What is the Subscription Management Software?
Subscription Management Software refers to cloud computing for subscription billing and management. The web-based subscription software allows subscription businesses and their users to manage recurring billing, payment, and revenue on-the-go. Along with this, all is done without the hassles of coding, updating the software, or managing the technical affairs.
Before diving into subscription management software 2020 advantages and disadvantages. let’s understand the subscription business, its market, and its requirement for efficient recurring billing management.
Understanding the Relation between Subscription Business, Subscription Market, and Subscription Software
Mckinsey’s research suggests 15 percent of online shoppers have signed up for one or more subscriptions. This helps receive products on a recurring basis, frequently through monthly boxes. So, The subscription e-commerce economy is here to stay. Therefore, subscription startups have contributed majorly in shaping the whole subscription e-commerce-based economy.
Subscription businesses in less than a decade, grew more than 100 percent. The telly has surpassed $15 billion in 2020 in comparison with $7.5 billion in sales in 2018.
The changing shopping and purchasing habits of consumers are pressing businesses to offer their products or services as subscriptions. Also, it helps invest more in retention rather than hefty costs of acquisition of customers.
Subscription economy fuels with customer retention. Considering this, statistics suggest that bad customer experience backfires. Consequently, the streamlined operations across the board help subscription businesses to manage their customers. This also help to manage their recurring billing and payments, and ultimately recurring revenue of the subscription business efficiently.
Also, manual management cannot deal with a huge number of subscriptions. Businesses need customized and tailored subscription business management solutions.
Subscription Management Features and Tools to Manage Subscription Business
Subscription management software provides features and modules to manage the pricing, sales, billing, and payments of subscription-based products.
However, some of the most important features of the best subscription management software must include:
- Recurring Billing Management
- Subscription Handling
- Payment Gateways Integration
- Revenue Recognition.
- Monitoring and Reporting
- Third-party Integrations
Pros of the Subscription Management Software
Subscription software automates the whole recurring billing, payment, and revenue management cycle. The innovation of automation backed by artificial intelligence allows subscription platforms to put the invoicing, plan upgrades and downgrades, or cancellations. Other than this, the billing adjustments such as coupon implementation, taxation, etc. are also incorporated. Furthermore, there include some add-ons as well such as payment processing, recurring revenue management.
Cloud Subscription Management
Web-based Subscription management helps subscription businesses to manage their recurring billing, payment, and revenues from anywhere, anytime. It saves data and details on the cloud without the hassles of unauthorized access into the system.
Lower Upfront Costs
Instead of buying a costly license for the software, SaaS subscriptions help subscription business to save their resources and money without investing huge on the subscription development.
Integrations, Scalability, and Automatic Updates
Subscription manager software offers integrations to scale the subscription management operations in accordance with the requirements of the subscription businesses. Similarly, SaaS can upscale as well as upgrade, automatically.
Real-Time Monitoring & Reporting
SaaS automates not only billing or payment processing, but they can also automate the holistic as well as particular monitoring and reporting of the subscriptions. Therefore, users can access the real-time insights, can download real-time reports share.
Data-Driven Customer Engagement
Subscription management software allows sales, marketing, product development, and support to streamline their operations across the units based on AI-augmented subscription data. Thus, subscription software helps to achieve goals like reduced churn, personalized customer experience, targeted marketing, etc.
Predictive Analysis and Recurring Revenue Management
Automation fueled by machine learning and artificial intelligence unfolds complicated data sets for efficient predictive analysis of the trends, behaviors, and patterns in recurring billing, transaction history, subscription health, and others.
This helps planning, managing, and maintain better revenue flow by segregating pricing, sales, marketing, and billing as per the cash flow towards deferred or earned revenue.
Use-friendly Plans & Pricing Optimization
Subscription pricing is the most crucial factor in subscription management. A productive subscription software and therefore, needs to introduce features to manage the optimal pricing. Hence, plan to catalog to manage the subscription upgrades and downgrades, efficiently.
Cons of the Subscription Management Software
Higher Long-Term Investment
Subscription software, in the long run, may incur a huge investment without possessing an asset. This is the opposite of the one-time revenue-building business model. But, businesses all over can build their revenue with the constant development of their subscription product.
Technical Dependency or Latency and Performance Issues
SaaS platforms make subscription businesses dependent on the subscription billing services providers. Furthermore, they may incur issues like latency or low-performance with a slow system. These challenges can only be overcome with the affiliation with a robust subscription platform.
Service Disruption and Security Breach Risks
Subscribing to a less-reliable SaaS subscription management software can cost subscription businesses to suffer different issues. Thus, always go with the PCI-compliant subscription software.
Subscription businesses can mitigate the risks and deals with the challenges of subscription services management issues by subscribing to a reliable, secure, and scalable SaaS software. Thus it helps to manage the recurring billing and customer life cycle.