Current businesses, their systems and processes are today struggling with subscription business model that provides more flexible and diversified options to the customer. In terms of billing, there are multiple challenges that businesses are facing today. They include, but are not limited to:
- Software as a Service (SaaS) subscription businesses are struggling to scale today because their billing systems are still integrated with legacy invoice processing systems.
- Many companies now use cloud-based solutions, and these traditional, manual processes make it difficult for Cloud Service Providers (CSPs) that rely on a recurring revenue model.
- CSPs are having different regulations from when they were earlier selling individual licenses.
- Many CSPs still have their old ways of doing things which makes it difficult when trying out new techniques or ideas on top of an already established business plan using outdated technologies.
Cloud subscription billing
Subscriptions are a win-win for both consumers and merchants alike. Businesses can get long-term revenue, while consumers enjoy hassle-free billing on an ongoing basis. Recurring payments keep customers connected with businesses that offer subscriptions. Subscription billing is a more seamless way of managing your finances. It allows service providers to focus more on delivering valuable products and services while lessening the burden of managing broken payment systems!
Importance of cloud billing automation
The cloud is the wave of today’s business world. With the ever-increasing need for data storage and processing, businesses are turning towards clouds which is cost-effective and enables business scalability. Providers also benefit from recurring revenue streams due in large part and can focus on providing better and tailored customer service. With enhanced features like billing automation software, SaaS companies make it easier for customers to pay for the services.
Billing automation system compared to manual billing
Growing businesses soon find themselves in the unenviable position of trying to manage their billing needs manually. As they grow, it becomes harder and more time-consuming for them to do everything – from invoicing customers accurately, to recognizing revenue based on different pricing plans or subscription options offered by the company – and this is where an automated, comprehensive recurring billing platform comes into play!
Businesses that offer subscription-based services should consider using a recurring billing platform to eliminate the risk of manual errors. This will not only help streamline the invoicing process but also provide valuable business insights for entrepreneurs or company owners to grow their profits in this competitive market!
Let us understand how billing automation software can overcome the challenges posed by the manual billing system.
|Time and effort
|Lose a lot of time manually determining subscription plans and deploying the bill.
|Saves time and effort and acts as a self-serve system for billing requirements for customers.
|Errors and accuracy
|The risk of human errors and inaccuracies is more due to repeated manual activities.
|Only one-time entry of details is required for one customer and information will be accurate during each billing cycle.
|Insights and reporting
|Does not provide useful business insights important for SaaS and subscription-based businesses.
|Significant business information can be obtained easily for monitoring and growing business.
|Difficult for handling and tracking partial payments.
|Invoicing and payment collections are made easy and get notified about due payments.
|Does not contribute to building and improving customer relationships.
|Helps understand client behaviour and identify risks. Strengthens relationship with customers.
Benefits of subscription billing automation
- Reduced billing errors: Automation enables to drive and grow businesses with confidence. You’ll never have to worry about human error or forgetting a customer again, as you can rely on automation for accurate billing! Billing Automation Process means that any time information is updated, like subscription plan types, it will always be correct every single time someone gets billed regardless of how many customers there are in total serving them at any given moment.
- Simplified payments: Complex payments processes are time-consuming and a burden on businesses. A billing automation system can help you minimize the work customers will have to do, as well as identify those who haven’t paid their bills yet so that it’s easy for you to focus attention where needed! Providers can easily edit or modify subscription plans and create invoices hassle-free.
- Choose from multiple options: Automated billing systems give your customers the option to choose from several payment plans enabling you to cater to what they need. Hence, service providers will be able to build good customer relations and have customer retention, which is an important factor considering the recurring revenue business model.
- Business intelligence and scalability: Subscription billing is a great way for businesses to have more stable revenue. With it, the ability to scale and plan are both possible because you know what you’re going to get from month to month. The reports and foresight that come with automated subscription billing provide a more regular stream of improvements to products and services, eventually resulting in higher ROI.
RackNap for automated subscription billing
The answer to the question that we asked in the title – ‘Is it too expensive to manage your cloud subscription billing’ is NO, but only if you have the right tool.
You can simply your cloud subscriptions and optimize your revenues with RackNap. RackNap helps you automate your subscription billing with its next-gen automation capabilities.
You can put an end to your manual subscription billing woes by adopting the automated subscription billing platform of RackNap and scale your business and grow revenue without worrying about the complexities of subscription billing.
How RackNap will help service providers
- Multiple billing options.
- Auto-renewal, auto-suspension, and auto-termination of subscriptions.
- Customizable billing periods.
- Tiered subscription pricing management.
- Billing intelligence to manage upcoming payments, pending renewals, etc.
- Be an edge above competitors with one-click order placement and provisioning.
- Single dashboard support for empowering customers to manage their subscriptions themselves.
RackNap offers a unified automated billing platform for CSPs, web hosting providers, data centers, telcos, and subscription service providers.
Handling large volumes of recurring customers through a manual billing process can be tedious, time-consuming, and might require extra resources. Manual billing is also susceptible to inaccuracies which makes it not quite recommended for businesses handling lots of data. With subscription-based services, it is impossible to carry out processes like billing, invoicing, payments, and revenue recognition manually.
Book a demo to know how RackNap’s automated billing platform will take care of your subscription billing requirements while you can focus on delivering quality products to the customers.
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