Many businesses are turning to a recurring billing model (aka subscriptions) to further their success. Companies like Netflix, Dollar Shave Club, and even Apple have recurring billing models that enhance user experiences while cultivating customer relationships. Whether you’re a retail company or a professional services provider, you shouldn’t be ignoring subscriptions.
Recurring Billing Models = Flexibility
One of the biggest perks of a subscription-based model is the flexibility for customers and businesses alike. Customers can adjust their subscription to meet their specific needs. They are able to predict what they need, how much, and even when they no longer need something.
For the business, a subscription model offers the flexibility to better plan for resources and predict incoming revenue. Using data and insight from the recurring billing model, businesses are able to make better decisions without having to recalculate costs. As businesses grow and change, they can make adjustments to offerings and change objectives on a dime.
Establish Long-Term Customer Relationships
Companies are often focused on end goals—getting to the end of the project or contract. With recurring billing services, the business has the ability to grow, cater, and foster trust with its clients. This changes the flow from actively just trying to get projects completed to continuing to nurture their customer’s success. A recurring billing model gives businesses accountability and leads to much more proactive behavior. When both parties are interested in adding value to their relationship, they help each other from falling behind in the ever-changing business landscape.
One of the biggest functions of a recurring billing model is the ability to scale up or down contracts. When companies need to tighten their wallets they can give up certain pieces of their contracts without having to renegotiate a whole new contract. This also gives them the ability to add to their contracts when needed. Better use of resources grants both companies the ability to scale as needed.
If you’re looking to implement a recurring billing model at your business, see how 360 Subscription Billing can help manage terms and frequency of billing, customize actions for specific contracts, facilitate end-of-term actions, report on subscriptions, and much more—right within NetSuite!