Max Revenue with SubscriptionFlow - Recurring Billing Software

Recurring billing is the type of billing in which a customer is charged on a repeated basis in exchange for continuous service usage. Recurring billing is a common feature of the SaaS subscription businesses. Take the example of Spotify, for instance. In order to receive uninterrupted music streaming, users have to pay every month.

It is not necessary for recurring billing to take place monthly. The billing periods depend upon the subscription plans chosen by the users. For example, a company can offer its online services on a weekly, bi-monthly, quarterly, annually, or any basis. Companies are free to decide the time-frame according to their strategy.  Apart from SaaS companies, there are other products and services as well on which recurring billing might be applied. For example, we have gym memberships, gated-content communities, subscription boxes, utility services etc. which benefit from the subscription model. They bill users on a recurring basis at pre-defined time intervals.

The process of recurring billing can be simplified into three parts. The first part is when the user agrees to a product’s or service’s terms, and signs up for them. During the sign up process, the user also provides their payment details for current and future payment extraction. The second part is that when the user’s subscription payment date arrives, they get billed by the company. The third part is the user receiving the payment confirmation receipt. The last two steps get repeated at the next billing period, and the next, and so on until the subscription duration lasts.

There are some major benefits that companies can derive from the recurring billing model. One benefit is convenience. Convenience for both the business and the customer. Recurring billing runs on automation, which means that customers do not have to make manual payments each time. They do not even have to type in their payment details again and again. The payments get fetched automatically from their accounts. Businesses also leverage this situation, as they do not have to chase their subscribers to pay. Moreover, recurring billing unlocks predictable revenue streams for the companies. Once they acquire a subscriber, they can derive revenue from them repeatedly. Thus, companies look forward to this revenue every billing cycle. They can predict their future finances, and manage them better.

In SaaS, the recurring billing model means that the customers are charged on a recurring basis. For example, they are charged each week, month or year in exchange for a specific product or service. Recurring billing provides businesses with continuous, and predictable revenue streams. This payments model is based on the subscription business model. Subscribers are required to pay regularly to receive uninterrupted services.

There are some key characteristics of recurring billing in the context of SaaS. This first one is automation. SaaS businesses are cloud-based. In order to deal with a large volume of subscriptions timely, and effectively, they leverage billing automation. Customers are billed automatically when their billing dates arrive.

Another feature of recurring billing is the subscription tiers. Businesses typically offer more than one subscription plan to cater to a wide audience. Each plan has a different price. Customers have to choose one plan, and then pay its price on a recurring basis. However, it is not necessary for customers to stick to their original subscription plans. They can always upgrade and downgrade their subscriptions, and then be billed accordingly. This unlocks a third aspect of recurring billing: flexibility.

Businesses relying on powerful billing software can offer more billing flexibility to their subscribers. For example, instead of charging a flat fee each month, they can encourage users to pay based on their usage. This is referred to as usage-based billing. Moreover, companies can also offer discounts to attract or retain customers. These discounts also impact the recurring amounts collected. Furthermore, the recurring billing model allows businesses to focus on retaining their customers, as they do not have to spend their energy manually tracking each customer, and chasing their payment.

SubscriptionFlow is an all-inclusive subscription management platform through which you can automate all recurring billing & payments. Not only monthly payments, but different time intervals can also be set up such as weekly, quarterly, and so on.

SubscriptionFlow allows users to design and implement hybrid billing by setting up one time, recurring, or usage-based charges. They can set up flat pricing, usage-based pricing, volume-based, tiered pricing, or overage pricing for their recurring billing. Moreover, add-ons like discounts, vouchers, etc. can also be set up.

SubscriptionFlow is a subscription management platform that facilitates its customers with the following benefits:

• Automation
• Various Pricing and Billing Models
• Robust Invoicing and Billing
• Versatile Accounting & Finance Integrations
• Multi-currency & Multiple Payment Methods Support
• Safe, Secure and Seamless API Management
• Inclusive Recurring and Subscription Billing Features
• Reporting And Analytics

Choosing the right pricing model for your business involves several factors. Firstly, you must determine the value metrics for your businesses to further understand the cost of products, needs of customers, and profit gained. With this, you will be able to select the right pricing model for your business. From flat-free, usage-based billing models, to hybrid billing models, merchants get a wide array of options in SubscriptionFlow that they can choose as per their needs.