Here Is Your Definitive Guide to Running Your Subscription-based Business Model and Building Strong Growth Model with SubscriptionFlow

The recent trends in B2B and SaaS companies in every industry have seen a shift towards the Subscription-based Business Model. This has occurred due to many reasons like changes in customer expectations with the boom in eCommerce and subscription-based services and revision of how revenue growth is seen. Now recurring revenue is seen as a viable factor in the company’s growth and the Subscription-based Business Model is a promising model to achieve it. Consumers are now expecting to receive subscription-based services for their automated billing portal which essentially takes away the worry of having to pay invoices and bills. As a company expert in all things subscription and Subscription-based Business Model, we have seen the rise of the subscription economy. This economic structure is built around customer relationships and value-based products which run the wheel of recurring revenue for businesses. At SubscriptionFlow, we provide services to SaaS companies for enriched subscription management software and businesses in transition as well.

Gear Up For Recurring Revenue Growth

Previously, having business knowledge required the business to forge their path and learn from their mistakes. However, since many companies are witnessing a major shift to the subscription economy, having tips for subscription growth will prove helpful. SubscriptionFlow believes that industry knowledge is important for companies to succeed with a Subscription-based Business Model. This is why we have delved deep into what our experience with subscription businesses has taught and, in imparting this knowledge, will allow other businesses to follow a better path for success.

So, starting with why your business might need a Subscription-based Business Model. First of all, it is a win-win situation for your customers and you. Because your business would be focused on earning your customers’ trust for repeated purchases and recurring renewals, your new products, and the overall sales process will be designed to succeed. For SaaS business, it provides the opportunity to build predictable cash flow and recurring revenue streams. Most of all, you would need a centralized subscription management software like SubscriptionFlow which has helped many companies centralize and automate their customer relationship processes, sales pipeline, invoicing, and billing processes. From analytics, intuitive pricing models, flexible promotions, fast billing, quick accounting, to the customer portal, smart dunning, transparent invoices, and seamless customer service, the Subscription-based Business Model has defined success for many businesses. The following are ways, how businesses are improving their performance under the Subscription-based Business Model.

Streamlining your Billing Process

To streamline your billing processes which means you would need recurring billing software which will also manage your customer information, offer accounting integration for revenue recognition, etc. Businesses who are dealing with Subscription-based Business Model, need to be able to collect cash via multiple different payment methods, prorate for those who sign up mid-month, and setting up new customers with the seamless onboarding process. Once your customers have signed up, your billing process on a monthly, weekly, or annual basis has to be automated for accurate and transparent invoices. SubscriptionFlow offers integrations with QuickBooks, Avalara, Salesforce, and other applications to streamline your cash flow once you have automated your transactions. Moreover, when you are shifting to the Subscription-based Business Model, you would need a scalable and robust infrastructure for growing rapidly which offers seamless integrations, payment gateways, and security like the ones our users are enjoying with SubscriptionFlow.

Retention Is the Key to Consistent Revenue Growth

For consistent growth that your Subscription-based Business Model depends on, you need to create and nurture customer relationships that last long. As we have mentioned above how subscription management software is the backbone of your recurring revenue strategy. Customer retention is threatened by churn which usually occurs due to failed payments, or voluntary downgrades and cancellations. For involuntary churn, you would need a dunning management tool that automates retries and then sends email reminders for information update to your customers. You must also offer customer portals for consistent experience and control over their upgrades, downgrades, and their subscription history.

Choose the Best Pricing Model

In subscription-based businesses, pricing and packaging is an important component of selling your subscription-based products and services. It will help you make your place in a competitive market and allows you to acquire new customers as well as reduce churn. SubscriptionFlow has seen how companies struggling with upgrades and churn because of their misfit pricing packages. This is why our suggestion to such companies is to start with basic usage-based monthly packages and then offer different upgrades on an annual or bi-annual basis. This way your customers will be able to see value in your products, you will have more time developing automated workflows for your sales pipeline, and our subscription management software allows users to develop tier or volume-based pricing packages at any time. With our subscription management software, users can also offer freemium, trials, and promotional incentives to promote their products and pricing packages.

Measure Success with SaaS Metrics

When we talk about measuring your success then usually we refer to subscription metrics or key performance metrics. Our users who are working with Subscription-based Business Model, our subscription management software allows them to view monthly recurring revenue, annual recurring revenue, churn rate, average revenue per customer, and other SaaS metrics. At SubscriptionFlow, we believe users should have access to their revenue growth readily. Since the Subscription-based Business Model is fast in growth, companies should be able to review their growth over weeks or months to adapt to any errors in their strategy. Since predictable cash flow is a key component of the Subscription-based Business Model, your revenue growth should reflect that. In cases that it does not, you will be able to win back lost customers with churn rate or improving your communication strategy. All in all, for the Subscription-based Business Model, you would need to dive into these features and build your brand. If you are looking for an experienced consultant who is an expert in the Subscription-based Business Model then contact us today.