Opting for the right billing model is crucial to business success. Whether you are looking into a new e-commerce project or upgrading your current business model, it is important to choose the right billing tools that fit your requirements and work for your business.
Recurring billing is currently one of the hottest invoice and billing strategies in the market, especially for subscription-based businesses. It entails on-going payments for a product or service in a quick, efficient, and accurate manner. But how can your business benefit from it? Let’s find out!
Benefits of Recurring Billing Software
The right recurring billing software can transform the way you do business. However, keep in mind that not all billing tools offer the same features. So, if you want to make the most of your recurring billing software, make sure you use an application that offers most – if not all – of the following benefits.
1. Revenue Recovery
Manual billing is prone to human error, which means there’s always a chance of losing revenue through forgetfulness, typing errors, and other mistakes. With recurring billing software, revenue loss due to forgetfulness and errors is likely to drop down to zero. Thanks to automated reminders and smart payment solutions, good recurring billing software can help recover business revenues that were lost due to card expiration and other issues.
2. Fewer Manual Invoice Adjustments
It’s even better when the billing tools you choose allow for automatic invoice proration adjustment. In other words, it can help adjust customers’ bill amount even if they make any changes in the plan in the middle of the billing cycle. Refunds, credits, upgrades, downgrades, chargebacks, adjustments, and cancellations will never interrupt billing again or lead to revenue loss.
3. Improved Security and Compliance
Regardless of the type of business you run, customer data security should be your top priority. If your business is not PSD2/SCA compliant and cardholder data is compromised, you may be held accountable and end up paying thousands of dollars as fines.
High-quality billing solutions can help you in this regard. They adapt easily to the ever-changing data security standards to ensure your billing model is PSD2/SCA compliant, and you provide maximum security to your customers.
4. Better Business Decisions
Analytics and financial reporting is the key to real growth. It gives you the insights you need to make the right business decisions and steer your business to success. Good subscription billing platforms are designed to analyze business metrics, such as MRR, CAC, LTV, and churn. Plus, choosing recurring billing software with reliable reports and analytics means more accurate revenue prediction, which also helps you make important business decisions.
5. Higher Customer Retention
Recurring billing software comes with built-in features such as subscription management, flexible plan management, coupons, and promo codes management, prorated billing, and much more. The goal is to eliminate billing errors and provide seamless and efficient services that improve customer experience. Since happy customers mean higher customer retention, recurring billing software can ultimately help generate higher revenues!
6. Unrestricted Data Access
Restricted data access is often one of the biggest concerns while working with billing or payment vendors. If your billing tool is SaaS, data is housed on the SaaS servers. You can access it only through standard reports or using APIs.
For that reason, it’s smarter to opt for billing software that gives you complete access to your data and allows you to manipulate it freely.
7. Ability to Add New Features and Functionality
Adding new and personalized features and functionalities to your recurring billing software shouldn’t be a problem as long as you choose the right billing tool. Look for flexible and modular solutions that allow you to add plug-ins and change the actual software code to customize features. Open-source software is best in this regard.
8. Cost-Effective Payment Billing
Affordability is crucial. You need a cost-effective billing solution that offers maximum efficacy while keeping the costs to a minimum. Open-source software is the best bet, as it is quite affordable even if you add new engineering work. It’s even better when the open-source software you choose is scalable!
9. Manage a High Volume of Transactions
The right recurring billing software will make billing seamless by helping you manage a high volume of transactions and data. However, keep in mind that some solutions currently available in the market come with a rather restrictive limit. So, make sure you choose a billing tool that has no limitation on usage.
Choosing the Right Recurring Billing Software
Recurring billing software will make your life easier by simplifying the billing process and helping you process recurring payments automatically. It is also appealing from the customers’ point of view as it is quick and convenient.
The trick is to choose the right recurring billing software that offers ALL the benefits discussed above and more.
If you are looking for a billing tool to manage customer accounts, subscriptions, invoices, and payments – consider Kill Bill, our open-source billing and payment platform that offers subscription billing features and allows for different invoice and billing solutions.
It can be customized to fit your unique business needs and allows you to manage high volumes of data and transactions without any trouble. The best part is that there is no limitation on usage, and you have complete access to your data at all times!
You can easily integrate it with your existing systems to benefit from analytics and financial reporting, catalog flexibility, and much more.
In short, Kill Bill provides the complete package, since we offer a unique set of attributes and features that gives it an edge over other solutions currently in the market. Contact us to learn more.