Contents
How to increase revenue with SaaS subscription management
What is SaaS subscription management?
Subscription management for B2B software companies refers to the process of managing and tracking customer subscriptions to their software products. It involves handling the entire lifecycle of a subscription, from setting up a new subscription to renewals and cancellations.
This includes managing customer accounts, billing, payment processing, and ensuring that customers have access to the software they purchased. Subscription management is critical for B2B software companies to maintain a steady revenue stream and keep their customers satisfied.
But how? Here are some key areas of focus for software subscription management:
- Billing management: the process of creating and managing invoices for products or services rendered to customers. It involves tracking payments, managing customer accounts, and ensuring timely payment of invoices to maintain a healthy cash flow for the business.
- Entitlement management: the process of controlling access to products or services based on a customer's entitlements. It involves managing customer permissions, rights, and restrictions for accessing specific features or content within a product or service. This helps businesses ensure that customers are using only what they have paid for, and prevents unauthorized access to paid content or features
- Refunds: you need to provide refunds or credits to customers promptly.
- Compliance: all subscription and financial transactions should comply with local laws, regulations, and policies.
If you get these right, you have a lot of flexibility. You can offer trials, use differentiated pricing easily, and charge users the right amounts at the right time. That’s why subscription management software is a key differentiator for successful revenue organizations.
Why use SaaS subscription management software?
Subscription management software can increase Customer Lifetime Value (CLV), make your product better, and improve billing. Here's how
Increased CLV
Customers are the lifeblood of your business. Subscription management software keeps them happy, increases upsells, and maximizes Customer Lifetime Value.
Keep customers happy
Automated billing guarantees customers are always billed on time. This removes any potential service interruptions and missed payments due to invoices not being sent.
Generate upsell opportunities
Subscription software gives you data on how customers interact with your product. This allows for more informed upselling and cross-selling. Plus, customers are more likely to purchase upsells when they have a positive relationship with your business.
Reduce churn rate
By effectively managing your subscriptions, you can keep your customers satisfied and encourage them to stay with your business. Additionally, you can use the data gathered from subscriptions to send personalized messages, stay informed about individual subscriptions, and take actions to retain customers.
Free up time
When you use software that automates tasks like managing renewals, billing, and maintaining customer accounts, it saves your team time and reduces errors. This means less time is wasted on manual tasks, and fewer mistakes are made, making your business more efficient.
A better product
Access to accurate subscription data and analytics helps you build a better product and better marketing.
Clear forecasting
With subscription-based pricing, you know exactly how much revenue you can expect for a given period. This allows for better forecasting and budgeting, ensuring your business keeps the lights on.
Better insights
Subscription software gives you data on how customers interact with your product. This allows for more informed upselling and cross-selling. Plus, customers are more likely to purchase upsells when they have a positive relationship with your business.
Improved invoicing and billing
Automating your subscription billing management creates consistency, eliminates uncertainty, and helps optimize revenue.
Timely invoices
Subscription management lets you send invoices and process payments automatically. This happens regardless of products offered, pricing, subscription start date, payment terms, and billing methods. You can focus on other things; invoices will always arrive on time.
Frictionless sales
Quote-to-sale software like Salesbricks lets you create SaaS quotes for every prospect, no matter how small. Once you do, prospects can configure their product using an interactive quote. Post-purchase, the software manages subscriptions for you with no extra effort involved.
What to look for in a subscription management solution
No software is the same, and it's important to identify which features are essential for your company. Consider your overall business goals and what you need the software to do.
Here are 6 features that should be considered when selecting subscription management software:
- Entitlements management: Customers should receive the rights and privileges they paid for.
- Subscription management: The subscription process, from product selection to ongoing maintenance, should be as automated as possible.
- Billings and payments: Streamlining payments and invoicing processes removes manual labor and optimizes revenue.
- Quoting Capabilities: Generate customer quotes and provide subscription packages tailored to individual needs.
- Discounting and promotions: Offer discounts, upsells, and promotional campaigns based on customer behavior.
- System-of-record: A secure, reliable system to store and retrieve customer account information.
You must also ensure your chosen software works with your overall roadmap, which can include the following:
- Aligning with goals and needs
- Scalability as your business grows
- Customization options
- Flexible plans that allow you to scale up or down
- Analytics and data-driven insights
- Discount, free trial, and promotion capabilities
Salesbricks can help
Salesbricks is a complete quote-to-cash solution. It gives you everything you need for automated, efficient subscription management. This includes:
- Quotes that are generated in minutes
- Automated billing management
- Advanced entitlements management
- System-of-record
- And more
If you want to make your subscription management process more efficient and easier to manage, contact Salesbricks today for a free demo.
