Stop Stressing: Keys to Hassle-Free Subscription Billing

Subscription billing, or SaaS-type billing, offers businesses a way to maintain an ongoing financial relationship with consumers, and allows consumers to have constant, up-to-date access to a frequently used product. Additionally, businesses can rely on recurring revenue and benefit from a smoother transaction process — which is always valued. Since there are numerous advantages on both the business and consumer side, let’s take a moment to review how subscription billing can reduce hassle on both ends of the spectrum.

Automated, Customized Billing vs. Costly Bureaucracy

Businesses often try to design subscription billing across the accounting or IT departments. The problem? The resulting system is difficult to customize, slow to update and can cost a great deal of money to create. In theory, this would allow businesses to have total control over their platform, but oftentimes, it results in a large portion of time devoted to managing and further developing the system.

“Software as a service” products can be instantly updated, which allows users to customize the billing process as needed. Businesses can use SaaS products to change the entire pricing structure or to offer limited-time discounts. The system will remember these changes and continue to automate recurring billing unless the business changes the settings again. SaaS products save company time, which allows employees to focus more on product development. The products also simplify company-customer interactions, allowing for organic and thorough customer service.

Tailored Customer Service

The ability to instantly customize the entire billing system means that the SaaS billing can streamline the customer service experience. If a customer has a question about the account, a company operator can immediately pull up the appropriate records. If the customer wants a refund, the operator can perform that action without having to route through a complicated process with the accounting department. SaaS billing also provides businesses with access to real-time subscriber metrics that can show areas of weakness or potential growth. Businesses can also implement customer-facing programs such as free trials, limited trials or discounts with billing software. Keeping track nof those programs in a separate department can cause some offers and customers to fall through the cracks.

Cheaper, Secure Payments

Recurring billing services should be PCI compliant — a certification that the major credit card brands require of payment processors. Compliance involves a 12-point system that includes network firewalls, user data encryption and frequent vulnerability monitoring. PCI compliance for an in-house billing system is costly and complicated. Using the SaaS model, the business can assure potential customers that financial transactions are secure while also accepting a wider range of payment types.

Businesses can also shop around for different payment gateways or credit card authorization services. This allows the business to shop for better deals on transaction fees and gives the business the ability to quickly cut ties with a gateway that isn’t providing optimal service.

Not sure where to start when it comes to finding a subscription billing company that fits your needs? Download our free Six Must-Haves guide, which covers the features you need in a subscription billing service, why you need them, and comes with a bonus feature checklist: