If you have two options, one to buy a car with cash, and simultaneously you have to pay for accident insurance and maintenance, secondly, an opportunity to use a car by paying a reasonable subscription payment and upgrade it whenever you want, plus the liberty to cancel the subscription, what will you do? The second one, right?
Like the example I have just stated above, you will find many more near you, from Netflix subscription to shaving tools, sanitary product boxes to newborn products. This trend has risen to the surface because of the subscription billing model. The reason behind this is the convenience it offers in terms of subscription plan customization and opt-out policies. Yes, for customers and buyers this is a great thing, but, not all businesses are made to survive by adopting a subscription billing model. Wondering why? Then this article is for you.
Here in this piece, we have discussed how you can analyze your business to know whether you can adopt a subscription or not. If you say ‘yes,’ then we have given few pointers to help to identify a suitable subscription billing and payment management software. Lastly, it contains some benefits to keep your interest going.
To qualify for a subscription-based model you have to do so many things:
- First, that is the nature of your business. This not only includes sectors it can be corporate or private, etc. In addition to this, you have to define the product or service which you can offer for the subscription. Besides, you have to decide which subscription model or type will be suitable for your business. This includes subscription boxes, recurring payments, and an access model.
- Another thing that you need to do after completing the above two steps is to think 5 years ahead of the current time. And do so you have to run a pilot test, doing so will provide you a complete data which you can use to forecast the revenue and business model.
- Lastly, you need to do is analyze the market for threats and opportunities. For this very step, you had to identify your competitors, review the products that they offering, identify the market gap. Afterward, you’d be able to devise a strategy and decision to make success shift from the traditional business model to the new recurring subscription model.
If you are thinking that you have to take three steps, then you are wrong, because qualifying for the subscription-based billing model is just the surface. And, you have to plan the actual thing that is to identify who you are going to bill for, what product or service to bill for, and how much should one be billed. After compiling the list of subscribers, cataloging products, and subscription plans, now is the time to clarify how you will collect bills either online or offline.
But the key to the success of recurring billing and payment model lies in the integration of the right billing software at Subscriptionflow.
Know How Subscription Billing Software Works?
Subscription billing software is designed to make subscription management easy for all types of business from product-based recurring billing to services models. Since subscriptions are based on recurring payments for which the businesses have to create invoices at regular intervals for thousands of clients. This makes subscription management difficult. Therefore, it contains billing and invoice automation features that reduce the need for manual entry. You just have to insert the information and the system will handle the rest.
Another thing that makes subscription billing software ideal is the PCI complaint gateways that process payment instantly. Besides, you can enable a multi-currency payment option to empower subscribers to pay in their local currency. Lastly, the fraud analysis prevents payment failures.
Hold on! Besides fraud analysis, a major concern of subscription businesses is the churn rate. And, the dunning management allows you to reacquire the involuntary churn that is either caused by the credit card failure, expiry, and payment approval. Additionally, it offers a self-service portal for customers. This reduces the hustle of sending multiple notifications and emails. Also, the clients can modify subscription plans, and the system will bill them automatically through proration.