Does your Business Require Subscription Billing? Find out

know if your business require subscription based billing model

Subscription billing or recurring billing is a payment model where a user pays to a company for their product or service every month or based on a schedule decided by the company.

In recurring billing, a customer will provide the credit card details to the company whose product or service he’s using, and the company will automatically charge the card periodically.

The seller will then withdraw the payment on a standard program until the subscriber’s subscription expires or is cancelled.

How do you know that your business requires a subscription billing payment method?

The subscription version exemplifies this notion, and its popularity has made it among those fastest-growing e-commerce categories. Other vital indications which suggest that your business needs a subscription-based billing model are: –

  • You provide an ongoing service
  • You’ve regular customers
  • Some of your customers miss payments every month
  • You offer a different level of the same product
  • You offer training or educational materials every month

These are some of the indicators that you suggest you should switch to a recurring billing payment model as early as possible. But what benefits you and your customer will get after switching to a subscription billing model instead of the traditional payment method? This is a great question; we’ve covered many reasons how it will benefit both the business and the consumer.

Benefits of Subscription Billing for Businesses

Let us take a look at some of the benefits of Subscription billing payment model and how it can help your business.

Customer Retention & Relationship

Subscription Billing can help to improve relationships with subscribers. When regular monthly recurring income spurs growth, preservation becomes among the most-watched metrics in an organization, and membership management makes a stronger concentrate.

Payment Gateway Options

A recurring billing payment model brings you numerous online payment gateway options to choose from. It helps in bringing you the flexibleness of choosing the very best and the most economical payment support systems or gateways.

Increase Usability & Efficiency

Subscription billing software is simple to corporate within a company’s or an organization’s payment gateways, e-commerce platforms, and any additional that may be employed.

Benefits of Subscription Billing for Consumers

Let us take a look at some of the benefits of Subscription billing payment model and how it can help your consumers.

Automation

For customers, with subscription billing management, they do not have to make a repetitive buy for the same product every month. Subscription management software saves the effort & time of reminding the customer of monthly payments and urges them to fill up all the details again.

Secure Information

With recurring billing payment model, a business can safely manage their client’s data, in addition to decreasing the duplication and flow of sensitive info and preventing different kinds of employee error.

Custom Billing Options

A business can have complete control over the charging cycles. It will provide your customers with flexible monthly, weekly, or yearly payments options.

Try Payvoice

Payvoice makes it easy to create beautiful subscription portals from Stripe products and plans. Payvoice syncs with your Stripe products and plans and allows you to create beautiful subscription portals from any number of those plans. It will also enable your sales team to manage Stripe’s subscription billing from outside Stripe.

How to Choose the Right SaaS Pricing Model

Software as a Service (SaaS) is a significantly popular service model for several business applications. It is a way of offering Software solutions to the end-user through the web. SaaS can provide excellent opportunities for most businesses and most startups, generally in pricing and versatility.

In contrast to regular Software, clients using your SaaS products pay for it regularly i.e. recurring payment. One of the essential benefits of Software as a Service (SaaS) is that you have the option to think in a different way about the product’s pricing model.

In this article, we are going to show you how to choose a pricing model for your SaaS business.

Flat Fee Pricing

Flat fee pricing is a SaaS pricing model where a business charges a fixed or decided rate for a product rather than charging by the hrs or use of a product or service. Providing a single product at a single price makes it easier to concentrate on product sales and marketing upon selling a unique, evidently-described offer.

Tiered Pricing Model

A tiered pricing model in SaaS is a pricing model where a business sells its products or services in an individual selling price range. With Tiered pricing, the first ten units would cost, say, $5 each. The next 21-30 units would cost $4 each, and the following 31-40 units would cost $3 each. This is also a popular pricing strategy used by many SaaS providers because it offers several pricing options for a product.

Feature Based Pricing Model

As the name suggests, Feature-Based Pricing Model in SaaS refers to users paying for features, the more you spend, the more features you’ll get. This model is also one of the most popular pricing models among many SaaS providers because it is easy for vendors to create a feature-based pricing model, and consumers also know it.

Pay per user aka Per user pricing

In SaaS, per-user pricing is a pricing model where a user is charged differently for every product it uses. It is one of the most controversial pricing models in SaaS, and it is said that the per-user pricing model kills your monthly active users metric and sets you up for a long term failure.

Other SaaS Pricing Models Include: –

  • Storage Pricing: Web Hosting, RDP’s, and Cloud storage companies use this pricing model. The pricing depends on the amount of storage you are going to consume.
  • Active User Pricing: In this model, only pay for the users who use the Software; it doesn’t matter how many users you pay for.
  • Pay as you go: You are charged based on the usage of a particular service. AWS uses this pricing model.
  • Freemium: A freemium pricing model in Saas refers to Software, service, or product which is free to use but is limited, and to get more features; you need to pay for additional packages. Slack and Evernote are some of the examples.

Pricing is one of the significant issues among the SaaS business model. If you are a SaaS owner and want to improve your pricing, revenue, and profit, then you can check out Payvoice – The Best Subscription Management and Recurring Billing Software.Payvoice makes it easy to create beautiful subscription portals from Stripe products and plans. Payvoice syncs with your Stripe products and plans and allows you to create beautiful subscription portals from any number of those plans. It will also enable your sales team to manage Stripe’s subscription billing from outside Stripe.

Top Benefits of Subscription Management Software for your Business

Subscription management is the process of managing and controlling all facets of products and services offered repeatedly by using a weekly, monthly, quarterly, or perhaps yearly subscription-based pricing model. Subscription management software ensures you maintain every record of the customer lifecycle, including managing trials, adding subscriptions, processing credit card payments, create invoices, and more.

Recurring billing & subscription management software can assist many SaaS companies to get better revenue during marketing strategies involving discount rates, vouchers, or perhaps offering free trials to new users and can aid organizations in controlling regular frauds in their subscribers. Let us take a look at some of the benefits of Subscription management software and how it can help your business.

Customer Retention & Relationship

This software program can also help to improve relationships with subscribers. Once customers go back to a company regularly, the link turns into an extended discussion, rather than an underlying transaction. With this relationship, client retention is vital. When regular monthly recurring income spurs growth, preservation becomes among the most-watched metrics in an organization, and membership management makes a stronger concentrate.

Flexible

Good subscription management software is simple to incorporate within a business’s preexisting repayment gateway(s), web commerce platform answer, financial devices, and some other e-commerce equipment that might be used. The fast and efficient execution of the software program results in quicker ROI.

Payment Gateway Options

A recurring billing software program brings you numerous online payment gateway options to choose from. It helps in bringing you the flexibleness of choosing the very best and the most economical payment support systems or gateways. You can save deal costs employing payment gateways that offer you lower prices.

Automation

For customers, with subscription billing management, they do not have to make a repetitive buy for the same product every month. Subscription management software saves the effort & time of reminding the customer of monthly payments and urges them to fill up all the details again.  This process saves a lot of time on a business that can be utilized to boost the productivity level.

If you are looking for subscription management software then Payvoice is the perfect option for you.  Payvoice syncs with your Stripe products and plans and allows you to create beautiful subscription portals from any number of those plans. It will also allow your sales team to manage Stripe’s subscription billing from outside Stripe.

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