Recurring Billing Systems: 7 Signs It's Time To Change

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http://bit.ly/1g7UHVO Are you launching or building a recurring revenue business? Are you seeking answers to tough questions, like “How do I price in a way customers want to buy?” “How do I avoid delaying my subscription launch because I don’t have the right systems to support it?” It’s time to learn more about the 7 Signs it’s Time for a New Recurring Billing System.

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  • Nice Read ! I would like to suggest one more useful recurring billing software i.e. Invoicera. It is an online recurring billing software with features like auto credit adjust,auto billing,online customization. It helps us to provide better control over business finances and increase the productivity of the business. You may also consider this tool.(http://www.invoicera.com/subscription-billing.html)
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Recurring Billing Systems: 7 Signs It's Time To Change

  1. You want to move to electronic payments for smaller orders Self-Service Many customers want to try and buy in a self-service manner. They have an expectation of being able to pay by credit card. If your average recurring payment is less than $500, you don’t want to bother with invoicing and collecting. Merchant of Record There are payment services that take on the burden of being “MOR”. When you get some cash and history with your bank you want to take this on. Being the MOR has many advantages Cash Flow Your DSO effectively goes to zero when everyone is on credit card or ACH.
  2. Your sales team can’t upsell & cross-sell customers because you can’t identify them Visibility of Customer Details in Salesforce If your sales people use Salesforce.com, that is where you need accurate details of what products and plans customers are currently subscribed Accurate Up-Sells and Add-Ons If you don’t know when subscribtions start and end, it’s impossible to create quotes that are pro-rated or coterminate with other subscriptions the customer already has Renewals If you find out that a customer was up for a renewal after the renewal date, your chances of recapturing that revenue are low
  3. You want to price in a way customers want to buy - and you can’t Align to Value Try and Buy Trust and Commitment Most customers will align your products value with something – users, GB of Storage, documents, projects, etc. You should be able to price in a way that drives uptake You should be able to do a trial that requires a credit card, or doesn’t require a credit card, have a time based trial, or have a product that is always free Monthly may be the low touch way to get customers to buy, but once they like it they should be able to pay for the year and get discount
  4. Your invoices lack important details at best or worse, the amounts are flat-out wrong They Should be Correct You face an uphill battle in “delighting” your customers if your invoices aren’t right. We especially see this in usagebased models. One Document They Read! You know that your current customers all get an invoice, but you were told that you couldn’t put important new information on on the one document you know your customers read Transparency Little things like showing the service period give customers the comfort that you know what you’re doing and that should pay.
  5. You treat price changes like a one time event, instead of a process Engineering Most companies have the product pricing baked deeply into their code and systems. You don’t change pricing often because you can’t Experimentation You would like to continually do A/B testing on how customers want to buy and pay. You can’t If you had MRR Contribution… Modern metrics like MRR help you decide which products are contributing the most revenue, and whether customers are upgrading over time…
  6. You delay your new subscription launch due to your systems Disruptive market forces Your engineering team.. One time events.. If you’re like most companies, you have a very small competitor that is pricing completely differently. You can’t technically even sell that way. They are building your product. Anything you need to do around subscriptions can’t be touched until after the product is complete… The concept of a recurring relationship with the customer doesn’t exist in your systems. Everything looks like a SKU.
  7. You can’t pass an audit because you can’t accurately track recurring revenue Contracts are Different Forensic Science No System of Record Your sales people are doing so many different types of deals that you can’t even keep track of how to treat the revenue and deferral schedule You have to search in crazy places to find the details of what you charged who for what period of time. You did things differently every different year. There is not one place that houses all the definitive records of the relationship with the customer
  8. Watch the webcast today! WAT C H N O W

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