Launching a new software startup in an aggressive market can be a real challenge. If you can execute it correctly, the result can be rewarding. While building SaaS, you have to pay attention to the appropriate allocation of development and other resources.
It is a common practice to focus on the development of a product, but once you scale your business and build up a customer base, you need to have a way to efficiently monetize your efforts. The billing system is a necessity for agile monetization of subscription revenues.Subscription billing and the capacity to execute it at scale is essential for your SaaS strategy. The ability to request payments on a recurring basis, make price adjustments, track revenue accurately, prevent revenue leaks–makes for a better customer experience while allowing you to maximize revenues. To sell subscriptions to your clients, you must have:
- A backend procedure for successful payment processing
- Retain payment information
- Retry failed and declined credit cards
- Send timely notifications about upcoming payments, card expiry, card failure etc.
- Accurately track earned vs. deferred revenues
- Easy subscription plan upgrade and downgrade mechanisms
Without an involved development cycle to develop such features, you may be stuck with a painful procedure of sending manual invoices, on-boarding process and accessing customers manually.
Here is where automated billing processes will help scaleypour software or SaaS business.
Faster Path to Money
Business is all about speed and quality. Whether you are dealing with business clients or individual customers, every buyer expects easy access to online checkout, ordering, and frictionless payments. Automated billing can be an excellent addition to payment options. Sales partners and suppliers need quick payments instead of waiting for money.
An automatic billing platform saves your time on sending out manual invoices and collecting payments. Automatic tasks allow you to save your time and resources. With an automated portal, you can give freedom to customers to change their preferences, make payments and see invoices.
Decrease Errors and Enhance Efficiency
Manual billing increases the risks of human errors and may lead to different imprecisions and mistakes in invoices. Consistent errors can decrease the satisfaction of customers. Through automated billing, you can offer subscription plans to customers. A system allows you to add the latest subscriptions to meet the needs of customers. Automation can increase your confidence to scale and drive your business.
Understand Subscription Metrics
Every business owner needs complete information on the market to evaluate the health of his or her business. A software company needs comprehensive reports to monitor critical elements. Through reporting, you can get business insights and calculate future revenues. These reports enable you to see the strength and weaknesses of your business. The reporting function of automated billing platform may focus on four main pillars: cash, revenue, sales and MRR (monthly recurring revenue).
You have to track your sales to solve payment issues, such as lack of funds and expired cheques or credit cards. If you want to avoid problematic customers, make sure to maintain records of each business client. With an electronic platform, you can manage data for evaluation.
With the help of reporting, you can increase the visibility of the billing procedure. With subscription billing at scale, it is almost impossible to track revenue manually. Your MRR (monthly recurring revenue) is your most important subscription metric and helps you to track the growth and performance of your business. A modern automated billing platform can provide you with real-time insights of your new MRR, expansion MRR, Contraction MRR, and churned MRR
Image Credits: Software Business from nd300 /Shutterstock