effectively leverage AI to personalize and optimize their offerings will be better positioned to capture market share and capitalize on emerging opportunities.
More than 80% of B2B organizations consider the digital customer experience as very important. They put a strong emphasis on using generative AI (GenAI) to improve these experiences.
Enhancing Customer Retention
AI and GenAI offer powerful tools in the subscription economy by providing early warning signs of customer dissatisfaction. For example, an MSP’s AI system could flag a particular client who previously logged in daily but whose usage dropped off over the past month. The AI can also detect a drop in the frequency of support ticket submissions and a decrease in engagement with new product updates.
By identifying subtle changes in customer behavior, AI enables proactive interventions that can prevent churn while enhancing customer loyalty. This ability to anticipate and address issues before they escalate gives companies a competitive edge.
Beyond Personalization
The global subscription market is projected to expand by 68%, with the total transaction value expected to hit $996 billion by 2028.
Mike Jennett
By offering insights and recommendations for structuring subscription models, AI can guide organizations on the best types of subscriptions to offer. This can help businesses determine pricing strategies, timelines, and the specific products that should be included in a subscription plan.
With software as a service (SaaS), AI can go beyond routine automation to preemptively discover possible issues. This function provides predictive maintenance of software environments and can anticipate system issues before they impact users. It empowers system operators with a new tool to boost service reliability and customer satisfaction.
Safeguarding Privacy
Personal data collected by AI helps with customization. However, it also increases the risk of exposing customer information to unauthorized use.
Data governance is an essential component for MSPs to consider when safeguarding customer information. Poor data quality can negatively impact AI performance.
Implementing robust security protocols — such as encryption, access controls, and regular audits — is needed to protect customer data. It’s also important to ensure that customer information used within AI systems is anonymized. This means stripping any data that could directly identify a customer or reveal sensitive proprietary details.
AI can also help MSPs navigate the evolving landscape of data privacy regulations, ensuring compliance with laws like General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). These impose strict requirements on how customer data is collected, stored and processed.
Managing AI Subscriptions Is a Balancing Act
AI can significantly enhance subscription management by delivering personalized experiences and enhanced operational efficiency. By leveraging AI’s predictive analytics, MSPs can make data-driven, customized decisions to clients. They also can gain a competitive edge.
Also, be sure to prioritize robust data governance and security measures to protect customer privacy and comply with evolving regulations. Striking a balance between maximizing the benefits of AI and using the technology responsibly is pivotal in today’s subscription economy.
Mike Jennett, director of CloudBlue platform strategy, is an accomplished business and technology executive. With a deep focus on product development and go-to-market strategy, he plays a pivotal role driving strategic growth and market expansion.
Featured image: iStock
