What is subscription billing software?
Recurring billing is a payment model that allows companies to invoice their customers based on a schedule that the company specifies (i.e. once a month, once every quarter, etc.) The most common forms of recurring billing include subscriptions, membership dues and payments that are made under an installment plan.
Embrace new business models with confidence
Subscription & Usage Billing Datasheet
Today’s increasingly complex business models have outgrown the old-school back office. The single revenue model—one product, one price, one time—is a dying strategy. Today, businesses must offer flexible and personalized pricing, billing, and even monetization options. What’s also evolving is a whole new requirement on your billing models and systems to run them and the need for subscription billing software.
What is subscription billing?
Subscription billing is the payment model where companies have established a relationship with the customer to bill and invoice based on a specific schedule (i.e. once a month, once every quarter, annually, etc.). Subscription billing is a form of recurring billing and its most common use cases include Software-as-a-Service (SaaS), as well as memberships involving dues and payments, e.g. Amazon prime, New York Times, Netflix, etc.
Subscription & Usage Billing Tour
Embrace new business models with confidence with cloud-based billing from FinancialForce. Both powerful and agile, this solution is designed to support even the most complex contracts in one closed-loop process. Centralize any combination of billing models with recurring or non-recurring revenue on a single platform. And create one billing center for both the front and back office without costly integrations or lost data.
Why is subscription billing such a popular option for companies today?
Not long ago, pricing for products and services was straightforward. Businesses would pay a set fee to own a product indefinitely, or they would pay time and materials. But the days of simple pricing are ending.
With the advent of the cloud, software companies began providing software-as-a-service, in which customers pay a fixed recurring fee. Quickly, this billing model spread to other markets such as hardware and IT consulting, as well as consumer goods and services, and new pricing models evolved. Today, almost everything is available “as a service.” Some of the most common pricing models include:
- Standard subscription pricing - Customers pay the same fee over a consistent interval for a defined level of service
- Usage-based pricing - Determined by the consumption of bandwidth, data, etc. may fluctuate a great deal from month to month
- Hybrid pricing - Combines a flat recurring fee with a consumption fee if usage exceeds a predetermined level
- Freemium pricing Customers get base features for free and pay to unlock new functionality or services
Companies that use a managed services billing model or even a hybrid model with some one-off product and service sales will find subscription billing indispensable. This form of billing automates much of the invoicing process. Invoices are no longer sent out manually, but automatically; and – if the customer agrees – can be automatically deducted from their bank accounts.
Not only does this free up an immense amount of time and resources for the company, it also frees up time for the customer, who no longer needs to manually enter in his or her billing information every month. It’s a win-win for both parties involved.
Is subscription billing software flexible enough to allow multiple payment models and pricing structures?
Yes. Companies that use subscription software billing software are able to easily add support for a wide assortment of payment models and pricing structures. Whether the payment is recurring, non-recurring, or there are renewal terms that must be agreed upon, subscription billing software is able to manage and automate the processes.
How are payments managed and tracked with subscription-based software?
Subscription based software gives companies an unprecedented level of visibility and management tools for both recurring and non-recurring payments. A company can view the entire process, from invoice to payment, all in one place. On top of that, they have complete control over when invoices go out and what notifications are sent to customers to ensure a timely payment.
What are the benefits of offering FinancialForce Subscription & Usage-based billing on the Salesforce Platform?
When businesses choose FinancialForce as their subscription billing solution, they’re taking advantage of one of the most successful cloud business platforms: Salesforce. Customers that already use Salesforce CRM find it simple and convenient to have all of the front and back-office processes handled in one place. With FinancialForce Subscription Billing software, companies can generate proposals for time, materials and options, and manage tangible and non-tangible goods all in a single contract.