Today, SaaS subscription billing is considered one of the most successful and leading business models in the world. Also, the episode of the pandemic gave an instant boost to the popularity of this business mode. It provided a way to diversify the recurring revenue to even those businesses that never thought of running their business processes on this business model. Businesses that opted for this business model successfully survived and thrived even in the toughest times of pandemic outspread and phases of recessions after the pandemic.
Now that economic situations are coming back to normal, businesses are still entering the SaaS subscription market. Also, SaaS billing software made it easier for varying businesses to operate and streamline recurring revenue.
In this article, we are going to shed light on the facts that how SaaS billing software helps in revenue recognition and helps retailers achieve their revenue targets.
- Automated Invoicing
Payment processing and revenue recognition directly link with the billing and invoicing process. Coming towards the invoicing process it is not a one-step thing rather it is a complete process. The invoice represents your SaaS business. There is a proper dedicated place for the logo. There is the portion for billing. Sometimes, SaaS businesses also dedicate a place to post ads for their upcoming add-ons and new features.
So, invoicing is a complete process that needs to be done with perfection so that billing and payments can be done seamlessly.
- Quick Payment Processing
Revenue management directly links with payment processing. Today, payment processing has become a customer experience, and you need to make sure that your customer base gets the best experience throughout. For that, SaaS billing solutions integrate with payment gateways. The basic purpose of a payment gateway integration is to maximize online security while transactions are processed. Other than that people prefer having payment gateways because these are specialized platforms that offer everything that your customers need when they pay their subscription fee. For instance, in the SaaS subscription business market, not all customers prefer aping through bank cards.
Young subscribers demand modern means of paying subscription charges. And only integration with the right gateways will help in making your customers pay by opting for the payment method of their choice.
- Payment Recoveries
Revenue recognition means the amount of revenue that you finally get in the revenue stream no matter when and how you received payments from subscribers.
Payment recoveries are an important part of revenue recognition processes. Even in the subscription business market, not all customers pay their subscription fees on time. You need to send them notifications regarding their due subscription charges. You need to update them about their card limits and expiry dates. And for that, subscription businesses integrate payment gateways with their SaaS billing solutions.
The automated billing software sends automated notifications to the customer to pay their subscription charges. This process is called dunning management. The most important thing in this process is to keep the tone professional and soft. It is usually not possible for humans to stay composed and unbiased while asking for unpaid payments. So, automated SaaS billing software is used to handle this process professionally. However, payments (no matter when they are recovered) become part of the recurring revenue stream. Also, they play role in diversifying the recurring revenue.
- Multiple Payment Methods
Today, in the subscription business market, customers are belonging to varying age groups, and not all of them want to pay subscription charges by opting for a single payment method. There are millennials, Gen Z as well as Boomers in the same society. And not a single business wants to leave even a single customer.
And to cater for them all, you need to allow them to pay subscription fees through the payment method that they want. When payment gateways are integrated with the SaaS billing system, customers can opt for their preferred payment gateways. For instance, the young generation prefers paying through modern means e.g. digital wallets and cryptocurrencies. However, millennials consider bank cards a much safer option.
Payment gateway integration opens up ways to cater to customers from all dimensions because now you don’t have any payment processing-related issues or roadblocks.
- Maximum Outreach
Subscription businesses target customers from across borders. They are not contented with the local customer base. They compete with enterprises and even SMEs that are already serving international customers and clients. So, as a retailer, everyone wants to earn more and more by catering to more subscribers.
A SaaS billing platform when integrates with different payment gateways, your SaaS business outreach automatically increases. Also, sometimes, customers prefer a specific gateway in a specific region. For instance, PayPal and Stripe are famous gateways that many people prefer in the American region, however, in Africa, people are using Paystack.
So, automated billing software for SaaS also increases the outreach of a business to bring diverse customers on board. And diverse customer base is a way of diversifying recurring revenue.
Another very important thing where the SaaS billing platform plays its role is the visibility of the revenue. You will have complete knowledge of where you have earned and how much. Other than that, you will be able to manage the revenue.
For large enterprises, the core billing platform can be integrated with third-party accounting software that will streamline the accounting processes including the revenue processes so as to make the overall performance of the business better. You will be able to compete in one of the most highly competitive markets in the world.
- Analytics & Reporting
SaaS billing software also offers the feature of analytics and reporting. This feature shows whether you are meeting the revenue targets or not. If you are not meeting the revenue target, there is a chance to make changes in your strategy. Improvise strategy to increase the flow of recurring revenue.
Even you can improve your tech stack to receive payments in time. When payments are not received on time, one of the reasons can be the need for improvement in the tech stack. In that case, a flexible billing platform can integrate with other applications can payment processing gateways. When such other applications and gateways are integrated, the efficiency of the system boosts.
Analysis of Your Revenue Stream
There are a lot more reasons that are convincing enough to go for SaaS billing solutions. To sum it up, they streamline business operations in a way that productivity and revenue increase automatically. If you are looking for a SaaS billing platform, then SubscriptionFlow is the one that you need.
If you want to improve your revenue operations (RevOps), then it is crucial to revisit or audit your pricing policy and policy to earn revenue. Admit the reality that even if your pricing policy is helping you achieve revenue targets today, the same policy will not continue producing the same results for you in the long run. So, it is your need to change revenue policies from time to time.
