Differentiate one-off sales and subscription architecture
Leverage composable architecture in subscription commerce with the right approach.
When it comes to finding the right subscription commerce solution, you should not only focus on ones that can meet market and customer expectations quickly. Just as important, the solution should also allow downstream operations for billing and finance to be as seamless as possible. The magnitude of transforming a single purchase into repeat behavior cannot be overstated due to the interconnected, overlapping, and recurring processes across teams to manage long-term customer relationships.
Best-of-breed approach
Composable commerce is what many businesses turn to, given the assuring attributes of the best-of-breed approach, such as being modular, flexible, open, and business-centric.
However, composable commerce was coined for one-off sales. As with all things, while the principle of composability is sound, in practice it’s less straightforward for the subscription business model. Here we walk through the potential challenges and solutions offered to subscription businesses by composable commerce.
Read on to overcome the 4 most common of
composable architecture for subscription businesses
The best-of-breed solutions come with added complexities
How can you minimize the integration complexity of microservices in MACH architecture?
The challenge
If we take the concept of composability, what the architecture purports to offer is the chance to have the best of everything—a unique solution that opens up new avenues for integrating with other systems at the top of their game. However, that integration is far more complex especially when you're operating within a typical structure built on finance-centric ecosystems and APIs. The essential need for system connectivity, diverse pricing models, and customer journeys, makes composability in subscription businesses hard to achieve. The complexity comes through trying to jigsaw elements together that aren’t made to fit with one another because they come from different providers with different values.
The impact
Impact #1
High cost to scale
Impact #2
Time-consuming and insufficient integra-tion
Impact #3
Negative impact on the customer exper-ience
The keylight solution
Use packaged business capabilities to compose your subscription architecture, instead of individual microservices for only commerce requirements. Customer journeys are continuous in the subscription business model. The processes after initial purchases such as billing, subscription changes, new orders, and analytics are equally important to be taken into account for solution design.
Composable commerce's increased ability to customize can be a risk
What does it take for two or more completely different systems to work together?
The challenge
Another benefit of composable commerce is its customizability. Allowing businesses to utilize a wide range of integrations and build a unique solution that fits their use case like a glove. However, knowing what you want is only half the process. The other half is making sure each component selected is applicable for subscriptions and the existing billing system is modern enough to work with a composable approach. The benefit of customizability is often overthrown by another considerable amount of customizations on the billing system and success will get much harder to sustain in the long run.
The impact
Impact #1
Wasted resources on difficult customiza-tions
Impact #2
The delayed launch of new functio-nalities
Impact #3
Compromised customer experience
The keylight solution
The key to fulfill your business requirements is having a clear understanding that standalone composability for commerce is not enough for modern subscription businesses. An end-to-end modern architecture is essential for achieving composable commerce without the downsides of customized solutions.
Too much flexibility creates a lack of unity
Why do businesses experience broken workflows in subscription management?
The challenge
The flexibility of a composable architecture is of no use if nobody can solve the fundamental backend logic for orders created on different customer journeys, recurring invoices, and analytics. In such a fluid structure it is common to have a lack of synchronization across the business and its processes. As a result, each team may develop their own idea of what optimal functionality and user experiences look like. That lack of unity is then exacerbated by integrations that make it hard to orchestrate rules and collect structured data about the customer.
The impact
Impact #1
An inconsistent customer experience
Impact #2
Unsynchronized operations
Impact #3
Slower business growth
The keylight solution
The solution for this problem is a hybrid approach; a composable architecture where each component is supported by a unified data model that solves complex subscription logic upfront. As a result, each element is created to work seamlessly as part of the ecosystem. A central orchestration point is clearly responsible for subscription activities starting from commerce and throughout the customer lifecycle. Whereas multiple vendors might pass the buck, with a unified architecture there’s no debate about which system is responsible for what.
Compromised functionality in monolithic and fully composable systems
How can companies balance composability and efficiency?
The challenge
Businesses tend to find monolithic legacy architecture attractive because they seem comparatively simple to implement as they have one vendor and one flow of work. However, this severely limits their functionality down the line with fewer integrations made possible. At the same time, moving to a completely composable architecture for subscription businesses brings levels of complexity that many businesses are not yet ready to address. If one element does not work, businesses often have to manage the diagnostic process by themselves, especially when dealing with multiple vendors. Furthermore, if an issue is being caused by two elements from two different vendors, it can create a stalemate while deciding which vendor is responsible for the fix.
The impact
Impact #1
Difficult integrations and disconnected processes
Impact #2
Reduced competitive advantage in the market
Impact #3
Inhibited business growth
The keylight solution
keylight offers a unified data model to solve complex subscription logic and uses an API-first as well as a headless approach to provide both frontend and backend applications. They are seamlessly connected with one unifying data model for streamlined subscription operations, and businesses can leverage the modern architecture to achieve commerce composability easily, for whatever the future of business brings.
Resolution #1
Logic
Great connectivity between system processes, especially with composable elements, are imperative to achieve a unified user experience. keylight’s innate approach to connect the right data, personalization, system features, and integrations to a single-core infrastructure increases the durability of a subscription system.
Resolution #2
Event-driven
The entire subscription ecosystem needs to be event-driven. Customer relationships are dynamic, therefore the application network should be as well. Having the right architecture not only supports sustainable subscription revenue, but also allows your business to scale steadily without heavy customization efforts and investment.
Resolution #3
Out-of-the-box
Focus on building great experiences and your own product, not customizing other vendors’ systems to streamline processes in a composable system. keylight’s MACH capabilities are built-in to a unified subscription engine. We enable businesses to engage with customers and maximize the customer lifetime value effortlessly.
Discover the keylight platform
Achieve composability in subscriptions
Our subscription experts can show you how to achieve a composable architecture that supports the vision of your subscription business.