Gone are the days of pay-per-product pricing for SaaS services, where SaaS businesses would grant lifetime full ownership rights to customers. With the advent of cloud computing, newer businesses are opting to sell a subscription plan for their product to other businesses and customers.
Subscription Plans can be very helpful in maximizing Customer Lifetime Value (CLV) because they involve iterative purchasing in every billing cycle. Moreover, they also help bring in new customers because, unlike the one-time purchase model, other users cannot freely access the product purchased by a current customer.
The benefits of SaaS subscription are immense, but at the same time, managing them can be a very perplexing job. The problem becomes even bigger when startups come out of the initial takeoff phase and start scaling. This is why SaaS Billing Software is an essential addition to the infrastructure of any budding business.
Keep reading to learn why this software is among the best solutions for startups.
Features of SaaS Billing Software:
While the features of specific SaaS Billing Software will vary from one service to another, there are a few common things that all these services can do. We have curated a small list of these key features below.
● Automated Billing Solution: The main feature of any billing system for SaaS companies is that it harnesses the power of automation to provide precise billing. It can process a heavy volume of bills with complete ease. This feature is very resourceful as it gives individualized bills to all customers. It ensures the smooth execution of all phases ranging from the generation of the invoice to revenue recognition. It also oversees dunning management by sending customers notifications when the card is about to decline and sets up alternative payment paths if one method fails.
● Revenue Recognition: This is a financial concept relating to how revenue will be displaced on a company’s financial records. Revenue recognition basically refers to if the revenue is received by the company in exchange for the service. We don’t need to go into more detail regarding this concept, and the only relevant information is that businesses need to adhere to International Financial Reporting Standards (IFRS). Software helps in recording accurate revenue recognition which keeps businesses out of trouble.
● Going Beyond Billing: One main advantage of such software is that it does not limit to billing and goes beyond to help businesses adjust better. One way it does so is by offering integrations with other CRM and accounting software. Not all businesses have the same needs and they require different integrations depending on the industry and competition. SaaS Billing Software helps businesses stay ahead of the curve by offering unique integrative solutions. Moreover, it also records valuable customer data which can then be used to draw inferences about customer behavior and optimize services.
Benefits of SaaS Billing Software
The previous section regarding the many brilliant features of SaaS billing software is enough to realize the need for such software. However, if you still are not convinced, you should keep reading to see how this SaaS Billing Solution is equally helpful to customers and businesses.
● Quick Setup: Not all SaaS businesses aim to capture a B2B market, and there are many SaaS businesses engaged in B2C dealings. When dealing with businesses, there is a long process that involves scheduling a demo and then doing back-and-forth meetings. However, when dealing directly with customers, it is unnecessary to delay their onboarding by setting up these manual processes. Software automates the process, and customer onboarding can take as little as a few minutes.
● Less Prone to Human Error: Manual processes are notoriously famous for being susceptible to human errors. A single wrong entry can snowball into major issues like delays, customer dissatisfaction, and eventual churning. All of these problems can be avoided while creating a smooth customer experience by using billing software.
● Adaptability: This is a wide term when talking about SaaS Billing, and this speaks volumes about how SaaS billing can be helpful across the board. Firstly, it can be adapted to any business working in any country. It has features to adjust the payment to any currency or language. It can also be paired with websites using Hosted Payment Pages that are designed to look like a part of the parent website. Lastly, they can be suited to any pricing model, and the bills are also prorated to suit individual customers.
Conclusion:
The preceding discourse on SaaS Billing Software tells us that the benefits it offers to a growing startup go beyond just automating legacy billing systems. In reality, it is a full package of solutions that enables young businesses in many ways. It also provides a fortified launching base by giving a multitude of features that are important for any growing business. With the right use of SaaS Billing Software, a startup can streamline its operations, enhance customer satisfaction, and pave the way for sustained growth.