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3 Challenges & Solutions for Companies that use Subscription Billing

Companies that are into subscription business adopt various subscription business models to sell content and software. Not every subscription business models fits every business needs because of difference in business types and services.<br><br>Read to know the top three challenges and solutions that subscription billing companies are facing.<br><br>Learn about subscription billing solution: https://www.vindicia.com/solutions/subscription-billing/<br>

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3 Challenges & Solutions for Companies that use Subscription Billing

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  1. 3 Challenges and Solutions for companies that use Subscription Billing © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential. 1

  2. 3 Challenges and Solutions for companies that use Subscription Billing The subscription business model is a great way to sell everything from content and software to physical goods. While the business model has proven itself successful, there are a number of challenges to consider before getting started. 1. Churn Churn is the term used to describe the number of customers who sign up and then cancel their subscriptions. It is expressed through an annual percentage rate. A high churn rate means the business has customer retention issues. Acquiring new customers is important, but it won't have as large of an effect on a business's revenue if the churn rate is high. Say, on average, 40 percent of a business's customers leave after one year. That means it would have to acquire more than that every year to expand. The solution to this challenge is to focus on customer retention. A business suffering from a high churn rate needs to offer its customers the best products and services possible. It also needs to improve customer service and recurring billing solutions. By utilizing a reliable subscription billing solution that can handle new promotions, businesses can ensure customers are happy and that they keep coming back. 2. Growth Growth is usually a good thing, but it can cause some problems. As a business grows, it can be difficult to ensure customers still receive high-quality products and services. 2 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

  3. The technology and personnel that is currently sufficient likely won't be after some success. That's why it's important to focus on scalable technology from the beginning. If the technology is in place originally, customers won't notice any issues resulting from expansion, eliminating potential situations that can negatively affect customer retention. Scalable technology ensures that customers stay happy with a business's offerings. The same goes for seasonal growth. If a business has large surges in the amount of business they conduct during the holidays, it needs to make sure a subscription billing solution that can expand and contract as needed is in place. "Providing customers with the customized options they want means you need technology that is flexible and fast." also accommodate automatic payments from a number of different methods, such as credit and debit cards, direct debit and other electronic payment methods. 3. Flexibility and speed There are a number of ways to customize subscription offerings. Unfortunately, providing options makes running the business more complex, especially when it comes to billing. Providing customers with the customized options they want means a business needs to have technology that is flexible and fast. Try to find a subscription billing software that can offer monthly, quarterly and annual subscriptions. It should 3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

  4. While payments need to be flexible and fast, they also should be secure. Find out what security measures are in place before utilizing a recurring billing solution. The last thing you want is for important customer payment information to be compromised. 4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

  5. About the Author: Bryta Schulz Bryta joined Vindicia in 2013 and serves as Senior Vice President of Marketing. She is responsible for building brand awareness, creating go-to-market strategy and promotion, and driving growth. With over a decade of executive level marketing, product management and PR experience, Bryta has led marketing teams in enterprise technology and SaaS companies. Her experience includes heading product marketing at GoGrid, PGP, RSA and Symantec and business development and product management positions at Xcert, Thales, and Persistence Software. Bryta holds a MA in Translation from the Johannes Gutenberg University Mainz and an MBA from the University of Reutlingen. Visit our Blog for more information. 5 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

  6. Thank You Like us on Facebook facebook.com/vindicia Follow us on Twitter @Vindicia Connect with us on Linkedin linkedin.com/company/vindicia © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential. 6

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